Answering the Question Would You Ever Need a Pitch Deck and an Information Memorandum

1. Answering the Question: Would You Ever Need a Pitch Deck and an Information Memorandum? When seeking an investor or a buyer for your business, you’ll need to have your business documents in order. What documents you need will depend on who you’re appealing to and what you’re trying to do. Two of the most popular when dealing with investors or buyers are a Pitch Deck and an Information Memorandum. Understanding these documents begins with understanding their purpose and intention. Only then can you determine if you will ever be in need of both. The Pitch Deck Defined A pitch deck is a brief presentation, typically in a slide format like PowerPoint or similar software, meant to overview a business investment or purchase opportunity. These come in all lengths, and some are more creative than others but, they tend to be very visual as well. The Information Memorandum Memoradum According to Corporate Finance Institute, “A Confidential Information Memorandum (CIM) is a document used in mergers and acquisitions to convey important information about a business that’s for sale including its operations, financial statements, management team, and other data to a prospective buyer.” Unlike a pitch deck, this document tends to more closely resemble a business plan in terms of its depth but, it can appear in either a more visual or

2. more text-based format. The Pitch Deck and Information Memorandum in Context of the Business Lifecycle Both the pitch deck and information memorandum are used in what is a commonly referred to as a pre-transaction stage of a business. Now, businesses may undergo many transactions throughout their lifecycle. For example, start-ups who go through several rounds of investments, are conducting a “transaction” every time. Another common transaction is the sale of a business. So, the information memorandum and Pitch Deck are meant to solicit those interested in making a transaction. It makes no different if that is an investment or a sale, those are both transactions that typically begin with a pre-transaction document. How Might Both Documents Be Used & Are They Used Together? Knowing which document is best and when, or if you should have both can be pretty confusing. It depends on a variety of factors. These include the size of your business, what you’re aiming to do, and your potential audience to name a few. To make it even more confusing, some people ever refer to an information memorandum as a pitch book. Don’t Go It Alone – The Power of Professionals The good news is you don’t have to figure this out on your own. In fact, in order to maximize a potential investment or purchase of your business, you shouldn’t. This is why the savviest of entrepreneurs and businesspeople rely on professionals. These professionals tend to come in two forms. First, business advisors. Advisors can help you determine who you should approach, how much you should be asking for, and how you should be asking (i.e. what type of documents are best. It will also come in the form of Professional Business Plan Writers. Often, these will be two different companies/professionals but, every now and again you find a great, highly knowledgeable, and well respected company that can handle both aspects, like . Let them be your one stop shop to determining the best course of action for your transaction and your pitch deck or information memorandum.