Combining a Pitch Deck and Information Memorandum to Strengthen the Business Case

1. Combining a Pitch Deck and Information Memorandum to Strengthen the Business Case It is common knowledge in the world of mergers and acquisitions that an information memorandum is produced to help prepare a business for sale. This document, sometimes referred to as a confidential Information Memorandum (CIM) or sales memorandum, is the key to giving all the information about a business’s past performance, current stance, and future outlook. In addition to this, a Pitch Deck may also be used. Together, these documents can be a powerful combination to help gain interest in the business that is up for sale. Understanding the Information Memorandum An information memorandum is to a business sale what a business plan is to a startup. In fact, the two documents are quite similar, it is their purpose that differs. In a business plan, the owners of the business intend to continue their ownership and involvement and are typically looking for outside

2. investors or lenders to infuse capital. When it comes to an information memorandum the purpose is typically to sell the business, whether in full or a majority share. It will usually result in someone else running the business. Despite the difference in the intended purpose, the documents themselves are quite similar. They both have the same fundamental sections: · Executive Summary – A brief overview of the entire business · Products & Services – A description of what the company offers and sells · Market Overview – A detailed review of the overall market, target markets, as well as competitors · Sales & Marketing Plan – How the business does or will market and sell its products to the end consumer · Management Team – Insight into the key players of the businesses as well as a description of the overall structure of management · Financials – Historical information (when available) as well as projections of future sales and expenses typically presented in the format of standard financial documents Understanding the Pitch Deck A pitch deck is a very short, abbreviated, visually appealing presentation, typically presented in Power Point or another slide show program. You may have a pitch deck for a business plan or an Information Memorandum. It will contain far less detail but, will give a general overview, typically with a great deal of visuals, to get people interested in reading the full document. The pitch deck is essentially a teaser to draw potential investors or buyers to review and consider the business.

3. The Winning Combination The pitch deck and the information memorandum both play an important part in the sale of a business. While the information memorandum will provide the details, the pitch deck is all about attracting interest. The same information is presented in both documents but, what will differ is the depth of that information. Investors and those that buy businesses, see dozens of pitch decks and information memorandums in a regular week. It is often hard to make an information memorandum stand out given the traditional format it is expected to follow and the length of the overall document. The Pitch Deck is not only short but, also easy to look at as it is meant to be captivating. It also tends to follow a less conventional structure making it the perfect document to garner interest. The idea is the pitch deck will encourage an investor or buyer to look into the whole plan and decide to purchase or invest in the business. This may be accomplished easier with both documents than with just the memorandum.