Our article on creating sales materials that work covers what most sellers need. For larger deals — typically when a professional advisor or broker is involved — you'll often encounter a more formal term for the same basic document: an Information Memorandum, abbreviated IM.

Short answer: An Information Memorandum is a thorough, formal sales document (typically 30–50 pages) covering the business's model, finances and future prospects. It's primarily used for larger deals with several qualified buyers, and is only shared after a potential buyer has signed a confidentiality agreement. For smaller deals, ordinary sales materials are usually sufficient.

What is an Information Memorandum?

An Information Memorandum is the central sales document in a more formalized sale process. It describes the business's model, market, organization, financial key figures and future prospects, and serves as the primary basis qualified potential buyers use to submit an initial, non-binding offer (an NBIO) after signing a confidentiality agreement.

From teaser to IM: the typical sequence

In a formalized sale process, the business is often presented in two steps: first a short, anonymous teaser, sent broadly to a wider circle of potential buyers without revealing the business's identity. If a buyer shows concrete interest and signs an NDA, they then get access to the full Information Memorandum.

What's the difference between an IM and ordinary sales materials?

The difference is primarily one of scope and formality, not fundamental content:

  • Ordinary sales materials are often shorter and more direct — sufficient for a buyer to assess whether the business is interesting, without necessarily revealing every detail immediately.
  • An Information Memorandum is typically far more comprehensive — often 30–50 pages, depending on the business's size — and goes in depth on finances, strategy, competitive position and future prospects, because it's intended for a more structured process with several qualified, serious buyers.

What does an Information Memorandum typically contain?

  • A summary of the business's activities and "equity story" — the narrative of why the business is attractive.
  • Detailed review of financial performance and key figures.
  • Organization, management and key employees.
  • Market and competitor analysis.
  • Growth opportunities and strategic considerations for a new owner.

When does it make sense to make a full IM rather than ordinary sales materials?

If your business is relatively small, or you only expect one or a few potential buyers, ordinary sales materials are usually sufficient. If instead it's a larger deal, where you — or an advisor on your behalf — actively seek out several qualified buyers to create competition on price, a full Information Memorandum provides a more professional and consistent basis for presenting the business to all interested parties simultaneously.

Who typically prepares an Information Memorandum?

For larger deals, it's often prepared in collaboration between you as seller and an advisor or broker experienced in structuring this kind of document for a professional buyer audience. See our walkthrough of how to choose the right advisor for the task.

Frequently asked questions

Do I always need to make an Information Memorandum when I sell my business?

No. For smaller deals, ordinary sales materials are often sufficient. A full IM only genuinely makes sense for larger deals with several qualified buyers involved.

How long is a typical Information Memorandum?

Often around 30–50 pages, depending on the business's size and complexity.

Who gets access to an Information Memorandum?

Typically only qualified, serious buyers who've signed a confidentiality agreement — unlike the public listing, which anyone can see.

What's the difference between a teaser and an Information Memorandum?

A teaser is short and anonymous and sent broadly to spark interest. An Information Memorandum is far more detailed and shared only with qualified buyers who've signed a confidentiality agreement.

Considering a larger deal requiring a full Information Memorandum? Read also our M&A glossary, or book a no-obligation call.

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