ASE Take Off 4
Week ending Friday June 17th, 2022
Download your CIM Template:
Confidential Memorandum Template.docx
A Confidential Information Memorandum (CIM) is used to inform prospective buyers or lenders if you're looking for a line of credit or working capital for your business.
Some business brokers and M&A advisors will charge you $5k to put this together!
I know, I know I was thinking the same thing.
This Forbes article, The Business For Sale Marketplace -- Why 90% Of Listings Never Sell, explains some of the pitfalls of working with brokers and intermediaries.
Having LOI'd on a few broker deals myself, here is my experience with brokers and intermediaries:
They bottleneck all communications.
They try to get the seller to sell for as much as possible to boost their commission and not to close a transaction.
They limit the structure of the final deal if it lowers their commission.
But don't worry, you're now part of the ASE Fleet, a global consortium of investors, strategics, finders, and entrepreneurs just like you.
A finder is like a broker but gets paid on behalf of the investor/buyer. In contrast, a broker gets paid the person selling their business.
Finders also won't lock you into an exclusivity agreement like a broker would. So you can work with as many finders as you want or need to.
P.S. We're actively looking to invest in companies. Introductions leading to a successful transaction can earn you a finder's fee if the deal closes!