All guidance

Owners, accountants and brokers

Teaser or Information Memorandum: what is the difference?

An anonymised teaser and a full Information Memorandum serve different purposes. The teaser helps a buyer decide whether a confidential opportunity deserves further consideration; the IM supports a more detailed assessment once the appropriate confidentiality arrangements are in place.

01

The teaser: enough to establish relevance

A teaser is intentionally short. It will usually summarise the sector, broad activity, geography, scale and key characteristics of the business while withholding names and other details that could identify it.

The right level of detail depends on the market. A very narrow location, distinctive contract, exact property description or recognisable customer can identify a company even if its name is omitted. Anonymisation therefore requires editorial judgement, not simply removing the logo.

02

The IM: a fuller commercial account

Once a prospective buyer has progressed appropriately, an IM sets out the business model, customer and contract profile, operations, people, premises and historical financial record in more depth. It should also explain significant adjustments to earnings and distinguish established facts from owner views.

A useful IM is structured so that a buyer can understand the opportunity and recognise the issues that require further investigation. It should not substitute optimistic statements for specific, supportable evidence.

03

Confidentiality is more than a label

A teaser may be circulated to generate initial interest; an IM usually calls for tighter control over who receives it. The adviser or seller remains responsible for determining appropriate confidentiality arrangements and access to sensitive information.

There are no automatic guarantees of confidentiality simply because a document is called a teaser or stamped private. Names, numbers and commercially sensitive details need an appropriate review before anything is released.

04

Keep both documents consistent

The teaser and IM should draw from the same reviewed underlying facts. Their detail differs, but the broad financial scale, descriptions and transaction framing should not contradict one another. If material information changes, both documents may need to be reviewed again.

General guidance only. Any financial adjustments and commercial statements require evidence and review for the particular business. This service does not replace due diligence, valuation, legal, tax or accountancy advice.