Confidential information memorandum
The detailed document describing a business for sale, sent to qualified buyers after they sign an NDA.
Also called: CIM · Information memorandum · IM · The book
A CIM is the full picture: history, products and services, customers and concentration, staff and management, operations, market position, financial performance, adjusted earnings with the add-backs explained, and the growth opportunities a new owner could pursue. It runs from a dozen pages in a small transaction to a hundred or more in a larger one.
It exists to answer the obvious questions once, in a controlled document, rather than repeatedly and inconsistently across a dozen conversations. A good CIM makes the business easy to understand and its earnings easy to trust; it does not oversell, because every claim in it becomes something diligence will test and something the representations may eventually cover.
On Serava the equivalent step is narrower by design. Because introductions are made privately to buyers with a stated mandate rather than to a broad list, the material shared can be scoped to the specific buyer instead of packaged for the market — which is the point of running a process without a public listing.
Where sellers get caught
- Growth projections presented as expectations. If you would not underwrite them, do not publish them.
- Including customer names or identifying detail before you know who is reading.
- Contradictions between the CIM and the diligence data. Every one costs credibility.
Common questions
Do I need a CIM to sell a small business?
Not always. In a private, mandate-led process a shorter and more targeted set of materials often works better, because the buyer already has a defined thesis and specific questions.
Should the CIM name the company?
Only after an NDA is in place. The teaser that precedes it is typically anonymised, describing the business well enough to attract interest without identifying it.
Related terms
Non-disclosure agreement
The agreement a prospective buyer signs before receiving confidential information about a business for sale.
Data room
The controlled repository where diligence documents are shared with a buyer, with permissions and an access log.
Business broker
An intermediary who markets a business for sale to a pool of prospective buyers, usually for a success fee.
Due diligence
The buyer's post-LOI investigation of the business, covering financial, legal, commercial, tax, and operational matters.
Guides that use this term
Where confidential information memorandum comes up in a real sale, and what it changes.
Last reviewed 2026-08-25. General information for business owners, not legal, tax, or financial advice — terms, thresholds, and tax treatment vary by jurisdiction and by deal.