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Alleviating the Confidential Information Memorandum Bottleneck in Your Firm

Updated 26.03.24 4 minutes read
AdvisoryCommercialIndustry InsightsJoorney Updates

When looking to sell a business, the Confidential Information Memorandum (CIM), also called the information memorandum or sales memorandum, can be one of the most important documents that will help determine if the business sells.

However, whether you are a Mergers and Acquisitions (M&A) advisory firm, a Business Broker, or an Investment Banker, handling the creation of information memorandums in-house may be creating an unnecessary bottleneck in your business. Outsourcing this vital task to trusted professionals can alleviate this bottleneck and provide additional advantages.

Advantages of Outsourcing

Time is money and researching and drafting a concise and compelling information memorandum takes time, often weeks, to create. As an M&A advisor or other professional focused on selling businesses, outsourcing the creation of the CIM will free up more time to focus on originating, running, and closing more deals.

Further, it is likely that outside professionals who focus on creating CIMs and business plans will be able to have a draft ready in less time than when it is crafted in-house. This is especially true if you go with a firm that will be supported by a team as opposed to an individual. This means you will be able to start soliciting potential buyers even sooner.

Why to Hire Business Plan Professionals

Ultimately, an information memorandum is a business plan by a different name. Although there are some differences, they are far outweighed by the similarities. The structure, most of the sections, and the main purpose – to generate interest in the business – are the same. This means that those that typically focus on business plans are perfectly suited to draft a CIM.

Professional business plan consultants and writers have vast experience quickly making sense of a business, identifying the most exciting and solid points, and packaging it in a way that makes it appealing to others. They are always cognizant of the intended audience and they will approach an information memorandum in much the same way, ensuring it is an enticing sales and marketing document.

Naturally, as a firm, broker, or banker in charge of the deal, you will have a vision of how the CIM is structured, what information is included, and how that information is presented. However, outsourcing this function to other business professionals, especially those that look at business plans daily, will bring a further objective view. Another set of objective eyes may see notable highlights and sale points that you had not previously considered, which will aid in strengthening the information memorandum and perceived business value overall.

As evidenced, outsourcing your CIM can have many positive impacts on your business. If you are an M&A firm or other professional who deals with the sale of businesses, consider partnering with Joorney for all your information memorandum needs. Joorney Advisory consultants are a team of professionals who have experience with capital raising and the buy-and-sell side of M&A as well as vast experience working directly with clients and creating effective business plans and CIMs to present to potential buyers and investors. Contact us today to further discuss our partnership opportunities.