Mainly for traditional searchers but anyone who has seen a number of deals and done DD behind them....what percent of CIMs/OMs have you seen that after DD actually prove to be accurate? Just kind of trying to gauge this industry trend
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So if you mean to ask whether the EBITDA in the CIM ties to whatever the base will be at closing, then very few. If you mean do they accurately represent the core focus of the business, the material risks and opportunities for the investment, and other strategic considerations, it's more likely to be a non-zero number. But ultimately you should never really be exclusively relying on the CIM, as almost any you see will come with ample disclaimers and indemnifications from whoever sends it disavowing any claims as to accuracy. The larger the deal, the more sophisticated the parties involved, etc., the closer the CIM will likely to be to what the key levels are at closing. If you're attempting to avoid wasted due diligence costs, I encourage you to look at the process more holistically and find corroborating and alternative data points to inform your decision as to whether to move forward vs just going by CIM alone.