When marketing our clients to potential buyers, we produce a number of presentational documents that outline the company’s key aspects and value drivers.
We spoke to our Corporate Finance Director, Dave Gardner, about the importance of these marketing materials being of the highest quality possible.
What kind of marketing materials do you produce and how do you judge what is best suited to each individual company?
Dave Gardner: For each client, we initially produce an opportunity summary, or a ‘teaser’, which can be sent out to up to hundreds of prospective buyers. This brief and attractive document aims to grab the attention of interested parties by illustrating a snapshot of the company’s product or service offering, location, USPs, recent financial performance and so on. In the teaser, we maintain a balance between presenting all the key details about the company, whilst preserving full anonymity.
If buyers are interested in our client after viewing the teaser, they are able to sign a Non-Disclosure Agreement (NDA) and gain access to a bespoke, detailed document about the company called an Information Memorandum (IM). As the IM includes a full overview of the company (information such as company name, financial performance and client names are disclosed), potential buyers are required to sign an NDA, stating that they will keep the information fully confidential in order to protect our client.
We produce a unique IM for every client. Our specially trained and qualified document writers spend time perfecting the documents, creating individual designs that best suit each client’s industry and service offering. We receive many comments from trade buyers and investors about the high standard and quality of our IMs, indicating that they leave a significant, memorable impact on readers.
We offer some clients the chance to produce a ‘financial model’ that can be shared with interested parties. This includes a full analysis of the company’s financial history and future projections, which is demonstrated in a manner that can appeal to an interested party and help them to understand the future worth of the business. This type of marketing is particularly useful for our ‘higher profit’ clients that display significant growth potential.
What can a client expect from our marketing materials?
DG: We have been told by many clients, previous buyers and investors that our marketing materials are the best in the industry. Our documents are highly professional, yet creative and innovative, showcasing each business in the best light and most attractive manner possible. We spend time researching trade publications and market reports produced by industry specialists, gathering inspiration from these for our own documents.
We aim to keep the information concise, yet detailed, and ensure that we use language, images and concepts that will grab the attention of different buyer audiences whilst also ensuring they have all of the information they may need to make a fully informed decision regarding any potential acquisition.
Why is it so important to produce such high quality marketing materials?
DG: When presenting our clients to the open market, we need to ensure that our marketing materials are of the best quality possible, as they reflect both us as an advisor and the company that is for sale. The standard of the marketing materials and first impressions of the company will ultimately drive the final value of the transaction, and so it is essential that the business is presented in an attractive and appealing manner upon first glance.
Some of the businesses we sell can be very complicated in terms of aspects like service offering, products and company structure, and so our marketing materials serve to make the company appealing to acquire, and aid any interested parties in understanding the company in its entirety.
Can you provide us with an example of how the use of tailored marketing materials led to the success of a sale?
DG: Last year, we completed the sale of a particularly high profile client, a leading textile reclaimer and book recycler, that had previously been on the market with another corporate finance advisor for a number of years. After receiving no offers for the business, our client decided to look elsewhere and appoint the services of KBS Corporate.
The marketing materials produced by KBS Corporate were second to none. The IM was eye-catching, informative and professional, and delivered the exact outcome the client was hoping for: multiple interested parties and an offer that was double the value that the previous advisor had predicted.
How do our marketing materials set us apart from the competition?
DG: Earlier this year, we completed the sale of Corbetts the Galvanizers, the UK’s leading independent hot dip galvanizing specialist. Corbetts was previously on the market with another advisor who produced a short, uninteresting IM, which consequently failed to deliver any serious bidders.
When our materials were presented to the market, we received excellent feedback from a number of trade buyers, PLCs and financial institutions, who compared our presentational document to those they had seen elsewhere. Our client was amazed by the in-depth nature of our IM, the level of detail included and the lengths we went to in order to understand the business, compared to their previous advisor who did not live up to their expectations.
At KBS Corporate, we don’t just invest time into producing our marketing materials, we spend time researching the wider M&A market, making use of a methodology that enables us to find buyers from all corners of the globe and all walks of life, unlike many of our peers.