Definition
Information Memorandum
The document a business broker provides to prospective buyers outlining the business for sale.
Definition
An Information Memorandum (IM) is the primary document used in the sale of a business. Prepared by the broker or seller, it includes business overview, financial summaries (typically 3 years of P&L), key metrics, industry context, management overview, and the asking price rationale. BizBuyScore can extract the key financial data from an IM automatically using AI.
Worked Example
A broker lists a plumbing business with a 25-page IM. BizBuyScore's PDF extraction reads the IM and populates asking price, revenue, EBITDA, historical earnings, and employee count into the evaluation form.
Related Terms
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