Confidential Information Memorandum



I was once told by a boss many years ago “A good book isn’t going to sell a poor company”. What he meant was for me to wrap it up and get it to the client, we’ve got better things to do. The problem was then, and remains every single day with every single company that the opposite is also true: “A poor book will ruin the opportunity to sell a good company”.

So I offer this piece of advice for every business owner contemplating a sale: Be absolutely certain your “Confidential Information Memorandum”, “CIM” or “book” is written, stylized and illustrated to the highest standard. Prospective buyers demand it. They don’t want fluff, but facts. They don’t want your view of the “pro forma” business you would prefer to sell than the reality that is always revealed. They want to understand how you built the business you would like to sell and how it should fare into the future under new ownership. Your book is your company’s biography and road map to the future.

Here’s what your CIM might look like:


How do you know you’ve achieved this? At the very least start with a modern template that sets up the author for success. Or, have ALIGNMT prepare it for you. Remember, “A poor book will ruin the opportunity to sell a good company”.

One of the keys to a well written CIM is the style used to narrate the relationship between the practical elements of the objectives and operations, with the financial statements. This will be the foundation of how buyers approach valuation. Get credit for the value you’ve built and you’re on your way to a deal.

ALIGNMT’s Confidential Information Memorandum Template helps you hit key notes to open the dialog with prospective buyers by helping you cover:

  1. Executive Summary
    1. Business Overview
    2. Business Concept
    3. Market Description
    4. Value Proposition or Competitive Advantage
    5. Key Success Factors
    6. Financial Snapshot
  2. The Company
    1. The Business (including history)
    2. Product Overview
    3. Markets & Customers
    4. Industry Trends
    5. Key Personnel & Human Capital Needs
    6. Organization Chart
  3. Marketing Plan
    1. Products
    2. Market Analysis
    3. Competitive Analysis
    4. Pricing Scheme
    5. Sales Volume Potential
    6. Marketing Strategies
  4. Operating Plan
    1. Implementation Plan
    2. Supply Chain Management
    3. Production Plan
    4. Customer Service Plan
    5. Organization Chart
    6. Facilities Requirements
  5. Financial Plan
    1. Cash Flow Projections
    2. Financial Statements
    3. Break-even Analysis
    4. Financial Projection Support


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