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Information Memorandum (IM)

Private Equity glossary · Private Equity Fundamentals

Definition

The primary marketing document prepared by a sell-side advisor for a transaction process.

Information Memorandum (IM) in plain English

When a company (or its bankers) wants to sell the business, they write up a detailed booklet describing it — the financials, the strategy, why it's a great buy — and send it to potential buyers. That booklet is the Information Memorandum. It's essentially the ultimate sales brochure, the way a house listing shows off the kitchen and hides nothing you'd notice on a walkthrough, except here it's for a whole company. Buyers read it to decide whether to bid and roughly how much.

Also called: IM

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