9
O P I N I O N
T he M&A transaction “teaser” is the first document that a prospective buyer will review about your firm. This document is designed to make the sale process simpler and more efficient by attracting the right potential buyers while screening out irrelevant ones. Tease them If you’re looking to sell, it’s critical you attract the right buyers with a detailed yet concise overview of your firm.
Noah Hunt
revenue/NSR and EBIT/EBITDA and at least two years of projected revenue and EBIT/EBITDA ❚ ❚ Three to five transaction highlights that discuss the unique strengths of the firm (e.g. market share leader, three-year historical review, growth of 15 percent or more, management experience, etc.) 2)Clearly define the transaction objectives. What is your goal for this transaction? Prospective buyers will appreciate firm owners who are upfront about their reasoning for wanting to conduct a transaction. “Strategic buyers typically review hundreds of acquisition opportunities each year and buy approximately 1 to 2 percent of them.”
Strategic buyers typically review hundreds of acquisition opportunities each year and buy approximately 1 to 2 percent of them. For an AEC firm owner or CEO looking to successfully sell their business, this places a tremendous emphasis on the quality of the offering materials. 1)Don’t forget to include the basics. Buyers should have a clear understanding of the firm after reading through the teaser. Include: ❚ ❚ How the firm generates revenue ❚ ❚ When the firm was founded ❚ ❚ Number of full-time employees and any details about second-tier leadership ❚ ❚ Services offered and markets the firm operates in ❚ ❚ The general background of the management team ❚ ❚ Overall financial profile: three years of historical
See NOAH HUNT, page 10
THE ZWEIG LETTER April 24, 2017, ISSUE 1197
Made with FlippingBook Annual report