On October 1st, I mentioned that I would update my audience on the progress I was making at my mergers & acquisitions internship. With the exception of the financial statements (Income Statement, Balance Sheet, & Retained Earnings Statement), the PowerPoint presentation is nearly complete. In short, the PowerPoint presentation tells a “story” about the company. It reveals to potential buyers our seller’s products, services, company history, target markets, etc. In these informational packages, I am almost always working with confidential information.
Now let’s think for a brief moment.
As a buyer, anytime you plan to spend hundreds of millions of dollars, ideally it would be advantageous to be somewhat knowledgeable about your purchase. In the case of buying businesses, as a buyer, you want to know the ins and outs of a company before you decide to take any actions.
For the seller, the problem is revealing too much confidential information to the extent in which it could end up hurting the seller’s company. Revealing confidential information runs the risk of larger companies “running away” with the seller’s ideas and possibly mimicking a similar product.
For the past few days, I’ve been working on a one page summary of the business revealing the seller’s identity, customers, markets, manufacturing, reason for transaction, and a couple other factors.
From there, if a buyer shows genuine interest, we would send them further information such as the PowerPoint presentation and what not.
The next step I will be taking is compiling a list of potential buyers and their contact information.
*Keep in mind the audience here are CEOs, CFOs, and upper management. They will be the ones deciding if they want to acquire a business for X million dollars. The previously mentioned is the reason why my PowerPoint and one page summary of the business has undergone numerous drafts and revisions.