How to write a good information memorandum
Apart from preparing the detailed information memorandum, Coleago can also prepare teasers and presentations for potential investors.
Show that you have the best people on board who will make your fund a success. Get busy The outline above at least gives you an idea of the minimum level of information required when raising capital.
The objective of an information memorandum is to raise finance. If you need help crafting your Information Memorandum to ensure you attract the right investors, for your business or property development, contact me for a no obligation quote at bhucker ievoke.
Confidential information memorandum m&a
It should provide a clear and concise description of the business and opportunity in a presentation-style document of fewer than 20 pages. The IM should state if further funding rounds will be required, with an explanation of how the business value is expected to grow with each round. The IM should cover the following: Market understanding Demonstrate that you know the market and your target audience. But beware of painting yourself into a corner. The IM is similar to the pitch deck but it should contain much more information when it comes to analysis and facts. Commercial value proposition Why will your idea be the clear winner functionally and commercially? Disclaimer This article is general in nature and cannot be regarded as legal advice. Prime Innovation specialises in helping innovative and rapidly growing companies navigate the commercialisation pathway. Sample NDAs are available here and here. Intellectual property protection Investors would prefer that your core intellectual property is protected and that the IM describes the commercial advantage of such a monopoly. When investors are considering your project, the only information they have to review is what you give them after your pitch is completed. For this reason, investors will compare your valuation claim against similar early-stage ventures. In that respect it is a sales document.
If you prefer to sell your shares instead of a business-and-assets deal or have preferences about how long or in what role you might be willing to continue with the business, these should be stated.
At Coleago we have an experienced team of corporate finance specialists with expertise in both debt and equity financing and an extensive network of relationships which provides access to potential investors.
Information memorandum for fundraising
Team and board Some investors will only consider companies if those involved have already demonstrated commercial success. Asesoramiento Preventivo. What have you done to get here? The document should be succinct, realistic, and most of all well-organized, so possible investors know exactly where to look in order to obtain the necessary information for them to make a decision. Address the assumptions made throughout the Info-memo and list the risks in order of significance and likelihood of occurrence. Overall, this section needs to make you look productive! That way you will show that you are catching up with the regulators and leverage your credibility. If you prefer to sell your shares instead of a business-and-assets deal or have preferences about how long or in what role you might be willing to continue with the business, these should be stated. Address why a potential customer will make the purchase decision at your price point and how the sale will be profitable to the business. Pathway to exit Most investors will not be seduced by the prospect of a dividend return in the distant future. Describing what the funds sought are used for if invested in the business , the financial structure of the business and its future funding requirements. THE FUND— write about your investment strategy, region, stage, sectors, investment criteria and your expansion plan — where are you going and how are you going to get there? Size of the IM typically depends on the size of the fund, structure, complexity, nature of the investors etc. Show that you have the best people on board who will make your fund a success. How to Draft an Info-Memo
The Investment Offer Time to go into detail with regard to your investment offering. Often, your buyer will only actually read this and pass other sections to specialists.
Intellectual property protection Investors would prefer that your core intellectual property is protected and that the IM describes the commercial advantage of such a monopoly.
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