When marketing a company, we use two documents to communicate the information about your company to our potential buyers:
Business Profile: The business profile, or “teaser” as it is commonly known in the industry, is a 3 page document. The front page contains highlights about your business (the kind the buyers want to hear) and the second contains a more detailed overview of the business and includes a summary of the companies financials. The final page of the business profile is a non disclosure agreement that they potential buyer executes and returns in order to receive the second document that we describe below. The business profile does not disclose the name of the company for sale nor does it disclose any information that could reveal who the company is. For example we don’t disclose the specific city in which the business is located nor do we disclose any other characteristics that could give the company away. Below is an example of a business profile.
Offering Memorandum: The second document we use to market a company for sale is called the Offering Memorandum (OM). The OM is a book that describes in detail the key components that combined make the company the special entity that it is. This document discloses the name and location of the company and any and all unique characteristics that make the company special. One must be very very careful when crafting the key characteristics of a company as there are certain characteristics that buyers place value on and others that they consider negative. The OM is typically 50 to 100 pages in length and requires years of experience to craft correctly, legally (you have to follow proper guidelines and laws, both state and federal, to ensure you are legally introducing your company to investors that are qualified to make such an acquisition), and to maximize value for the seller.