What is a CIM?
A Confidential Information Memorandum (CIM) is an M&A document prepared by a company in an effort to solicit indications of interest from potential buyers.
What is the Format of a CIM?
Under the context of M&A, the confidential information memorandum, or “CIM”, is a document prepared early on in the sell-side process in conjunction with the seller’s investment banker to offer potential buyers with an overview of the company on sale.
The function of a CIM is essentially alike a marketing document, in which the sell-side banker compiles a list of potential buyers that have expressed interest in 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.
The following are some 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.
Learn More → Investment Banking Primer
Investment Banking CIM Example (PDF)
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.
Dear Wallstreetprep,
Would it be possible to receive more sample CIMs related to sales of corporations rather than an real-estate based entity?
Hi, Jihoon,
Can you clarify what you mean by it being possible? Do you mean are they more likely to be publicly available?
Brad
Hi Brad,
Thanks for the prompt reply.
Could you send me links to or tell me how I can access more sample CIMs that are publicly available? I would like to see CIMs regarding sales of more manufacturing or service-oriented corporations rather than real estate, if possible.
Hi, Jihoon,
Please enter your name and email for the sample CIM mentioned in the article. I am afraid that finding other CIMs and sending them to you is beyond the scope of our support.
Brad