Executive Summary Elements
Summarize the 5 W’s of the opportunity (What, Where, When, Why and Who) in a few sentences. Speak to the larger vision and how current strategy fits. Mention 5 year revenue goal.
State the purpose of the RFP (i.e. seeking a strategic partner/investor to raise $ or acquire company ………..). Short discussion of your company and if there is acquisition target, why synergistic.
B. Market Description
Description of Market
Size of Market
How large is market opportunity, both current strategy and expanded vision
Growth of Market
Describe compelling business case
What inefficiencies are addressed
Describe business strategy
D. Product Description
Describe distribution channels
E. Sources of Revenue
Describe business model
Address specific drivers i.e. why scale matters,
State sources of revenue
Specify revenue drivers
Describe competition both for current and future vision
Describe organization, specify management team
Describe Board of Directors/Advisory Board
Provide summary bios
H. Current Status
Describe current operating status including office location, number of employees, clients, strategic partnership arrangements, contracts, marketing efforts etc. The purpose here is for an investor to determine how real you are.
Include Summary table of financials (historical and projected). Include revenue by product line, expenses and synergies if acq, profit, EBITDA (if acquisition for target and combined)
Do two years historical, current year and five years projection; Can do at summary level and provide details later
Include current summary balance sheet, target and combined
State assumed level of financing to meet projections
Specify any other assumptions
If not cash flow positive, when?
Pay attention to change in revenue and change in EBITDA year to year, revenue growth, margin growth
Describe capitalization (i.e. ownership, investment to date etc)
Describe transaction (what you are looking for from a partner/investor, valuation, licensing, capitalization, etc.).
Include working capital requirements