Information Memorandum in M&A: Purpose and Contents

25 April 2022, Frankfurt am Main

An information memorandum, often abbreviated to IM, presents potential buyers with detailed and decision-relevant information about a target company. It is one of the central documents in a structured M&A sale process.

What does an information memorandum contain?

The document provides qualified buyers with a structured account of the company, including its business model, market position, products and services, customers, organisation, financial performance and future prospects. Sensitive information is shared only after a non-disclosure agreement has been signed.

Why is the information memorandum important?

On the basis of the information memorandum, a prospective buyer decides whether to submit an indicative, non-binding offer and proceed to due diligence. A clear and credible presentation helps buyers understand the investment opportunity, compare it with their acquisition criteria and prepare a substantiated initial valuation.

Its role in a structured company sale

The information memorandum follows the initial anonymous teaser and confidentiality agreement. It creates a consistent information basis for selected buyers and supports a fair, competitive process while protecting sensitive company data. Learn more about our structured company sale process.

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