Thoughtfully Written Business Memorandum Documents

Our team of professionals at Cambridge Corporate Finance helps you navigate raising capital, from creating a business plan to a pitch deck. If you need the perfect business memorandum, you came to the right place.

We can help you successfully create a business memorandum that contains essential company information and metrics that investors want to see.


Why a Business Memorandumis Important for Your Business

A Business Memorandum, specifically a private placement memorandum or information memorandum (in the UK), is a legal document that contains information about the securities a company is offering, and important company details. A company should provide a private placement memorandum to prospective investors. Therefore, a private placement memorandum is critical if you plan to sell securities to raise capital for your company.

SEC Rules and Regulations

There are two different types of private placement memorandums – equity and debt. Let’s explore the difference between the two different types.

Debt Memorandums

A company should use a debt memorandum when it sells bonds or notes. In this type of memorandum, the company should outline the interest rate and maturity date of the debt security. Furthermore, the memorandum should mention whether or not the debt security converts to an equity security at a later date.

Equity Memorandums

The second type of memorandum is an equity memorandum – when a company sells a security in exchange for an equity stake in the business. A company usually sells equity in the form of stock. The memorandum should notate whether the stock is common or preferred.

What Information Do Memorandums Contain?

Both equity and debt private placement memorandums should contain the following critical company information:

  • The Market Potential
  • Strategic Goals
  • Risks
  • Management Overview
  • Financial Projections

Private Placement Memorandums vs. Information Memorandums

If you are in the United Kingdom or Asia, you may be familiar with the term “information memorandums.” In essence, an information memorandum has the same goal as a private placement memorandum: to provide important business information to investors. There are slight variations in the verbiage used in an information memorandum.

An information memorandum contains an “investment thesis.” The goal of the investment thesis is to give investors reasons why they should invest in the company. Another notable variation in verbiage is the term “profile.” For example, customer profile, employee profile, and revenue profile. A profile is merely a summary or a description of a particular area of the business. The customer profile would be called the “target market” in a private placement memorandum. While the contents of the memorandums are nearly the same, it is important to note the differences in language.

Another difference between the two memorandum documents is that US securities lawyers write private placement memorandums and business analysts write information memorandums. Moreover, a private placement memorandum contains the detailed legal terms of the security and is paired with a subscription agreement — an agreement entered into by a company and investor to buy shares at a certain price. Information memorandums, on the other hand, contain standalone information only.

Want to Learn More About The Two Different Types of Memorandums?

Read more about each memorandum, in detail:

Private Placement Memorandums

 An information memorandum contains important details such as projected growth, historical financial data, and an overview of the management team that runs the business.

Information Memorandums

Also referred to as an offering memorandum, a private placement memorandum is a legal document that investors receive before buying a security.

Ready to Get a Private Placement Business Memorandum Document?

Contact us today to get a professional DCF valuation with the help of skilled financial professionals. With a DCF valuation, your business can get the funding it needs to achieve optimal growth.

Next Steps

Are you ready to secure capital funding and expand your business’s reach? Schedule a free consultation with us today. Our team is ready to evaluate your capital needs and create a tailored approach to help you succeed. No commitment is required to begin the conversation.



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