The result achieved by performing step 3
We will prepare for you:
- teaser (a short sales presentation of the company),
- information memorandum,
- an agreement on the protection of confidential information,
- a data room with all documents.
As in other fields, good preparation is half the way to success. That’s why preparing for the sale in Step 3 is so important. Before we can actively start the process of strategic marketing, we need to prepare information material. We need to create clear, consistent documentation that will spark buyers’ interest in buying and establish strong credibility. This offering material will form a central part of our sales strategy. Documents will be sent to customers gradually in step 4 of the sales process.
This crucial step exposes the most appealing details of your business to customers and shows it in the best possible light to achieve the highest possible sale price.
Short sales presentation of the company (teaser)
A teaser is a short sales pitch of your business, usually 1 to 3 pages long. It is intended to present a sales opportunity and stimulate the interest of potential customers. The teaser reveals enough information to attract interested buyers without revealing important confidential information to them.
After viewing the teaser, customers must sign a confidentiality agreement to receive the information memorandum.
Agreement on the protection of confidential information (NDA – non-disclosure agreement)
Since in the next steps a lot of confidential information will be disclosed to potential customers, the inappropriate use of which could harm your company, we sign an agreement with customers on the protection of confidential information.
The NDA primarily regulates the limitations and obligations of the buyer in the handling of data. An agreement on this is very important, as access to certain confidential information poses a high risk to you both from a business point of view (trade secrets, especially in the case of a buyer who is a direct competitor) and due to other risks (personal data, inside information, confidential contracts with third parties, etc.).
Information Memorandum (IM)
An information memorandum is a 20 to 30 page long report that is designed to present your company to potential customers in the best possible light to achieve the maximum sale price. For the preparation of the information memorandum, we use the data collected in the valuation of your company. The document covers the key benefits of buying your business, your competitive advantages, and the reasons why your business is a great acquisition opportunity. An information memorandum contains most of the facts that customers need to understand your business, see its value, and make an offer. It is available to customers only after signing a confidentiality agreement.
This is one of the first documents a customer will see about your business and ensures that we make the best possible first impression.
The information memorandum contains details about all the main aspects of your company, such as: company overview, industry and competitive environment overview, product/service description, description of marketing strategy, market opportunities, growth and improvement opportunities, overview of employees, key customers and suppliers, business overview, historical financial data and business forecast, past and future investments in fixed assets, and the company’s indicative price and transaction structure.
The information memorandum anticipates the most common questions that customers will ask and provides answers to these questions in a professionally prepared document that will speed up the sales process.
Data Room
When you accept the buyer’s offer in the later steps, they will conduct a due diligence to assess the legal and economic condition of your business. It makes sense to prepare a data room early in the sales process, as this speeds up the further course of the sales process, and at the same time allows us to discover information that could complicate the further course of the sale when reviewing the documentation in advance. Buyers become cautious if they detect any problems, so it is best to fix them in advance if possible. After months of looking for a buyer, losing them to something that could be fixed from the start is a waste of time and money.
During preparation of data room, we’ll review your documents and assess any barriers and issues that may arise, and make recommendations to improve the quality and consistency of your data. This allows you to solve problems before the buyer notices them, which prevents surprises during a careful inspection and increases the chances of a successful sale.
