What is a CIM?
A confidential information memorandum (CIM) is a document prepared by a company in an effort to solicit indications of interest from potential buyers. The CIM is prepared early on in the sell-side process in conjunction with the seller’s investment banker to provide potential buyers with an overview of the company for pursuing an acquisition. The CIM is designed to put the selling company in the best possible light and provide buyers with a framework for performing preliminary due diligence.
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Confidential Information Memorandum (CIM): Format and Sections
The following are some of the key sections of a confidential information memorandum (CIM).
- An overview of the key financials, products or business lines
- A summary of historical financials and projections
- A review of the company’s competitive landscape, operations, business lines, products and strategy
How to Prepare a CIM
The seller’s investment banking deal team plays a large role in the creation and distribution of the CIM. Usually, senior deal team members will solicit detail from the seller.
The M&A analyst will turn that detail into an appealing presentation. Preparing the CIM can be time-consuming, involving countless iterations and revisions.
