The memorandum is written for one reader: the person on the buyer's side who has to justify making an offer. Knowing who that is, and what they will be asked by their own committee, is what separates a document that produces offers from one that produces questions.
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Who reads it
At a fund, an associate who will rebuild your earnings in a model and then defend the case to a partner. At a strategic acquirer, a corporate development manager who has to show a business case internally. Neither is your customer and neither knows your trade as well as you do, so the document has to explain rather than assume.
What they check first
The adjusted earnings and every adjustment behind it. Revenue concentration by customer. How much of the business depends on the owner. Growth, and whether it is price or volume. Then the risks you have named and the ones you have not, because the second list is what their diligence budget is for.
What makes a good one
Specifics rather than adjectives, a market section that is short and about your market rather than the world, adjustments each with a stated basis, and an honest paragraph on risks. Naming a problem yourself costs a small discount; having it found costs trust in everything else you said.
Questions people ask about cim mergers and acquisitions
How long should a CIM be?
Twenty five to fifty pages is typical. Longer usually means padding, which the reader will notice.
Should I include forecasts?
A forecast clearly labeled as such, with assumptions, is fine. Presenting a forecast as a record is the fastest way to lose credibility in diligence.
Who writes it?
Your adviser from your information, with you reviewing every number. If you have no adviser, a shorter information document written by you does the same job.