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are you talking about offering memo? confidential information memo? if so, they are basically books that have complete information on your sell-side (or buy-side) mandates including but not limited to:
-Business overview (exec summary) -Transaction rationale -products & services -industry and market landscape analyses -management -summary financials -etc....
you first send out teaser pages to potential buyers, they express interest in it, sign NDAs, give offering memo, further interest (sometimes at this stage, they put down offers), due diligence stage where you give potential buyers access to the dataroom and etc.
hope this helps?
.
Def does.
What are NDAs?
Usually, is this done by Analysts/Associates?
Is due diligence is usually the last step in this entire introductory process?
NDA=nondisclosure agreement
Non-disclosure Agreements. (NDA)
So potential buyers express their initial interst in your sell-side mandate based on the teaser sheet you sent them. That means that the buyers want to seriously take a look at the company information (up to this point, your sell-side mandate's name has not been disclosed). You sign the non-disclosure agreement with the buyers before you give them the offering memo. usually the language restricts the buyers from sharing the confidential memo, soliciting employees from the sell-side mandate, and etc.
The offering memo is usually done by analysts and associates.
the due diligence step is usually the last step. this is done shortly after management presentations. ok, so the process goes like this:
teaser page sent -> potential buyers express their interest -> sign NDAs with them -> send them the confidential information memo -> potential buyers express interest (you could have them give some idea as to how much they are willing to pay so that you can winnow out low ballers or leverage on high offers to raise other bidders), now more serious buyers are left since some back away after the review of your memo -> management presentations with these serious potential buyers -> open your dataroom with all the documents and etc. (such as detail financial statements, models, client make up information, and etc.) -> due diligence starts once the dataroom is open to serious buyers. -> afterward is dealt a lot between your bank, sellside company, buyer and lawyers.
Due diligence is when those serious buyers are given access to all the necessary detail information on your sell-side mandate as i described above. the deal may go through or fall through during this period...
Would these memorandums ever be drafted in pieces of different groups?
product specialist would handle product aspects industry specialist would handle industry aspects tax group would add their 2c of how the deal would create tax savings/losses etc.
After reviewing the CIM, buyers are generally asked to submit preliminary indications of interest based on the offering letter that generally accompanies the CIM, the offering letter outlines the process timeline, bid requirements (i.e. range, EBITDA multiple, etc), working group disclosures, financing availability)
After round 1 PIIs, anywhere from 4 - 10 groups are invited into the next round to meet management (if they havent already), access the data room (if it was open in round 1 it will be much more detailed in round2), Bids are generally due several weeks later, money is spent on lawyers, consultants, accountants etc. during the due diligence phase
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