What is a CIM?
Confidential Information Memorandum...AKA CIM
A Confidential Information Memorandum (CIM) is a document used in mergers and acquisitions to convey important information about a business's operations, financial statements, management team, and other data to a prospective buyer or investors for raising capital.
The CIM is a comprehensive analysis of the company that is on the market. It covers the company’s financials, high level operations, management team, growth opportunities, and any areas that may need improvement.
Buyers only see the CIM after they sign an NDA or a Nondisclosure Agreement. Even after the buyer signs an NDA, some company information is not disclosed until much later in the process. Such as names of customers and employees.
Why it Matters to You
This is a seller’s first impression to a buyer. It gives just enough information about your company to a buyer so they are interested in pursing a potential purchase and to calculate an initial value put forth in an Indication of Interest.