{
  "title": "What is a CIM? Confidential information memorandum explained",
  "url": "https://acquisitions.com/blog/what-is-a-cim/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-10-23",
  "updated": "2026-10-23",
  "section": "Glossary",
  "keyword": "Confidential information memorandum (CIM)",
  "short_answer": "A confidential information memorandum (CIM) is the detailed sales document a broker or seller sends a buyer after the NDA is signed. It describes the business, its history, customers, staff, financials and asking terms. It is a marketing document written to sell, so every number in it should be checked against tax returns and bank statements.",
  "facts": {
    "Summary and asking price": [
      "$1,200,000 for a 20-year-old HVAC business, owner retiring",
      "Comparable sales; your own valuation"
    ],
    "History and overview": [
      "Founded 2006, two trucks to seven, 1,800 active customers",
      "Customer list with last service date"
    ],
    "Products and services": [
      "60% service and repair, 40% installs",
      "Invoice export from the accounting system"
    ],
    "Customers": [
      "No customer over 5% of revenue",
      "Sales by customer for three years"
    ],
    "Staff": [
      "Seven technicians, one office manager, owner sells",
      "Payroll records; W-2s and 1099s"
    ],
    "Financial summary": [
      "Revenue $2,100,000, SDE $410,000",
      "Three years of tax returns and the P&L"
    ],
    "Add-backs": [
      "Owner's salary $120,000, personal truck $14,000, one-off legal $9,000",
      "Bank statements and the general ledger"
    ],
    "Balance sheet items": [
      "$85,000 of receivables, $40,000 of parts stock",
      "Aged receivables report; a stock count"
    ],
    "Assets included": [
      "Seven vehicles, tools, software, phone number, website",
      "Titles, leases, equipment list with serial numbers"
    ],
    "Growth story": [
      "\"Add a second office and double revenue\"",
      "Treat as opinion; price the business as it is"
    ]
  },
  "sources": [
    "https://www.investopedia.com/terms/o/offeringmemorandum.asp",
    "https://www.sba.gov/funding-programs/loans/7a-loans"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}