After finding adjusted EBITDA and determining valuation, the investment banker can build the marketing material for the target company which includes a teaser and a CIM. The teaser is a summary of the client’s key selling points. The teaser can be broken down in the following manner along selling points including:
- Overall financial profile: three years of historical revenue and EBIT/EBITDA and at least two years of projected revenue and EBIT/EBITDA
- Indicate type of transaction
- Indicate sustainable growth potential based upon competitive advantage:
- Customer entrenchment and high switching costs (ex. Software)
- Long term contracts (ex. Equipment service companies)
- Brand recognition (ex. Consumer products)
- Intellectual property
- Stable management teams
- Culture