How to write an information memorandum (IM / CIM)
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Short answer
An information memorandum (IM, or CIM in the US) is the document a sell-side advisor shares with prospective buyers after they sign an NDA. A good IM tells a clear equity story, backs every claim and figure with a source, and answers the questions a buyer will ask before they ask them. It usually covers the executive summary and investment highlights, the business, market, customers, operations, management, financials and the transaction.
What an IM is for
An IM gives prospective buyers enough understanding of the business to submit an indicative offer. It is a marketing document, but buyers will test every statement in due diligence, so accuracy matters as much as the story.
The standard sections
| Section | What it covers |
|---|---|
| Executive summary | The company, the opportunity and the transaction in a few pages |
| Investment highlights | The equity story: why this business is attractive to a buyer |
| Business overview | History, products and services, business model |
| Market | Market size and dynamics, competitive position |
| Customers and commercial | Customer base, contracts, sales channels |
| Operations | Locations, processes, suppliers, IT |
| People and management | Organisation, management team, key people |
| Financials | Historical results, current trading, forecasts and key adjustments |
| Transaction | The proposed transaction and the process and timetable for buyers |
| Appendices | Supporting detail and definitions |
How to write it, step by step
- Collect and classify the client materials. Financials, management documents, contracts and prior memos.
- Build one source of truth. Structure the facts and figures in one place so every section draws on the same numbers.
- Write the equity story first. Agree the investment highlights with the partners before drafting the detail.
- Draft each section in your firm's template. Use your house style, so the IM looks and reads like your firm's work.
- Verify every figure. Link each number back to its source document and reconcile across sections.
- Review and sign off. Partners shape the final story; the deal team owns the document.
Checklist before the IM goes to buyers
- Every figure traceable to a source document, and consistent across sections
- Financial definitions and adjustments explained
- Nothing included that the client has not approved for release
- Confidentiality notice and disclaimer in place
- Consistent with the teaser buyers have already seen
- Formatted in your firm's template, with PDF export checked
Where AI helps
AI is most useful in steps 2, 4 and 5: structuring the client's materials, drafting sections in the firm's template, and tracing figures to their sources. Mindro builds a digital twin of the target from thousands of data points in the client's materials and drafts the IM in your firm's own template, in PowerPoint. When the client materials contain enough data, Mindro produces a strong first draft of the IM within the first day after they arrive. The partners and deal team still own the story and the final document. How Mindro creates an IM
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