This article is designed to assist company owners in understanding what is involved in preparing an Information Memorandum (IM), during the process of selling a company.
It deals with four questions:
• First, what is an IM?
• Second, why prepare an IM?
• Third, how should a company go about preparing an IM?
• And fourth, how is an IM likely to be used by investors?
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In conclusion, a high-quality IM is critical when selling a company: in the same way as a CV may go through many drafts in order to present the candidate in the best possible light, so too, an investment of time in producing a quality IM pays off. You do not get a second chance to make a first impression.