Confidential Information Memorandum (CIM)

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

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.