Confidential Information Memorandum (CIM)
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Quick Answer
A confidential information memorandum is the post-NDA document that gives a buyer enough information to price the business.
What it is
It sets out the business model, the market, the customer base, the operating history and the financial picture, usually alongside a management-adjusted EBITDA bridge and often a sell-side quality of earnings report. The banker drafts it and the seller approves it. In the sequence it is the gate between an anonymous teaser and a priced indication of interest.
Operational context
What good looks like
Why It Matters
The CIM is the document a first-round bid is built on, so every number in it is a number the buyer will later test in confirmatory diligence. The gap between the CIM's adjusted EBITDA and the one a buy-side quality of earnings will accept is where most repricing originates.
Common mistakes
Term Family
Related concepts
Frequently Asked Questions
What is Confidential Information Memorandum (CIM) in venture capital?
It sets out the business model, the market, the customer base, the operating history and the financial picture, usually alongside a management-adjusted EBITDA bridge and often a sell-side quality of earnings report. The banker drafts it and the seller approves it.
Why is Confidential Information Memorandum (CIM) important for startups?
Understanding Confidential Information Memorandum (CIM) is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
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