Confidential Information Memorandum

Definition

A Confidential Information Memorandum (CIM) is a detailed document prepared by a sell-side investment bank that describes a company being offered for sale. It typically includes the company's history, operations, financial performance, growth opportunities, and key risks. Access to the CIM is restricted to serious potential buyers who have signed a non-disclosure agreement.

Context

The CIM is referenced multiple times in Ep. 23. Chris Reilly highlights that attention to detail in CIM materials is a positive signal for buy-side firms — raising issues that were already disclosed in the CIM is a negative signal that bankers track (see M&A Process Dynamics). In the deal process flow, the CIM comes after the Teaser and NDA, and before management presentations and due diligence.

Related Terms

• Teaser — the shorter initial document that precedes the CIM
• Due Diligence — the deeper investigation that follows CIM review
• Sell Side — the party that prepares the CIM
• Boutique Investment Bank — typically produces the CIM for LMM deals