A well written Confidential Information Memorandum (CIM) has many sections. And can make a difference between an acquirer interested in further engaging with the business or not.
We can’t stress enough how important the information is, that should be included in the CIM. But let’s face it, you have ran your company for several years and can probably write a book about it. So how do you know what to include in the CIM and what not to include.
Let’s start with the basics first. The first thing that you should include in the CIM is the “Deal Overview”. This includes the company’s current ownership, reason for the sale and the transaction procedure. Then you want to include an “Executive Summary”. And it includes, company snapshot, company highlights, history, key milestones, and growth opportunities.
A section dedicated to the “Industry” should also be included to highlight to the acquirer where the industry as a whole is trending. A separate section should focus on “Sales, Customers & Marketing” where you want to highlight different avenues of sales, variety of your customers and your marketing abilities.
“Operations” is another section of the Confidential Information Memorandum that should be included which showcases all the dynamics that goes into the operations of the company, like experienced staff, facilities, assets, equipment and such. To highlight what the company offers you can utilize the “Products & Suppliers” section. And lastly you should include the financials of the company on a high level under the “Financial Overview” section.
To see a live example of an effective and the sections that goes into the Confidential Information Memorandum (CIM), please browse to our website.