Confidential Information Memorandum (CIM)

The CIM is the main marketing document in a sale process. It provides enough information for buyers to understand the business and submit an initial, non-binding offer.

A typical CIM covers the company's history, products and services, markets and competitive position, customers and suppliers, operations, management team, strategy and growth opportunities, and historical and projected financial statements. It often highlights the investment case, explaining why the business is attractive.

For example, a CIM for a software company might describe its products, customer base, recurring revenue, retention rates, growth plans and five years of financial forecasts.

Because it is written by the seller's side, the CIM presents the business favourably. Buyers use it as a starting point but verify the information through due diligence later in the process. The CIM is also sometimes called an information memorandum or offering memorandum.