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.
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).
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.
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.
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