What should an information memorandum include?

Contents of a Confidential Information Memorandum

• Executive Summary.
• Investment Thesis.
• Overview of the Market.
• Overview of the Target Company.
• Products and Services.
• Revenue Profile.
• Employee Profile.
• Customer Profile.

What is an information memorandum in M&A?

An information memorandum, sometimes also known as a sales memorandum, is a document produced prior to selling your business, and essentially functions as your opening pitch to any prospective buyers.

What is a CIM deck?

A confidential information memorandum (CIM) is a document prepared by a company in an effort to solicit indications of interest from potential buyers. 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.

What is a confidential information presentation?

Sample 2. Confidential Information Presentation means that certain presentation prepared on behalf of the Company and dated March 2017, as provided to the Purchaser, as such presentation may have been amended, modified or supplemented by the Company or on the Company’s behalf.

Who prepares an information memorandum?

the resolution professional
It is the resolution professional to prepare the information memorandum. Section 25(2)(g) of the Code provides that the resolution professional shall prepare the information memorandum in accordance with section 29.

Is a CIM a Pitchbook?

Investment banks don’t want to “set the price” at this stage of the process – they would rather let potential buyers place bids and see where they come in. Finally, a CIM is NOT a pitch book. Here’s the difference: Pitch Book: “Hey, if you hire us to sell your company, we could get a great price for you!”

How do you write a memorandum of information?

5 Tips for Writing a Kick-Ass Investment Memorandum (aka Information Memorandum)

1. Make it Easy to Understand. Clarity is key.
2. Optimise the Layout! Include a concise company and market overview.
3. Be Transparent, Outline the Risks. No one likes surprises.
4. Include the Terms of the Investment.
5. Get the Financials Right.

What should I look for when reading a CIM?

What to Look for in a CIM – Financials

• Low capex – usually less than 5% of revenues.
• Strong EBITDA margins – ~20%
• Revenue growth – CAGR of 10%+
• Sanity check of market size vs projected revenue growth.

How do you draft information memorandum?

Format

1. Letter from the Director. Summarize the business and future ambitions of the company.
2. Investment Highlights.
3. Executive Summary.
4. Company History with Milestones.
5. Expansion Plan.
6. Market Overview.
7. Key Success Factors.
8. Risks.

What should be included in a CIM?

The structure of a CIM varies by firm and group, but it usually contains these sections:

1. Overview and Key Investment Highlights.
2. Products and Services.
3. Market.
4. Sales & Marketing.
5. Management Team.
6. Financial Results and Projections.
7. Risk Factors (Sometimes omitted)
8. Appendices.

How do you draft a CIM?

What is information memorandum IBC?

An Information Memorandum is a comprehensive description of all aspects of the business and the fundraising proposal. Section 5(10) of the Insolvency and Bankruptcy Code, 2016 (‘Code’ for short) defines the expression as a memorandum prepared by resolution professional under sub-section (1) of section 29.

What are some examples of memorandum?

The definition of a memorandum is a note or reminder left for yourself, or a form of communication designed to share information. An example of memorandum is when you leave yourself a note to pick up milk. An example of a memorandum is when a boss writes out an official notice to employees informing them of new policies.

What is a memo template?

Memo Template. A memo template is also known as memorandum is used for written communication. A memo is being used at same place within same organization for communication. Written communication is always encouraged in the business world as it supports memory as information about any event or issue can be retrieved at any time from the memos.

What is the format of a Business Memo?

Business memorandum or memoranda — also called memo or memos — are specially formatted written communications within your business. A memo’s format is typically informal (but still all-business) and public. Memos typically make announcements, discuss procedures, report on company activities, and disseminate employee information.

What is confidential information memorandum?

A confidential information memorandum (CIM) is a document drafted by an M&A advisory firm or investment banker used in a. sell-side engagement to market a business to prospective buyers.