WHEN DO YOU SHARE CIM WITH LAWYER/ACCOUNTANT?
Hi all - I'm a first time buyer, was wondering when do you buyers usually share the CIM with their lawyers/accountant and engage them for their perspective? Pre-or-post LOI?
Thank you!
Hi all - I'm a first time buyer, was wondering when do you buyers usually share the CIM with their lawyers/accountant and engage them for their perspective? Pre-or-post LOI?
Thank you!
It's not a common practice, but I personally think more attorneys should offer a reasonable flat-free review for documents like a CIM/NDA, or whatever you want to call it. If you're working with an attorney already, propose it. If you're shopping, ask if that's an option. A CIM shouldn't take an experienced lawyer very long to read through for any wild red flags, which is what I imagine you're having a lawyer read it for in the first place. A few hundred bucks AT MOST should get the job done, and I'd imagine if you propositioned it right, a lot of attorneys would do it for cheap (or free) in hopes of getting to work the deal.
If you don't fully trust your attorney to bring a practical approach to preliminary documents like LOIs or CIMs, then ask around the M&A space to find one (commercial bankers and accountants are a good starting point - I'm more hesitant about counsel recommended by brokers).