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Technological Advancement of the Confidential Information Memorandum

By Divestopedia Team
Published: September 4, 2017 | Last updated: March 21, 2024
Key Takeaways

The internet and online networks are changing how middle market M&A is conducted. We have developed a technology that is contributing to that change.

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At Divestopedia, we are privileged to explore the possibilities that technology can bring to improving mid-market deal making. Over the last five years, we have learned that the internet and online social networks can significantly increase the chances of successfully completing a transaction. Online networks can be used in the marketing stage to more efficiently connect sellers with the best prospective buyers.

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Many mid-market M&A firms have yet to embrace this advancement, but we are proud to say that Divestopedia has been at the forefront of creating new online methods to improve the M&A sale process. Like the Starship Enterprise, we strive to boldly go where no one has gone before (cheesy, no doubt, but we are Trekkies at heart).

The next frontier that Divestopedia is currently exploring is to transform the Confidential Information Memorandum (CIM). It is traditional practice for M&A firms to use static documents (Word or PowerPoint) to prepare the CIM. Divestopedia, on the other hand, is working with M&A firms to create custom web-based CIMs that allow for interactive and media-rich content. The use of content such as HD video, infographics and interactive maps allows M&A firms to communicate a better story for their clients. These online CIMs elicits stronger user engagement and understanding of the business’ strengths from prospective buyers.

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Here is a example of our innovative, web-based CIMs:

M&A Firm Branding and Secure Login

Confidentiality is maintained through a secured user login on a platform that is fully branded with the M&A firm’s logo.

How Technology is Changing the Deal-Making Process

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Innovative Design

Modern and simple design conveys professionalism.

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Visual Processing

Studies show that visual information is processed quicker and retained in memory longer than other delivery methods. The use of high definition video leaves a lasting impression for prospective buyers.

Interactive Content

With a web-based format, interactive content such as maps can be inserted into the CIM.

Highlighting Attributes

Innovative ways of highlighting important company attributes. In this case, a gallery of images for the company’s specialized equipment.

Ease of Navigation

A table of contents makes it easy for prospective buyers to navigate through information quickly.

Downloadable Content

Downloadable content allows prospective buyers to obtain the data needed to preform their analysis of the target.

Data Analytics

In addition to a more dynamic presentation, web-based CIMs allows for the collection of information through data analytics. This provides an advantage during the negotiation stage and early identification of potential areas of interest or concern for prospective buyers.

The Next Advancement in Deal Making is Here

Divestopedia is leading the advancement of the deal making process with the development of the online CIM. We work closely with M&A firms to develop their CIMs in this format. Contact us at [email protected] if you would like to discuss how we can work with your team to improve your deal making process.

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Written by Divestopedia Team

Divestopedia Team
Divestopedia is a resource for entrepreneurs who want to sell their business for the best price and terms. Whether you are thinking of selling, have started a sales process, or are post-deal, we aim to arm you with the knowledge required to maximize value and limit your downside risk.

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