Short CIMs

by a searcher from Harvard University - Harvard Business School

6 days ago

Hi, I have a question on how to approach the more concise CIMs. 

Sometimes I get really good, well laid-out CIMs that have a good amount of information to evaluate. Other times, I get some financials and a tax return. 

My question is, for the CIMs that are mostly financials - if I'm still interested in the business after reviewing them - is it appropriate to send a (or many) laundry list(s) of questions that would then add up to what a complete CIM would be, pre-LoI; or do you just let that CIM go and move on? 

For clarification, I'm not asking if I can ask them for detailed client lists, what systems they use etc. pre-LoI, but rather things like how many employees they have, percentage split of products/services, how they get new business etc. --- Things that I have seen/received in CIMs without having to ask and that I would need to make an informed LoI decision. 

Thanks!

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searcher from Harvard University - Harvard Business School

Thank you for your comments, everyone. These are very helpful. As an added context, I'm asking about the lower middle market - so not huge deals, but also not main street.

I guess the main thing I'm trying to get to is, in all your collective experience, if you see a CIM like that, is it worth the time pushing on, or is it indicative of how the information is going to flow in general (as ^Searchfunder member‌ mentioned).

Another way of asking probably is: when you've seen initial CIMs like that, have you typically been successful in setting up a good information flow or should one expect it to be like pulling teeth to get the information you need?

5 hours ago | like reply | 0 likes

intermediary from University of Colorado at Boulder

These are always tough ones. I try to provide as much information as I can in the CIM to minimize the back and forth. However, some buyers won't provide a lot of information and so our hands are tied as advisors / brokers. So when you dive into a business with a light CIM, it may indicate a seller who is pretty tight to the vest with information.

9 hours ago | like reply | 0 likes

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