Been screening a lot of CIMs (Confidential Information Memoranda) at my PE internship and it seems like some of them can be pretty complex or very time consuming to make. Do IB analysts make these? I'm sure they make the financial models for them but wondering who usually makes them from start to finish. Associates? Also the time frame to create a CIM.
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Combo of analyst/associate, with the analysts usually doing more of the dull/time-consuming work (small edits, formatting, etc.). Suppose you could say VP's and MD's also help out (read: make the team completely change the original draft only to say that the original draft is better in the following meeting). Time frame depends on the timeline for the overall process
Good to know. Thanks!
who comes up with the actuall wording for CIMs/pitchbooks/offerings prospectuses? (Originally Posted: 07/25/2009)
is it the analysts? associates? company management?
There are usually pre-existing templates/boilerplates.
For any type of legal document (prospectus), attorneys have a hand in it along with senior bankers (VPs).
Pitchbooks are usually generic with minor tweaks. Analysts may be asked to copy and paste stuff in or put together company profiles, but they don't write up entire slides with original material in a book (at some boutiques, analysts are given the opportunity to write in original material which gets edited).
Bankers usually put together a boilerplate CIM and then hand it over to the company to fill in. And then it goes back and forth between consultants, bankers and the management team.
If your team was going to committee for a financing, analysts/associates may draft a good amount of the material which would be reviewed/edited by all the senior guys on the deal team. Like everything else, there is a boilerplate.
Most of this information relates to banks with established practices.
I'm making it up as I go along.
It really depends on a variety of factors. Also to clarify CIMS/Pitchbooks/and Prospectuses are all very different materials intended for very different audiences.
CIM - generally a collaborative effort between the bankers and the company management/PE firm ("Client"). The Client generally provides the raw data (financial statements, debt documents, etc. There are also management commentary sections that are more qualitative and those are the most collaborative sections as the client wants to ensure that the appropriate message is conveyed. The Client will generally schedule calls with the bankers and go through changes and then the associate/analyst will incorporate changes, VP (or in some cases the MD) will review/comment and circulate back to client. This goes on until all parties are satisfied.
Pitchbooks - the bankers (sometimes includes legal input) draft pitchbooks generally off of existing templates and revised to coincide with the current pitch
Prospectus - by far the most complex and time consuming of the bunch and includes input from bankers, lawyers, consultants and the Client. The Prospectus is obviously different if it is an IPO, merger, etc. but it takes at least a month of painstaking attention to detail and then subsequent SEC review (generally multiple rounds of comments) before you have a final product.
Hope thats helpful...feel free to ask specifics as necessary as I rambled a bit
so assuming your MD thinks newspapers are coming back he wants to pitch a company to buy a newspaper business, does he just tell the analyst to build from scratch a slide that says "newspaper market to increase in the next 5 years" and the analyst is responsible for researching valid supporting material to that statement?
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