Teaser

A teaser is the first document in an M&A sale process: a 1–2 page anonymous summary designed to generate interest among qualified buyers without revealing the business’s or seller’s identity. Its role is to get the right buyer to sign an NDA to receive the CIM; it is not a valuation document or a substitute for the CIM. In Mexican SMEs it is often omitted in bilateral processes; in processes with multiple buyers it is the first filter that separates serious buyers from noise.

What does a teaser contain?

• Anonymous business description: Sector, geography, operating model, years in operation. No company name, no owner name, no data that would let the buyer identify the business on its own.

• Key financial metrics: Revenue range, EBITDA range (reported or normalized — clearly indicated), margin profile, revenue trend. Presented as ranges or rounded figures, not exact numbers.

• Opportunity profile: Why the business is for sale, what makes it attractive, how the transition looks at a high level. One paragraph — enough to create interest, not to answer every question.

• Indicative transaction structure: Asset or share purchase, indicative enterprise value range if the seller wants to anchor expectations, exclusivity expectations. Many teasers omit the EV range entirely and let the CIM do that work.

• Next steps: How to express interest, NDA process, timeline. Clear, brief, unambiguous.

How is the teaser used in the sale process?

The teaser is distributed to a curated list of potential buyers — strategic acquirers, financial investors, or sector funds — before any confidential information is shared. The goal is a binary response: interested or not. Buyers who express interest sign an NDA and receive the CIM. Those who decline are thanked and leave the process.

In both cases the teaser must be prepared and approved by the seller before any contact with buyers — not drafted on the fly during a call.

What the buyer does with the teaser: reads the executive summary and financial metrics. In 30 seconds it decides whether sector, size, and margin profile fit its investment thesis. If yes, it signs the NDA. If the teaser is vague, generic, or missing key metrics, most buyers will not bother to ask for more — they move to the next opportunity.

Fictional example, industrial cleaning services sector, Mexico 2024: a seller prepared a one-page teaser describing the business as “industrial services company in northern Mexico, 11 years in operation, recurring revenue with a manufacturing customer base, normalized EBITDA in the 2.5–3 MXN million range, indicative multiple 4x–5x, asset structure, 12-month transition.”

• Six teasers were sent to strategic buyers in the sector.
• Four signed NDAs within 5 business days; two declined without responding.
• Of the four who received the CIM, two submitted indicative offers.
• A LOI was signed.

How do the teaser, CIM, and LOI differ?

Omitting the teaser is common in bilateral processes and saves time. Omitting the CIM is a mistake — the buyer cannot build its investment case without it and will end up declining or submitting a low-quality offer.

What makes a teaser bad?

• Too vague.

  A teaser that says “profitable services company” without sector, size, or margin profile does not generate qualified responses. The buyer needs enough information to self-select — not enough to identify the business.

• Too specific.

  A teaser that names the company, owner, city, and exact EBITDA defeats the purpose of anonymity. If the buyer can identify the business before signing the NDA, the seller loses negotiating leverage and confidentiality protection.

• No clear next steps.

  A teaser that describes the business but does not say how to express interest, what the NDA process is, or what the timeline is leaves serious buyers with no path forward. They move on.

• Metrics inconsistent with the CIM.

  If the teaser says “normalized EBITDA 3 MXN million” and the CIM shows 2.1 MXN million after stricter normalization, the buyer’s first impression is that the seller inflated the teaser. Trust erodes before the process starts.

What do buyers and sellers ask about the teaser?

Is the teaser always anonymous?

Yes. The teaser never identifies the company, the owner, or any detail that would allow the buyer to locate the business on its own before signing an NDA. Anonymity is not a courtesy — it is legal and commercial protection. A seller who reveals its identity before the NDA is signed has no contractual protection if the buyer shares the information or uses it competitively.

How many pages should a teaser be?

One to two pages. The teaser is a filter, not a pitch deck. A buyer who needs 10 pages to decide whether to sign an NDA is not a serious buyer — or the teaser is doing the CIM’s job, i.e. the seller is handing over confidential information without protection.

Does the teaser include price?

Sometimes. Including an indicative range of enterprise value or multiple filters out buyers whose return requirements do not fit the deal — saving time for both sides. Omitting price keeps more buyers in the process but increases the risk of very low offers or wasting time with buyers who will never reach the right valuation. In Mexican SME transactions, including an indicative multiple range (e.g. “4x–5x normalized EBITDA”) is common and reduces process friction.

Is a teaser needed in bilateral processes?

Not always. In a bilateral process — a single known buyer, direct approach — the teaser step is replaced by a direct conversation followed by NDA and CIM. The teaser adds value when there are multiple potential buyers who must self-select before the seller invests time in distributing the full CIM. In bilateral processes the CIM is the first formal document.