Private Placement Offering Memorandum Templates

An private placement memorandum (PPM) or offering memorandum is a legal document that states the objectives, risks and terms of an investment involved with a private placement. This document includes items such as a company’s financial statements, management biographies, a detailed description of the business operations and more. An offering memorandum serves to provide buyers with information on the offering and to protect the sellers from the liability associated with selling unregistered securities.

The business plan and a private placement memorandum serve different functions. A business plan is used as a marketing document created to sell the company from a marketing point of view. It necessarily contains operational information, forward-looking statements, anticipated revenues, potential markets, information about partners, directors and also possibly financial projections of revenue and income . On the other hand a private placement memorandum is a full disclosure document presented in a format that is more factual, pessimistic, realistic and down-to-earth. It must contain all the bad news risk and potential downfall or liability of the company. It will include the list of competitors, an industry market analysis and a description of the management chain. It must list all possible scenarios involving the company that could go wrong. It must address the competition regardless of how gloomy the prospects of the competition or how sophisticated the competition.

In summary, while the business plan reveals the need for financing to create and grow the company, the Offering Memorandum is primarily for the investors and it focuses on the transaction you wish to have with them. It explains what you want from investors, and what they’ll get in exchange for their investment.


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Business Plan Templates
The collection of business plan templates can also be accessed below:

Business Plan Investor PresentationFinancial ProjectionsStartup Agreements
Offering MemorandumMarket ResearchSWOT Analysis