Our team is an industry recognized leader in the writing of private placement memorandums. Our staff specializes in drafting offering documents that span the world’s most popular industries in nearly 50 jurisdictions. A PPM, as the memorandum is referred to for short, is disclosure material that a company provides investors for their investment consideration. The private placement memorandum is as essential for an issuer to write when selling securities as it is for them when developing a business plan to determine the feasibility of the proposed business venture. Within the PPM will be information related to the offering, such as the of stock price or bonds terms, i.e. maturity, interest rate, investor returns, ROI, and subscription purchase information. Prospectus LLC has been writing private placement memorandums globally for over fifteen years. We can ensure you are properly structured in a cost effective and efficient, timely manner.
Private Placement Memorandum – Reason for Writing a PPM?
There are many valid reasons to write a private placement memorandum. From abiding by securities regulations to pacifying investor qualms, the writing of a PPM is essential for any business selling stock or bonds, i.e. securities. San Diego based entrepreneurs and companies will also need to comply with securities rules and seek to impress investors.
One of the primary reasons for writing a private placement memorandum PPM is to comply with regulations governing the sale of securities. It does not matter what country one is offering the equity or debt securities. Every country has its own rules and therefore each company must comply with the laws. Most savvy or accredited investors will want to ensure that the company seeking funding is in compliance so that no legal or regulatory issues come back to haunt the issuer. Investors will look to determine how experienced and professional the issuers are in relation to their offering documents and business plan. Poorly written or not thought-out strategies can doom any startup or later stage company from growing.
In addition to complying with securities law, the private placement memorandum can grant an aura of legitimacy or maturity to a young company. The PPM shows that one is serious about compliance. One of the features of a PPM that is important to note: a private placement memorandum contains a section called the risk factors. This area is specifically included in a PPM to show investors that an investment is risky. The risk factor will highlight the pertinent threats to the company and its ability to generate revenue or profit. An investor is normally warned that they could lose their entire investment.
Recap of Most Important Points for Development of a Private Placement Memorandum
- The writing of a PPM is essential for compliance purposes. Abiding by securities rules worldwide or in one’s own country is the first step when raising capital. The private placement memorandum shows that a company wanting to raise money is attempting to be law abiding. This can go a long way with investors.
- A private placement memorandum brings credibility to the directors of the company and can add protection from investors who lose their capital. Putting together a private placement offering memorandum takes time and costs resources. This shows that the issuer takes seriously the role a private placement plays in the capital acquisition process. In addition, since the risk factors outline the pitfalls of the company’s business plan or market, investors should not be able to try and recoup their investment when knowing upfront the risks associated with the business. Thus, the private placement memorandum can help shield the company’s directors from investors claims.
What Prospectus LLC’s Team Can Accomplish
Our staff is part of a larger team that assists companies on the ground in many countries. Prospectus LLC is a subsidiary of Prospectus LLC, the leader in prospectus and private placement memorandum writing, among many other services offered throughout the global financial world. Our team is dedicated to providing the highest quality services for the best pricing, at fast speeds, all of which are superior to others. Hundreds of companies and law firms have outsourced their own work load to us as we are known as reliable and straight forward.
Feel free to contact us for a free private placement memorandum consultation.
- Prospectus Writing
- IPO Stock Exchange Listing
- Bonds Offerings
- 144A Reg S Offerings
- Hedge Funds and Mutual Funds
- Offering Memorandum
- Offering Circular
- Explanatory Memorandum
- Information Memorandum
- Fund Setup Formation
- Securities Identifiers
- Registration and Filing
- Legal Work
- Business Plans