Process

CIM (Confidential Information Memorandum)

A seller-prepared document — typically 20-50 pages — that provides a structured overview of the business for prospective buyers, including financials, operations, market position, and growth opportunities.

Key Insight

The CIM is the seller's best case. Read it to understand what they want you to believe — then build your own independent view from the underlying documents.

What the CIM Contains

A broker-prepared CIM typically includes:

  • Executive summary: Business overview, investment highlights, ask price
  • Business description: History, products/services, customer base, geographic footprint
  • Financial summary: 3-year revenue, SDE/EBITDA trend, TTM performance
  • Operations overview: How the business runs day-to-day, team structure, technology
  • Market and competition: Industry context, competitive position, growth narrative
  • Growth opportunities: What a buyer could do with the business
  • Transaction overview: Deal structure, asking price, seller's timeline

How to Read a CIM

Look for what's missing, not just what's there. A CIM that doesn't mention a major customer by name — just "Customer A represents 32% of revenue" — is signaling concentration risk. A CIM with no mention of key employees is flagging dependency. Absence of information is information.

Verify the financial summary independently. The CIM's EBITDA number reflects the broker's add-back choices. These add-backs may be aggressive. The first step of financial due diligence is rebuilding the financial summary from raw documents.

Don't fall in love with the growth story. Every CIM includes a growth opportunities section. Sellers don't leave growth on the table — if the opportunity were obvious and executable, the current owner would have captured it.

Teaser vs. CIM

Before signing an NDA, buyers typically receive a teaser — a 1-2 page anonymous summary that describes the business without identifying it. Upon NDA execution, the full CIM is released. The teaser is designed to generate interest; the CIM is designed to support an offer.

Free Prescore — No Credit Card Required

Apply this to a real deal in minutes. No account, no commitment.