Writing a Prospectus

Writing a Prospectus

Prospectus.com’s team has written and edited or assisted with thousands of prospectus. A prospectus is used to raise capital. The issuer (the company issuing debt or equity securities such as stocks or bonds), writes a prospectus and gives it to investors for (hopefully) their spatial.  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 offering or a public offering and requires a prospectus to give to investors for the offering, our team has the experience and will to assist. We can structure your offering prospectus documents to ensure regulatory protections and attractiveness to investors. Our firm offers a collaborative process and custom writing prospectus services and can assist in the writing of your documents.

What is a Prospectus

A prospectus, at least in finance, is a disclosure document that an issuer writes that is then given to investors for them to consider (and hopefully) invest in the company. The prospectus will outline the terms of what the issuer is offering in return for investment capital, and include such vital information as the securities disclosure, rules about reselling securities,

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’s 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 “subscription documents”. 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.

Developing and writing a formal prospectus is good business practice. In many cases, an issuer or company cannot raise capital without writing a prospectus. It would be hard to find a sane investor willing to invest his/her capital in a company that does not write a prospectus or a formal disclosure document.

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 – in almost obligatory fashion –  to assist our clients with their quest for growth once our services our complete.

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