The Confidential Information Memorandum

Are you ready to sell your business? There are some strategies you should use. At the top of the list is the confidential information memorandum. This is sometimes called the offering memorandum or selling memorandum. This memorandum is an effective way to help you obtain the highest possible selling price.

The Executive Summary

The confidential information memorandum must be factual. At the same time, this memorandum allows for a bit of business promotion and selling. Include this in the executive summary part of the document. Potential buyers will want to know more about your business and why buying it would by a good decision.

The executive summary section of the memorandum goes over the highlights of your company. Outline key factors such as the description of the business, ownership and management structure, and financial highlights. Also include a general review of your company’s products and/or services. Additional points to include would be information about your market, and the reason that the business is for sale.

The executive summary is extremely important. A coherent and convincing executive summary will motivate prospective buyers to learn more. You want your executive summary to capture the attention of anyone that reads it.

Other Essential Elements

There are some elements that you must have in your memorandum. Include an overview of your company and its history; also, it’s markets and products. These are good places to begin your confidential information memorandum. Other key elements to include are customers, distribution, and the competition.

Do not overlook factors such as management, financials and growth strategies. Many prospective investors may flip to those sections first. Be sure to include any competitive advantages you may have. The more polished and professional your confidential information memorandum, the better off you’ll be.

An easy way to insure you have a quality confidential information memorandum is to work with EBIT Associates. Our experienced staff knows what information to include in your memorandum. Remember, your confidential information memorandum may be the first point of contact between you and a prospective buyer. You only get one chance to make a first impression.


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