The information memorandum (also known as a “teaser”) is in most cases an anonymised short presentation of the business up for sale.
If the teaser attracts broad interest, the interested party will receive
- upon signature of a Confidentiality agreement
- the Letter of Intent ([LoI], also Memorandum of Understanding) which
- contains more detailed information
- may offer the basis for an initial ball-park offer by the party interested in buying.
Where businesses are sold on the basis of an asset deal, an information memorandum is used more rarely than in relation to share deals, unless the vendor has instructed a Business Broker.