The full written case for buying a company — what it does, how it makes money, its customers, its financials and its risks. It goes to buyers who have signed an NDA, and it is the document most first offers are based on.
Why it matters
Once a buyer has signed an NDA, they need something more substantial than a
teaser to actually decide whether to make an offer. The CIM — Confidential
Information Memorandum — is that document: the seller's full written case for the business,
covering what it does, how it makes money, who its customers are, and what its financials look
like. Most early offers, including a first IOI, are based on nothing more than
this document and a few follow-up questions.
For a founder, writing (or approving) the CIM is the first time the story of the company has to
survive real scrutiny rather than a one-page pitch. For a buyer, it is the point at which "this
looks interesting" turns into "this is worth putting a number on."
How it works
A CIM typically covers the company's history and structure, its product or service, its market
and competitive position, its customers and how concentrated or diversified they are, its
financial history and any projections, its team, and a summary of the key risks a buyer should
know about upfront rather than discover later. Advisers involved in a sale usually draft it, with
management providing and checking the substance, because an inaccurate CIM creates real legal
exposure once a deal is signed.
The CIM sits between the teaser and full due diligence: more detail
than the former, but still a curated document rather than raw source material. Verifying the
claims it makes — the actual contracts, the actual accounts — is what diligence and the data room
are for.
On GetDeal
A GetDeal listing plays the CIM's role once the NDA is signed: the anonymized
summary a browsing investor first sees is replaced by the full profile — company name, financials,
documents — in the same listing rather than a separately emailed memorandum, so the fuller
picture and the NDA gate that unlocks it live in one place.
Raise or sell your AI startupthe Playbook — the deal stages, what each one unlocks, and which agreement is signed when
Questions people ask
- Who is a CIM shown to?
- Only buyers who have signed a non-disclosure agreement, since it contains real detail about the company’s financials, customers and operations that would be damaging if it reached a competitor or the wider market. It is never sent as freely as the anonymous teaser that usually precedes it.
- How long is a typical CIM?
- It varies with the complexity of the business, but most run to a substantial written document rather than a short summary, often organized into sections covering the company, its market, its financial history, and its risks. The goal is enough depth that a buyer can form a real view without yet needing full diligence.
- Can a buyer rely on the numbers in a CIM?
- They can use it to form an initial view and make an early offer, but a serious buyer will verify everything material during due diligence before signing a binding agreement. The CIM is the seller’s own account of the business, not an independently checked one, which is exactly why diligence exists afterwards.
See also
More in Deal process
- Closing — The moment ownership actually changes hands and the money moves.
- Data room — The controlled place where a seller puts the documents a buyer needs — contracts, accounts, cap table, IP assignments.
- Disclosure schedule — The seller’s list of exceptions to the promises made in the contract.
- Due diligence — The buyer checking that the company is what it was said to be — financial, legal, technical, commercial.
- Exclusivity — A promise by the seller to stop talking to other buyers for an agreed period, so the one buyer can spend money on diligence without being outbid mid-way.
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Updated 2026-09-09