The Confidential Information Memorandum, or CIM, is widely used as a marketing tool when selling businesses. In this article we will discuss what the 5 C’s are of a successful CIM.
The CIM is not meant to close the deal for you. It is meant to provide enough salient details to entice key interested parties to engage in the transaction process.
Let’s look at the 5 C’s to include in the CIM.
1.Compel the audience
You don’t need to write a novel to compel the audience. It needs to be catchy enough with graphs, charts and such to capture the audience.
2.Convey the facts
Stick to the facts and ensure they can be supported by reliable data.
3.Communicate the story
A well written story about what the business is, how it got started, the challenges, the SWOT analysis and what the future looks like will definitely gravitate towards the audience.
4.Calculate the returns
High level financials should be included in the CIM, so that the buyer can calculate the returns if they were to purchase the business.
A credible CIM includes evidence of relevant analysis around the financials—for example, historical growth run rates, marketing plans, ROIs, new business wins, new product development, key new hires, new contracts won or tangible pipeline opportunities.
There is a lot that goes into creating a CIM, contact us https://gillagency.co/resources/confidential-memorandum for a template of the CIM.