How To Analyze M&A Broker CIMs for Business Buyers

How do you analyze an M&A broker CIM effectively when buying a business? What are the key sections to analyze? What are the key questions to ask? How do you determine if this is a good business to buy?
In this informative video series, we delve into Confidential Information Memorandums (CIMs) and provide valuable insights for business buyers looking to make informed decisions. From decoding key financial data to understanding critical business insights, we guide you through the process of analyzing CIMs with precision and expertise. Join us as we unlock the secrets behind these confidential documents and empower you to navigate the complexities of business acquisitions with confidence. This is the part 1 video. See below the key sections covered in this in-depth three-part video series:
Part 1: Financial Section Analysis - This Is The Video You Are Watching Now!
• How to analyze the income statement and identify key trends?
• How to analyze the balance sheet and working capital accounts?
• How to confirm the accuracy of the adjusted EBITDA?
• What are common M&A broker mistakes when preparing the EBITDA schedule?
• How to analyze the equipment list and determine required CAPEX for the business?
Part 2: Operations & Customers/Suppliers Overview
• How do you analyze the quality and sustainability of a business’ customer base?
• How do you deal with key customer or supplier concentration in a business acquisition?
• What are the key risks to consider when analyzing the supplier section?
• How do you determine the strength and weaknesses of a business?
Part 3: Real Estate, IT, Legal, Employee and Other Considerations
• How do you find the “juicy stuff” outside of the story written in the CIM? Where else can you look online to find more information about the company and the seller?
• How to analyze the current owner and management team in place? How do you determine the relative transition risk of the company based on the employee org chart?
• How do you determine the relative strength of the IT systems in place that can support your overall due diligence?
• What are the standard legal ownership structures for sellers and what are the common mistakes that sellers make that can cost them a lot of tax?
• How do you navigate a multi-shareholder ownership structure? What are the inherit risks of silent shareholders?
If you are interested in taking a deeper dive into a company you are looking to buy, you can book a 1-hour session with me! On this call, I can provide a more detailed analysis on the target company and provide suggestions on valuation, purchase price structure and how to position your bid in an auction scenario where you are dealing with a sell-side M&A broker. Click the link below to learn more:
calendly.com/r...
Roblee Capital is a Toronto-based M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buy-side M&A services. We work with Canadian-based business owners looking to sell their lower mid-market business. Check out our website at;
www.robleecapi...

[@mattheusmegdom]

Great content as usual !

[@financekid3163]

Thanks for watching!