Offering Memorandum



An offering memorandum is a collection of detailed information that private investors typically require before funding a company.

Uses

  • Seeking funding from private investors
  • Considering investing in a privately-held company.

Overview

There are several ways that businesses raise the capital they need to get off the ground. Many businesses take out loans or issue stock on public exchanges, but these options are not suitable for every company. An offering memorandum is a report of key financial and operational information about your business that is used to attract private investment. Investors often perform extensive due diligence before investing in a new company, and an offering memorandum provides them with much of the information that they will need to make sure the investment is workable. An offering memorandum is similar to a business plan, but much more detailed. Some companies choose to work with investment bankers to develop offering memoranda, but this comes with a hefty price tag. Thrifty entrepreneurs looking to raise capital for their venture can use this interactive form to develop a complete and effective offering memorandum. Investors can also use this tool to develop an offering memorandum for a potential investment in case it is not available from the business owner. At the end of the day, investors are ultimately responsible for performing their own due diligence, and this offering memorandum is a great way to make sure you have all of the information you need to make an informed financial decision.

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