How do you actually evaluate a CIM before signing an LOI?

profile

June 01, 2026

by a searcher from Carnegie Mellon University - Tepper School of Business in Pittsburgh, PA, USA

Honest question for anyone who has signed more than one LOI.When you received the CIM, what was your actual evaluation process before deciding to pursue it?Not what the process should be. What you actually did.Did you have a framework? Build a spreadsheet? Rely mostly on your attorney? Go on gut feel and validate later?I have spent the last year talking to buyers about this and the range of answers genuinely surprises me. Curious what this community's experience actually looks like.
0
3
71
Replies
3
commentor profile
Reply by a searcher
from Marymount University in Charlotte, NC, USA
One thing that is least talked about here seems to be is whether you are buying a cash flowing asset (a passive investment, spending 10 hrs or less a week) or buying a business that you will actively run for 40 hrs a week. Both these seem to be talked in same vein but they are vastly different. Once you know which segment you are in, then you have a series of points.
commentor profile
Reply by a searcher
from Howard Payne University in Austin, TX, USA
Honestly, a CIM is a marketing document. You need to see some basic financials before signing an LOI. I always ask for 3 years P&L, 3 years balance sheet, 3 years revenue by customer (anonymized), and an employee roster (also anonymized) with tenure and salaries. Once I have those, I use a custom tool I purpose-built that gives me the go/no-go.
commentor profile
+1 more reply.
Join the discussion