What document is created during the marketing phase to attract potential buyers?

During the marketing phase of a merger or acquisition, the Confidential Information Memorandum (CIM) plays a crucial role in attracting potential buyers. This document provides detailed information about the selling company, including its business model, financial performance, market position, and any growth opportunities. The CIM is designed to give prospective buyers a comprehensive overview of the company, highlighting its strengths and potential, which helps generate interest in the acquisition process.

Unlike the Non-Disclosure Agreement, which is primarily used to ensure confidentiality between the parties involved, the CIM serves a different purpose by actively marketing the company to potential buyers. The Letter of Intent, on the other hand, is typically drafted after initial interest has been established, outlining the terms under which the buyer is willing to proceed with the acquisition. Similarly, the Management Presentation is often conducted later in the process to provide in-depth insights and answers to specific questions after a buyer has expressed serious interest. Thus, the CIM is the key document created during the marketing phase to effectively attract potential buyers and provide them with the necessary information to assess the opportunity.