An offering memorandum is a legal document that states the objectives, risks, and terms of an investment involved with a private placement. An offering memorandum serves to provide buyers with information on the offering and to protect the sellers from the liability associated with selling u Understanding an Offering Memorandum An offering memorandum, also known as a private placement memorandum PPM , is used by business owners of privately held companies to attract a specific group of outside investors. For these select investors, an offering memorandum is a way for them to understand the investment vehicle. Offering memorandums are usually put together by an investment banker on behalf of the business owners.
Film Private Placement Memorandum | Template, Example, Real PPM
Since a private placement memorandum, usually abbreviated as the PPM, is the norm in most deals, the founder should familiarize himself with the standards for memorandum preparation, keeping in mind that, like any legal document, there are various audiences. The audience composed of potential plaintiffs and, theoretically at least, the SEC enforcement staff will read the document against the requirements contained in the cases imposing liability. To the issuer , it is a sales document, putting the best face possible on the company and its prospects. To the managers, the memorandum is a summary of the business plan. Some would argue a date is important, because, legally, the document speaks as of a certain date.
Film Private Placement Memorandum
An alternative might be to use a private placement, a process for selling securities without going public or registering the sale. The SEC requires new offerings of securities to be registered to protect investors by giving them as much information as possible, but it also offers an alternative to registration called a private placement. A private placement is a securities offering that is exempt from registration with the SEC.
A private placement memorandum can be vital to raising capital, from the standpoints of professionalism, adequate disclosure of material terms, management of the offering, and the protection of both the Offerer and investors. Concord Business Plans can help you develop a private placement memorandum for your capital raising efforts. We want to get to know your business and your needs before we begin. Then we work in the following manner to complete the necessary documents:.