How to pitch an under performing company?

There is usually a reason why they are under-performing. You might address those reasons and why you expect them to change. Examples: -Lost largest customer; increasing sales efforts -Costs of materials too high and can't pass through; seeking new suppliers -Economic recession; discuss growth in normal years -Management salaries are high; might not stay on post transaction

It's also about reaching out to potential acquirers and understanding why they might be a fit. More often than not there are synergies which may turn that shit sandwich into an appealing turkey club (copyrighting that phrase - don't use it). If I take RobberBaron's Shitty Aircraft Co. - which is losing $100mm a year - to Boeing, they might have the resources that would otherwise be duplicated or unnecessary if they took on all they acquire. They might have lower-cost suppliers, they might fire me and take away my $50mm salary, and they might cut out some relationships that I have with smaller customers that just aren't profitable or worth it. Those are obviously just a few examples. But in the end, they turn my shit into gold and realize that the acquisition not only gave them a 15%+ IRR on their investment, but it was Accretive to their earnings per share as well. I'll just say that you need to know your space and what corporate development teams at the companies in your space are looking for.

EDIT; I'll also add that when you send out a teaser, you're not going to address any issues. You're going to make it as rosy as possible. And I somewhat hate that for two reasons: 1) you feel bad because you're over-selling the opportunity upfront but 2) if you told it as it is in a teaser, potential buyers are going to pass immediately on what could be a pretty good investment.