What a Confidential Information Memorandum Is Not?
Now that we have covered what should form a part of a CIM and what shouldn’t, it’s now super important to understand what a CIM is not.
- CIM is not a legally binding agreement/contract: A CIM is not a legally binding document. It is just a marketing document for potential investors or buyers that outlines the investment opportunities in the company. CIM is designed to make a company appear as attractive as possible. However, it should be ensured that all the information stated in CIM should be true and not misleading.
- CIM is not a pitchbook: A pitchbook is a sales document prepared by an investment bank used to help businesses and their sales teams sell products, services and even attract new clients. Pitchbook should not be mistaken for a CIM. When a corporation wants to sell their business, an investment bank will use a pitchbook, whereas CIM is used by the investment bank you hired to convince a third party to purchase your business.
- CIM is not a valuation document: When an investment bank is trying to sell a business, they try to get the maximum possible value for it. Thus, while preparing a CIM, the investment bank doesn’t include any specific information on the exact valuation of the business. This way, they can let the potential investor place a bid by themselves and obtain a maximum business valuation.
Need help writing a brilliant Confidential Information Memorandum (CIM)? OGSCapital Consultants are here to help
Not all Confidential Information Memorandum (CIM) are created equal. A poorly-written CIM can prevent you from obtaining a maximum valuation for the business that you are trying to sell, so it’s important to create one that effectively conveys the real worth of your business to potential investors.
At OGSCapital Consultants, we have the knowledge, experience and expertise to bring your vision for a successful CIM to life. Our investment banking experts have years of experience crafting brilliant CIMs that attract interested investors and provide them with vital information about your company's worth. Our success in this arena has led us to become one of the most respected firms in our industry because of our creativity, expertise, and attention to detail when it comes time to create these documents.