Presentation of potential target businesses: Overview, definition, and example
What is presentation of potential target businesses?
Presentation of potential target businesses refers to the process of formally introducing or recommending companies that could be suitable for a merger, acquisition, investment, or partnership. This typically happens in the early stages of a deal, where advisors, sponsors, or business development teams identify promising targets and present them to decision-makers for evaluation.
In simple terms, it’s about putting possible business opportunities on the table for review and discussion.
Why is presentation of potential target businesses important?
When a company is looking to grow—whether by acquiring another business, investing in a startup, or forming a strategic partnership—it needs a pipeline of qualified targets to consider. A structured presentation process helps filter the best options and ensures everyone involved is on the same page.
This process is especially important in private equity, venture capital, and special purpose acquisition company (SPAC) transactions, where deals depend on finding the right target. It also ensures transparency, due diligence, and alignment among stakeholders before moving forward.
Without this step, decisions may be rushed, misaligned, or based on incomplete information.
Understanding presentation of potential target businesses through an example
Let’s say you run a growing software company and you’re looking to acquire a smaller firm that can help expand your product offering. Your business advisor prepares a presentation of potential target businesses—a list of three vetted companies, complete with financials, strategic fit, and valuation estimates.
You review the materials with your leadership team, ask questions, and decide which (if any) targets are worth pursuing. This structured presentation allows you to compare options, prioritize the best fit, and begin discussions with confidence.
An example of a presentation of potential target businesses clause
Here’s how this clause might appear in an investment or advisory agreement:
“The Advisor shall identify and present to the Client one or more potential target businesses that align with the strategic criteria provided by the Client. The Client shall have the sole discretion to approve or reject any target business presented.”
Conclusion
Presentation of potential target businesses is a key step in finding the right opportunities for acquisition, investment, or growth. It creates a clear, organized process for evaluating targets before making big decisions.
For SMBs, having this process in place—whether you’re looking to grow or being approached as a target—can save time, reduce risk, and help ensure you're making smart, strategic moves with the right information at hand.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.