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.
Sections of a CIM
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.
CIM Example: PDF Download Form
Use the form below to download a sample Confidential Information Memorandum (CIM):
CIMs, like investment banking pitchbooks, don’t usually make it out there to the public. Fortunately, a few are in the public domain. Above is an example of a CIM prepared by Bear Stearns in 2007 for American Casino & Entertainment Properties (ACEP).
At the time, ACEP was owned by Carl Icahn and was ultimately acquired by Whitehall Real Estate Funds for $1.3 billion.