In the past 200 Deal Notes®, we have written about the “CIM” a number of times. As you will recall, CIM is industry jargon for Confidential Information Memorandum, which is sometimes referred to as a Confidential Information Presentation (“CIP”). In today’s Deal Note® we will address a new topic – the fact that a CIM is a disclosure document, hence the title “the truth, the whole truth, and nothing but the truth”.
While a well written CIM should be written in a manner that presents your company in the most favorable light, it is critically important that you remember that the buyers view the CIM as a disclosure document, not a piece of marketing literature.
As discussed in Deal Note® 25, dated July 19, 2022, after you enter into a Letter of Intent, the buyer will initiate exhaustive due diligence. During this process, a substantial amount of their focus will be testing the validity of statements made in the CIM.
When you work with your M&A Bankers to craft the CIM, remember that buyers view these documents more like disclosure statements than market materials. While there is nothing wrong with optimism and a positive outlook for the future, don’t go to market with a CIM that cannot withstand the rigors of buyer due diligence.
Have a great day and a great 2026 everyone,
William Alderman
Founding Partner
