Writing a Offering Memorandum

Writing a Offering Memorandum

Prospectus.com‚Äôs team has written and edited or assisted with thousands of offering memorandums. Ranging from hi tech to medical to real estate, there isn’t an industry or business venture that we have most likely not assisted. If your company or fund is considering undertaking a private or public offering and needs an offering memorandum (OM) document to give to investors to raise capital, our team has the experience and will to assist. We can structure your OM documents to ensure regulatory protections and attractiveness to investors. Our firm offers a collaborative process and custom writing Offering Memorandum services and can assist in the writing of your OM documents.

What is an Offering Memorandum

An offering memorandum is a disclosure document used to raise capital. Withing the OM will be information such as what the company is offering investors for his/her capital, as well as securities disclosures and rulers, risk factors, management information and the subscription agreement, amount many other features.

Issuers Selling Stock or Bonds or Notes

For issuers considering selling stock in the company or selling debt securities to investors a well-tailored and written Offering Memorandum is mandatory if an investor is to write a check for investment in your company. An Offering Memorandum document can bring added protection to your business and is surely needed to raise either debt or equity capital in the private placement market. A professional drafted Offering Memorandum details the company‚Äôs current position, from the minute details of the types of securities being issued (equity securities or debt securities like notes or convertible bonds), to the management team, the market, the risk factors and the overall business plan model of the company, including the financial projections and/or audited financial statements. The back of any offering memorandum encompasses the investor questionnaire and the subscription agreement, which collectively referred to as the ‚Äúsubscription documents‚ÄĚ. Both are essential for an investor as he/she can fill out the questionnaire and the subscription agreement and make a payment for purchase of the stock or bonds or other securities.

Although the Offering Memorandum is first and foremost a document used to raise capital, the structure and presentation of the Offering Memorandum can add value to a company’s products and services and the management personnel as well by pinpointing the position of power and strength of each, which of course would be written in a compelling and professional, smooth flowing document. A OM indicates to investors that the issuer is serious and has gone the extra length to ensure regulatory compliance and good business practices. In the absence of formal business plan and offering memorandum to educate investors regarding the company’s model and structure it will be most difficult to raise money from investors.

Issuing securities and selling them to investors is a good way to jump start one’s business. It is always recommended that a disclosure document be given to investors prior to accepting money for the securities.

Our team at Prospectus.com has years of experience writing offering memorandums for companies and funds worldwide for hundreds of varying industries and businesses. We work one on one with our clients during the Offering Memorandum drafting process and take it upon ourselves ‚Äď in almost obligatory fashion ‚Äst to assist our clients with their quest for growth once our services our complete.

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