Private Placement Memorandum Basics: A Must Read If You Are Raising Capital
Are you a business owner raising capital with a Regulation D Rule exemption (504, 505 or 506) also referred to as a Private Placement Memorandum, PPM or Offering Memorandum? If you are using this mechanism to raise capital then you’ll, no doubt, have to have a solid comprehension of the most distinct and important part of the Private Placement Memorandum referred to as the ‘Offering Circular’.
When your consultant or attorney is asking you for details on everything from business location to management, from dividends to risk details, you need to make sure that this information is complete and accurate. You’ll need to audit the documents after they are completed. A solid Offering Circular has kept countless companies from being sued by investors that didn’t get the investment return they were anticipating.
While the business plan is meant to grab the initial attention of the investor or funding source, the Offering Memorandum is meant to spell out the down and dirty details of the venture so that you are protected from lawsuits down the road, while simultaneously exposing the various ins and outs of your venture to give a ‘reality check’ to the investor before they hand over the cash.
The offering circular needs to be powerful yet very compact without the redundancies of using space to say the same things over and over again to pull the investors attention from the negative to the potential profit margins or management’s impressive pedigree. With all this said, yes it’s true the offering circular is one of the parts of a PPM spells out the technical aspects of the enterprise with a focus on inherent risk of investing but this can be done in a balanced way to also demonstrate the positive aspects of your venture by giving solid descriptions of your management team and, in place, distribution centers and contracts in place ready for capitalization.
When authoring the offering circular demonstrate the risks with a well balanced demonstration of the system in place to overcome these risks and dominate your market niche.
Call Princeton Corporate Solutions at 267-233-0183 if you would like to talk to someone about yourOffering Circular, Want to Take Your Company Public We Can Help!
categories: private placement memorandum,private placement memorandums,take company public,take company public otcbb,rule 504,rule 505,rule 506,Princeton corporate solutions,james scott,princetoncorporatesolutions.com,investor finder
Related posts:
- Private Placement Memorandum and OTCBB: Make Investors Come To You In Droves! If you are trying to raise capital with a PPM...
- Private Placement Memorandum (PPM): Get the Investors You Need, Now! Entrepreneurs are being turned onto Regulation D in droves. Regulation...
- PPM, Offering Memorandum: Raise Capital Quickly Even With Bad Credit Real estate investors bird-dogs are constantly on the lookout for...
- Take Your Business Public and Raise the Capital Your Need In these monetarily depressing times businesses are looking outside the...
- Need Corporate Capital Fast? Your First Call Should Be To A Turnaround Consultant Most companies who are on the venture capital trail are...
Related posts brought to you by Yet Another Related Posts Plugin.