A CIM in mergers and acquisitions is the document that carries a process from interest to an indicative offer, and most published examples are either heavily redacted or from transactions far larger than the reader's. What is transferable is the shape: which sections, what each has to answer, and where a buyer's analyst gets stuck. This page walks the nine sections of the CIM shape this site uses throughout.
Summary, market and offering
Three or four pages that let a reader decide whether to continue, then a market section that describes the space this company competes in rather than the largest space it could plausibly claim. Overstating the market is the most common early error and it makes everything after it read as advocacy.
Customers, which is where analysts go first
Concentration, contract terms, renewal behaviour and churn. It is uncomfortable to present and it is the first thing any buyer models, so under-playing it buys three weeks and loses more than that in week four of diligence when the real numbers arrive.
Operations, people and financials
How the thing is actually made or delivered, who does it, and three years of numbers with the adjustments identified rather than buried. An adjustment presented openly is a negotiation; an adjustment discovered is a credibility problem that costs more than the adjustment was worth.
Projections and process, and what the whole thing costs
A forecast with its assumptions stated, and a clear description of how the process will run and by when. Producing all nine sections is 121.2 hours and $11,514 on this site's arithmetic, which is the number to have in mind before adding anything.
Questions people ask about cim mergers and acquisitions
How many sections should an M&A CIM have?
Nine is a common shape: summary, market, products, customers, operations, people, financials, projections and process.
What do buyers read first?
Customers. Concentration and contract terms are the first thing any analyst models, which is why under-playing them fails in week four.
Should adjustments be shown?
Yes, identified rather than buried. An adjustment discovered in diligence costs more credibility than the adjustment itself was worth.