What is Information Memorandum?
An information memorandum (also known as offering memorandum) is a document prepared by your company to provide a comprehensive overview of your business to prospective investors.
It captures the past, current and future performance outlook and is typically used for raising large amounts of capital, for later stage investment after initial rounds, for divestment of major assets or for a sale of the entire business.
- Investment Highlights: A summary of the key selling points of the business generally and the proposed transaction specifically
- Corporate Information: Corporate history with major milestones, organisational structure, geographic spread, ownership, management team and their expertise, current and future business goals, strategies and plans
- Products and Services Offerings: Products and services your company offers, total number of customers and their segments, unique selling points and associated risks
- Performance Overview: Past and current financial and operational performance review, key performance metrics, future outlook of your company and how you will achieve targets
- Market and Competition: Overview and potential of the target market, current and expected market share, competitor analysis, industry drivers and barriers, applicable regulations and associated risk factors
- Proposed transaction: A summary of the transaction that investors are being asked to participate in including, where relevant, the reasons to raise capital, amount of capital to be raised, stake available for sale and related company valuations and clear information about what you will spend the funds on and why, including milestones and timeframes