Insights & Info

Insights > What is a Confidential Business Profile?

What is a Confidential Business Profile?

By Generational Equity

Confidential Business Profile

Recently I participated in a webinar on “teasers”, AKA Confidential Business Profiles (CBP). Teasers are critical documents in the M&A process. Essentially this is the one/two-page overview that you send to your target companies that outlines and highlights your investment opportunity to them. As you can imagine, these teasers are critical to successfully attracting interest in your business.

The webinar was hosted by The M&A Source and was led by Lamar Stanley, a vice president with Gen Cap America (GCA), a private equity firm whose primary objective is to partner with owners and management teams who have a willingness to operate and grow successful businesses. In all investments, senior management is involved in equity ownership, giving them a meaningful stake in the success of the business.

GCA is a partner with management teams who wish to invest in their companies by becoming part of the buying group. Recapitalizations are also structured for business owners who desire immediate liquidity, yet wish to participate in the growth of their business by maintaining operating control.

Mr. Stanley has been involved in the private equity world for a number of years and is a great source of knowledge regarding what it takes to create a fantastic Confidential Business Profile. Last year, his firm looked at 500 opportunities (teasers) and invested in just four of them. That means that your CBP needs to be able to capture the attention of fellows like Stanley, and do so quickly!

Here are some of the keys to a great CBP according to Mr. Stanley:

  1. Clarity is key: Be clear on how the company generates revenue
  2. Provide facts regarding when the company was founded, sales mix, industry niche
  3. Three years of revenue and EBITDA (earnings before interest, taxes, depreciation and amortization)
  4. At least two years projected revenue and EBITDA (the more years the better)
  5. Describe what the owner wants out of this transaction?
  6. Four or five bullet points regarding the strengths of the company
  7. Confidentiality is key!!!

The last bullet point above really highlights the challenge of creating an eye-catching M&A teaser: Disclose as much as you can without identifying who you are! 

This is a real skill and one of the many reasons that our deal team at Generational Equity is so successful. We maintain our client’s confidentiality at all costs. The key is disclosing enough information to get the buyers to sign a non-disclosure agreement (NDA), while at the same time not providing them with too much information to figure out who your company is. 

Our firm has been named Investment Banking Firm of the Year three consecutive years by The M&A Advisor for one reason: We do a great job of finding and attracting buyers for our clients. If you are going to be on your own without representation, be sure to be very careful when you create your Confidential Business Profile. 

If you would like to learn more about the M&A process and how you can find buyers for your business, please reach out to us at 972-232-1121 or visit our website, provide your contact info and we will be in touch. 

One key thought: You never get a second chance to make a first impression with a buyer prospect. Make sure your teasers are clear, concise, accurate, and appealing.

Carl Doerksen is the Director of Corporate Development at Generational Equity.

© 2021 Generational Equity, LLC All Rights Reserved

Make an informed decision

The best decisions in life are informed decisions. We release educational business insights like this every week. Subscribe to make sure you don’t miss the latest news, views and analysis.


Success, you have been added to our list.

We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Thanks again Phil and feel free to have a future client call me if they would like a referral. You are a true professional!
Andy Graham, Vice President, Modern Heating & Plumbing
Tom Staszak is one of the most professional people I have dealt with in my last forty years of business. You’ve got a great group of people and you have built a truly professional organization.
Michael J Polarek, President, Paragon Packaging
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
We thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
Thank you again for all your guidance and support. Any company will achieve what they intend, if they have you on their team!
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Greetings Mike. Thank you for the captivating and compelling presentation you made at the Phoenix presentation last week. Over many years in business yours was the most informative and well-presented presentation, on any subject, that I have ever attended! Your energy and enthusiasm combined with your concise and captivating support of your positions with easily understood examples and data was compelling.
Pete L.
I need to say an immense thank you to Don Ho for his stellar work ethic, attention to detail, and tireless effort. Also thank you to the whole crew at GE! Without you, Don could not do such a phenomenal job. We were shooting for closing and funding before the end of 2020, due to the uncertainty of the political landscape and taxes. I am happy to report we closed last week and will be funding tomorrow.
Dr. Caty J. Catron PhD, RN, VA-BC – Owner, Vic The Picc, LLC
I must say that I have never worked with a more driven, competent and focused individual as Don Ho.
Jay Dinnison, Owner of Sharpe Mixers
We will highly recommend Generational Equity and Musa Jagne to any business owner about to embark on the same process.
Karen S. Williams, CFO, BW Manufacturing
The help you provided us during each step of this process made us feel very comfortable and confident we were selecting the right approach to transition our Company.
Andy Graham, Vice President, Modern Heating & Plumbing
We are extremely pleased with the way Generational Equity handled the sale of our company. Your associates, Tom and Chris, did an outstanding job of getting us (me) through the process.
Michael J Polarek, President, Paragon Packaging
I am pleased that I was able to work with Andrew Byrd throughout this experience. From the first meeting we had in Minneapolis I felt that I was in good hands. His knowledge and expertise is second to none. He guided the process consistently throughout. I feel lucky that I was pared with Andrew and could not be happier that I chose Generational Equity to handle this major life event. Thank you Andrew and GenEq for everything!
Eric Erlandson, Owner, Action Fastenings, Inc.
I wanted to write you a quick letter to express our appreciation and our delight on the outcome of helping us through the process of our recent sale. We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Terry D. Wickman, President, Keytroller
T.D., thank you so much! You are a great leader! I love how you are using your gifts and talents to better others. You are clearly a GREAT COACH! This 3 day session undoubtedly changed the future of our business, and very well may have been the sole catalyst to save my company, my health and my marriage! A genuine “thank you” from the bottom of my heart.
Bryan D. Horn, Owner, Over Under Clothing
Dear Chris and Andre, I just wanted to say thanks for all your help. Even though this process was not an easy one, it was comforting to know that I had a capable team standing beside me. You made me feel like we were almost your only client or at least the most important one. Thanks again, and I will recommend your service in the future.
Shenille Engelhart, Owner – CLS Technology
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Michael worked tirelessly, He followed every lead meticulously and urgently to make sure nothing was missed.
Robert Evans, President and CEO of Mealtracker Dietary Software
The process was much more involved than I expected and your help, experience and advice was a big factor in making the negotiations go as smoothly as possible.
Terry D. Wickman, President, Keytroller
I quickly recognized that Don was working for Sharpe Mixers above all else, and held our interests above others.
Jay Dinnison, Owner of Sharpe Mixers
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
Bil MacLeslie, CEO, ipHouse
I couldn’t have asked for a better team than Michael and Deborah. We couldn’t have done it without them.
Robert Evans, President and CEO of Mealtracker Dietary Software
Bruce and I wanted to take this opportunity to thank Generational Equity for assigning Musa Jagne to our transaction. In Bruce’s words, “Musa did one hell of a job for us!”
Karen S. Williams, CFO, BW Manufacturing
We were happy to see the interest in our company and what we cherished has not just a valuable company but an important company to the communities we served in.
Larry Moore, Owner, A Company Portable Restrooms
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse