What Is a CIM and Why It Matters When Selling Your Business
Thinking about selling your business? One of the most important tools in that process is the CIM—the Confidential Information Memorandum.
In this video, Kirk Michie breaks down what a CIM is, why it matters, and how it helps you tell the story of your business to serious buyers. From your mission and milestones to growth opportunities and financials, the CIM sets the tone for the deal—and helps you stay in control of the narrative. If you’re preparing for a sale or just getting educated, this is one part of the process you can’t afford to miss.
If you’re thinking about selling your business, there’s a document you need to know about. It’s called a Confidential Information Memorandum, or CIM.
Also known as a pitch deck or company presentation, the CIM is a core part of the sale process. It’s how you tell the story of your business to serious buyers—those who have already signed a non-disclosure agreement (NDA).
Let’s break down what a CIM is, what goes in it, and why it matters.
What Is a CIM?
A CIM is a document that gives potential buyers a clear picture of your business. It includes what your company does, how it operates, and where it’s headed. The goal is to show why your business is valuable and how a buyer could grow it even more.
Buyers use the CIM to decide if they want to move forward with the deal. It gives them a snapshot of your company before they dig deeper during due diligence.
What Should a CIM Include?
Most CIMs follow a simple structure. Here are the key parts:
Business overview: This includes a short description of your company, your website, and possibly a mission statement. Think of this as the “about us” page.
Timeline: This shows the history of your business from launch to today. Buyers want to see how you’ve grown and where you’re going.
Products and services: This section outlines what you sell and how it generates revenue. It should help buyers understand the core of your business.
Operations and people: Explain how the business runs and who’s in charge. You can include an org chart, but be cautious about naming key staff unless you’ve protected yourself with a non-circumvention agreement.
Growth opportunities: Show where the business could go next. Are you entering new markets? Launching new products? Buyers want to see the upside.
Financials: This usually means your trailing 12-month EBITDA, a current balance sheet, and sometimes a forecast. These numbers help buyers see the financial health and potential of your company.
Contact info: The last page should make it easy for a buyer to follow up with you or your advisor.
Why the CIM Matters
A well-prepared CIM is more than just a presentation. It’s a key part of the sales process.
It helps keep your story clear and consistent. It gives buyers a takeaway they can review after meetings. And it shows that you’re serious and well-prepared.
Yes, putting together a CIM takes work. But it can also take pressure off you. You don’t have to remember every detail or repeat the same story over and over. The CIM does that for you.
More important, it helps shape how buyers see your business. That’s a big deal when millions of dollars may be on the line.
Final Thought
Selling a business is about more than numbers. It’s about presenting your company in the right way, to the right buyers, at the right time.
The CIM helps you do that. It tells your story, highlights your value, and opens the door to serious offers.
Want to learn more about preparing your business for a sale? Visit Candor-Advisors.com for expert insights and resources.
