Drafting it early will enable your future euphoric exit
When the day arrives that you desire to sell your business, you will need to assemble various pieces of information that will be used to attract potential buyers. One central piece of information you’ll need is referred to under various names such as a Confidential Information Memorandum (CIM), Management Presentation or Pitch Deck.
The important purpose for this document is that it’s your opportunity to tell your company story, your narrative about what your company mission is, why it’s special, how it’s been performing and forecasting its future potential and overall how it’s a great business for an acquirer to benefit from owning. It’s designed to help you excite an acquirer about what it could mean for them going forward.
In working with our clients, we share samples of these CIM’s/Management Presentations/Pitch Decks and we do this at least a year (more often two years) prior to beginning the exit process. There are multiple benefits for reviewing, even drafting, your document at least a year prior to exiting:
- Will help you begin to see what types of data you’ll need for populating the document and give you time to pull it together if not already readily available.
- Help you begin to draft your narrative about why your company is special and in doing this, it might identify gaps still present that need to be addressed prior to attempting to attract acquirers.
- Will help ensure you are tracking and ready to share key metrics about a company such as yours that a typical acquirer will expect you to be able to present to them. Having required metrics and attractive performance will go a long way in attracting an acquirer to pay a premium value.
- Will help facilitate very healthy and strategic dialog and thinking about your company that will have near term benefit and will also have benefit when you decide it’s truly time to begin the exit process.
Call us (949.874.0787) to schedule a time to show you some sample documents. Reviewing these years ahead of your exit could be very enabling to achieving your future euphoric exit event.
