The teaser usually comprises one to two pages. It describes the sector, region, business model, customer and product structure, and revenue and earnings in broad ranges. Name, location and distinctive details are chosen so that third parties cannot identify the company. The M&A adviser sends the teaser to the candidates on the short list.
For the owner of a mid-sized company, confidentiality is crucial. Rumours of a sale unsettle employees, customers, suppliers and banks. The teaser allows a market test without taking these risks. Only those who express interest and sign a confidentiality agreement learn the name and receive the information memorandum.
In practice, anonymisation is harder than expected. In niche markets, competitors know each other, and a combination of region, revenue and specialisation is often enough for identification. The teaser should therefore contain no trade secrets and be agreed with the seller line by line.
Example
Hypothetical example: A teaser describes a “manufacturer of specialist valves in southern Germany with 120 employees, revenue of €20 million to €25 million, EBITDA margin above 12 percent”. The adviser sends it to 40 recipients. 14 express interest, and 11 sign the NDA and then receive the company's name.
Teaser vs. information memorandum
| Feature | Teaser | Information memorandum |
|---|---|---|
| Length | 1 to 2 pages | Usually 30 to 80 pages |
| Anonymity | Anonymous | Name disclosed |
| Prerequisite | None | Signed NDA |
| Purpose | Generate interest | Enable an indicative offer |
Sources
- Gesetz zum Schutz von Geschäftsgeheimnissen (GeschGehG), § 2 Begriffsbestimmungen, Bundesministerium der Justiz / gesetze-im-internet.de
- KfW-Mittelstandspanel: Nachfolge-Monitoring Mittelstand (KfW Research Fokus Volkswirtschaft Nr. 526, Januar 2026), KfW Research