When do buyers see the CIM?
Only after they have shown interest in an anonymous teaser and signed a non-disclosure agreement (NDA). This keeps your sale confidential until a buyer has committed to protecting your information.
The usual order is teaser, then NDA, then CIM, then management meetings with the most serious buyers.
What goes into a CIM?
- A summary of the business and why it's a good investment
- History, products or services, and customers
- How the business wins and keeps work
- The team and how the business runs day to day
- Three to five years of financial results, with normalized earnings
- Growth opportunities a new owner could pursue
- The sale process and next steps for buyers
Why does the CIM matter?
It sets the story buyers will test in due diligence. A clear, honest CIM attracts the right buyers and supports your price. A CIM that overpromises creates problems later, when buyers find the gaps and cut their offer.
Everything in the CIM should come from one confirmed set of facts, so the same question never gets two different answers.
Frequently asked questions
What does CIM stand for?
CIM stands for Confidential Information Memorandum. It is the detailed document that describes a business for sale to buyers who have signed a non-disclosure agreement.
What is the difference between a teaser and a CIM?
A teaser is a short, anonymous summary used to test buyer interest without revealing the company's name. A CIM is the full, detailed document shared only after a buyer signs a non-disclosure agreement.
Who writes the CIM?
The seller's advisor usually prepares the CIM with input from the owner, management and the company's accountant. The owner should review every fact in it, because buyers will test those facts during due diligence.
