What is a Deal Teaser?
In the high-stakes world of mergers and acquisitions, the "Teaser" is your opening pitch. It is a blind document—meaning the company name is never explicitly stated—sent to a curated list of potential financial and strategic buyers. Its purpose is simple yet critical: generate enough interest to get a Non-Disclosure Agreement (NDA) signed.
If the teaser fails, the deal dies before it even begins. It acts as the gateway to the more detailed Confidential Information Memorandum (CIM). The art lies in balancing persuasion with confidentiality. You must reveal enough about the company's growth story and financial health to excite a buyer, without giving away its identity to competitors who might be browsing the market.
Key Elements of a Killer Teaser
A standard teaser is typically a 1-2 page document. While brevity is key, every square inch of real estate matters. Here are the four critical sections that every effective teaser must include:
Investment Highlights:
This is your "elevator pitch." Why should a buyer care about this asset?
Market Leadership: Is the company a leader in a niche market?
Recurring Revenue: Does it have high-quality, sticky revenue streams (e.g., SaaS contracts)?
Proprietary Technology: Does it own defensible IP or patents that create a moat?
Management Team: Is there a seasoned team willing to stay on post-transaction?
Financial Summary:
Buyers need to see the numbers immediately. A teaser typically includes a high-level summary of historical performance and projected growth.
Revenue & EBITDA: Show the last 2-3 years of actuals and 1-2 years of projections.
Margins: Highlight Gross Margin and EBITDA margins to demonstrate profitability.
CAGR: Explicitly state the Compound Annual Growth Rate to frame the growth story.
Customer Overview:
Without naming specific clients, you must demonstrate the quality of the customer base.
Concentration: Prove that no single customer accounts for more than 10-15% of revenue (low concentration risk).
Client Type: Mention if they serve "Blue-Chip" Fortune 500 companies or a diversified base of SMBs.
Retention: High Net Revenue Retention (NRR) rates are a massive selling point.
Growth Opportunities:
The "upside" story is what buyers are actually paying for. You need to paint a picture of what they can do with the business.
Geographic Expansion: Can the product be sold in new regions?
Product Extensions: Are there obvious cross-selling opportunities?
M&A Platform: Can this business serve as a platform for rolling up smaller competitors?
The Psychology of the Blind Profile
Writing a teaser is an exercise in restraint. You cannot say "Netflix for Dog Walkers in Austin, Texas" because that makes the company identifiable. Instead, you might say "Leading Subscription-Based Pet Services Platform in the Southwest US." The goal is to filter out "tire kickers"—buyers who are just curious—and attract serious bidders who have the capital and strategic intent to close.
The teaser sets the tone for the entire transaction. A sloppy teaser suggests a sloppy process, which can depress valuation. A crisp, data-driven, and visually professional teaser signals a premium asset. For more on the deal process, check out our guide on Due Diligence.
