What is an information memorandum?
Short Answer
An information memorandum is the detailed document a seller's adviser prepares to market a business to buyers under NDA — financials, customers, team, growth and the assets behind the price.
Full Explanation
An information memorandum, or IM, is the document that presents your business to serious buyers.
It follows the short, anonymous teaser and is released only to buyers who have signed a non-disclosure agreement. Where the teaser tests interest, the IM makes the case: it sets out the history, products and services, customers and contracts, management team, financial performance and, importantly, the growth a buyer could pursue. A strong IM does more than report the numbers — it evidences the intangible assets, from brand and customer relationships to proprietary technology and processes, that justify the multiple you are asking for.
Because a buyer forms their first serious view of the business here, the IM is where the work of documenting hidden value pays off. A thin IM invites a low offer; a well-evidenced one supports a competitive process and a stronger price. In the UK, information memoranda are prepared by corporate finance advisers or brokers depending on deal size.
See how to find a buyer for your business and see Opagio Intangibles in action to build the intangible-asset evidence your IM needs.
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