Business Plans

Your information memorandum is an important piece of document. It provides in-depth information about your fundraising proposal and can come really handy when investors make a decision. Here’s a look at some of the top mistakes to avoid when creating an information memorandum .  Providing Insufficient Information about Usage of Funds You must have a concrete plan of what you’ll be doing with the funds being raised. Prospective investors are analyzing the management’s skills and their execution capabilities. Very often, business owners provide very little information in the Use of Funds section. This is your opportunity to provide a summary of how the investment funds will be used, and what goals will be met in the next 12 to 24 months.  Poor Board of Directors Composition  Investors are effectively investing in a management’s capabilities in executing a plan. This is an important consideration that decides whether your investment proposal receives a nod. A major r

An information memorandum is a document aimed at prospective investors/buyers. The prime aim of an information memorandum is to encourage prospective investors to invest in your business. Apart from helping you to draw interest in your business, an information memorandum also helps establish transparency.  An information memorandum package is usually lengthy as it must contain information about the company’s assets and liabilities, its financial position, market position, business description, strategies, clients and target market.  The Importance of Having a Well Organised Information Memorandum A top-quality information memorandum offers a great opportunity for you to present all the relevant information about your company. It’s important to present the information in a logical, appealing and coherent manner. After all, the document is a reflection of the company’s commitment to the sale, professionalism as well as the quality of management.  An Information Mem

If you are wondering whether an information memorandum is of any use, then you have reached the right place. In this article, I will address the concerns of business owners and show the usefulness of an information memorandum.  What is an Information Memorandum? This is a document that provides in-depth information about your business so the investors can make an informed decision. It provides a summary overview of the company that’s up for sale/investment. The primary purpose of an information memorandum is to provide information to investors so that they can understand the business better and review the opportunity at hand. The information contained in the memorandum will help investors decide whether they want to invest in the business.  Now let’s take a look at the benefits of preparing an information memorandum.  Professional Visualize this. You are at the investors meeting and you’ve just concluded your investment pitch. Your investors are expecti

An information memorandum is an important document that an investor would request for. An information memorandum sets the base for your capital raising plans and throws light on the past, present as well as the future plans you have for your business.  Here are some important headings you must include in your information memorandum.  Letter to Investors This could be a Director’s Letter or a Chairman’s Letter. The letter must summarize your journey so far as a business and where the business is headed for. Keep the letter brief but pack in a wallop in every word for maximum punch. Keep it no longer than one page.  Investment Highlights This is pretty simple. You could include a bullet list detailing the returns that investors could expect if everything goes as planned. However, it’s not only about the numbers. If you have an edge over the market in some form, highlight that fact too.  Executive Summary This is where you summarize the rest of your repor

You have an investment meeting coming up. Your pitch is ready and you’re all set. You will need a top-notch information memorandum (IM) that you hand over to investors after your knock-out pitch. A confidential information memorandum is a short document outlining your business plan. Usually running for 20 to 30 pages, your IM includes projections, analysis and explanation that you could use to pitch to your investors without boring them to death. Here are some essential aspects to cover in your information memorandum. Financials Be sure to include critical financials supported by explanations and pricing strategies. Include comments and notes where necessary. Lease and Rental Terms What are the lease and rental terms? What is included? Are storage, car parking and outgoings included in the lease contract? What is the rent and what are the payables? What’s the GST component? If there are any unique aspects or improvements that are required in the office space,