Glossary · Deal documents
Confidential information memorandum
Also called CIM, information memorandum
Definition
A confidential information memorandum (CIM, or information memorandum) is the main sales document in an M&A process. It describes the business, its market, management, financials and the investment case in detail, and buyers use it to make an indicative offer. It goes out after an NDA, before data room access.
Where it comes up
On this site, in our guides and in the conversations we've written up.
Video · Firmex Why an organised data room protects the price in a fundraise or sale He builds the data room alongside the information memorandum or the updated projections, stages access, and checks every document for signatures before it goes up. 
Video · Datasite Why seller preparation, not financing, now sets the pace of M&A That analysis then runs through the whole marketing suite, from the teaser and information memorandum to the management presentation. 
Video · The Motley Fool Datasite's CEO on what deal data shows and where AI agents fit in M&A On the buy side, his example is mid-market private equity, which gets many teasers and CIMs. Related terms
Teaser A one or two page summary of a business for sale, often anonymous, sent to possible buyers before they sign an NDA. Indicative offer A first, non-binding price and set of terms from a buyer, used to pick who goes through to due diligence. Non-disclosure agreement A contract in which the receiving party promises to keep the information it is given confidential. Asset purchase agreement The contract for buying selected assets and liabilities of a business, instead of its shares. Change of control clause A contract term that lets the other party end or renegotiate the contract if the company is sold. Disclosure letter The seller's list of known exceptions to its warranties, which limits what the buyer can later claim for. Indemnity A promise to repay a specific loss in full, often used for known risks found in due diligence. Letter of intent A mostly non-binding document that sets out the main terms of a deal before the final contract is negotiated.