A Confidential Information Memorandum (CIM) is crucial in the business sale process, offering potential buyers a comprehensive overview of the company. While no two CIMs are usually the same, one typically begins with an executive summary covering the business’s history, evolution, and operations.
The CIM would then typically detail the company’s operations, including products or services, business model, and operational processes. It may also provide insights into the supply chain, customer base, and key partnerships, industry trends, and competitive landscape, giving buyers insights into market opportunities and threats.
Financial performance is also a major focus, featuring historical statements—income, balance sheets, and cash flow—as well as projections and key metrics like EBITDA, margins, and return on investment. Note, however, that not all details, especially financial, will be included. Typically deeper dives on financials occur during the due diligence period.
In essence, the CIM is to get a potential buyer oriented and spark a conversation.
Menu
