A confidential information memorandum (CIM) is a detailed document prepared by a business broker or M&A advisor to present a business for sale to qualified, pre-screened buyers. It covers financial performance, operations, market position, growth potential, and the overall story of the business in a format designed to help a serious buyer understand exactly what they would be acquiring.

Last year I sat across the table from a guy who built a $1.2 million revenue premium hair product company over 18 years. Good business. Solid customer base. Repeat revenue from service contracts. He told me he wanted $3.5 million for it. When I asked how he arrived at that number, he said his accountant mentioned that businesses sell for "five or six times earnings." That accountant was thinking of mid-market companies with professional management teams and $20 million in rev