Preparation of Information Memorandum
When a company seeks to raise finance it will almost certainly need to prepare some form of Information Memorandum and accompanying presentations. The document needs to describe the existing business and also the investment opportunity that will appeal to the potential providers of finance. At Coleago we have an experienced team of corporate finance specialists with expertise in both debt and equity financing and an extensive network of relationships which provides access to potential investors.
Objectives of an Information Memorandum
An Information Memorandum is a written description of the business for which the client is seeking funding from equity investors or debt finance. The objective of an information memorandum is to raise finance. In that respect it is a sales document.
Scope of an Information Memorandum
The detail required and hence the length of an Information Memorandum varies depending on the type of investors targeted. However, the core content is always the description of the business from a strategic, operational and financial perspective, i.e. “what is the business about”, the market, and the investment opportunity or “investment rationale” from the investors’ perspective i.e. the return on investment.
Depending on the audience an Information Memorandum is subject to a great many formal legal requirements. These legal requirements are most extensive where shares or other forms of funding instruments are offered for sale to the public. Compliance is essential.
Services Provided by Coleago
Coleago’s services focus on the business plan and investment aspects of the Information Memorandum. This includes preparing a document with a business description and an explanation of the investment opportunity, including the preparation of a full excel based business planning and financial model:
Writing the business plan, including the business strategy, the market potential, competitive environment, description of the operations, the organisation and governance, detailed financial modelling, the valuation and risks.
Describing what the funds sought are used for (if invested in the business), the financial structure of the business and its future funding requirements.
Explaining the investment rationale, e.g. how equity investors achieve the return on their investment e.g. by means of dividend payments, a future trade sale or an IPO or how debt would be repaid.
Apart from preparing the detailed information memorandum, Coleago can also prepare teasers and presentations for potential investors.
Coleago does not provide services that, depending on the jurisdiction, are regulated services. These services include legal, investment advisory and auditing services. However, Coleago can either work with authorised partners or liaise with other entities to create an attractive, informative and legally compliant document, ready for publication.
Call or email us to discuss your needs and to receive Coleago’s Information Memorandum Process document.
Stefan ZehleT: +44 7974 356 258
Graham FriendT: +41 79 855 1354
Scott McKenzieT: +44 7825 294 576