How Executive Summaries Can Attract Buyers in M&A
They say not to judge a book by its cover. Well, when it comes to M&A, the truth is that buyers often make snap judgments based on a business’ executive summary.
Why is an executive summary essential for finding the right buyer, and what goes into crafting an effective one? At Symmetrical, our team works with sellers to create strong executive summaries for businesses in a wide range of sectors. Read on to find out more about what goes into an executive summary and how this can lay the groundwork for the successful sale of your business.
Why an Executive Summary Matters
Think of an executive summary like a cover letter in a job application, or the pilot episode of a TV series: This represents your first impression, and the goal here is to grab a buyer’s attention and get them wanting more.
This is important for a number of reasons. First, buyers looking to make a strategic acquisition usually consider a number of different companies. A strong executive summary can help your business stand out among the fray.
Even more importantly, an executive summary is a way for a seller to capture the attention of buyers, which will most likely lead to a successful deal. One of the key elements of any good M&A transaction is the connection between the buyer and seller. The executive summary is the first test of this connection and can be designed to appeal to buyers that will fit well with your existing business.
Four Key Questions: Who, What, Why, and How?
Any good executive summary should answer four key questions: Who, What, Why, and How?
–What is your business?’
–Who are you as a business? (This can be both a philosophical question about your company values and a practical one about your employees and leadership)
–Why are you going to market now?
–How will you benefit the buyer?
Keep in mind it’s not enough to just answer these questions. It’s how you answer them. Attention spans are short, and you should strive to make your executive summary a compelling read. Brevity is your friend. This isn’t the place to dwell on the nuances of your corporate history. Those details can come later.
Think From the Buyer’s Perspective
What is a buyer trying to accomplish?
Most of all: adding value. This is why any executive statement should contain a value statement — a section that explains your company’s place in the market, its strategic importance, and what it can offer to a buyer. This value statement is arguably the most important component of the entire executive statement and typically appears at the top of the document.
Interested in Taking the Next Step?
At Symmetrical, we understand that the best deals are the ones with a seamless match between seller and buyer. And an executive summary represents the first step toward attracting the right buyer. Our team will work with you to learn your business, and then design an executive summary that achieves your goals. To learn more about how we can help kickstart the M&A process, get in touch with us today.