Helping Companies Make Informed Investment Capital Decisions
Growthink’s experienced private placement memorandum team has helped companies raise hundreds of millions of dollars in outside financings. We offer a comprehensive suite of PPM advisory and preparation services that include everything from initial research to document drafting, editing, and packaging, to legal review, to prospective investor distribution, tracking, and more.
Private Placement Memorandum Overview
Private placement memorandums are utilized by privately held companies to present and communicate an investment proposition in as complete and comprehensive a manner as is possible (including a detailed listing of all material risk factors.) Sometimes referred to as an offering memorandum, it is often the most important document to raise capital, reduce litigation risk, and comply with relevant regulatory and securities compliance requirements.
Why Choose Growthink Capital to Prepare Your PPM
Our private placement memorandum development process ensures the quality and effectiveness of your business plan, PPM, presentation materials, and fundraising efforts. Importantly, we connect the PPM to the other key investor fund-raising and growth strategy documents – business plan, investor presentation, financial projections, equity/debt issuance tables, other documents, etc., with the overriding objective of helping our clients raise capital on the fastest possible timeline and on the best possible terms.
From our ongoing dialogues with a wide swath of private equity, venture capital, family office, and ultra-high net worth accredited investors, we leverage this knowledge to develop private placement memorandum and presentation materials that are in tune with current market conditions and that maximize the likelihood of a company raising capital both efficiently and, from a valuation perspective, favorably.
Additionally, when compared with having a PPM developed by a traditional securities law firm, having us develop your private placement memorandum and other deal offering materials can provide significant time and cost savings. (Please note, we do strongly recommend a PPM review by legal counsel before investor distribution.)
As the investment banking affiliate of esteemed business strategy consultancy Growthink, our PPM advisory and business plan work and expertise has been repeatedly recognized by leading media sources such as The New York Times, The Wall Street Journal, BusinessWeek, Fortune, Forbes, and Entrepreneur Magazine, among others.
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Interview Management Team
To understand the business model, competitive landscape, and management team, we will interview management regarding the company’s vision, mission, capital structure (amount of money to be raised, valuation, share structure, etc.), and other key aspects of the business.
Conduct Strategic Research
We will then conduct extensive research on the industry in which your company operates, its target markets, customers and competitors, as well as broader market and economic trends.
Complete Financial Projections
Building on the above, we will then develop offering documents that incorporate financial projections and proformas that model the allocation of funds raised, along with best, worst, and base case “raise money” scenarios of anticipated financial performance.
Draft Offering Memorandum
Building on this research and analysis, our team of experienced investment bankers will draft a private placement memorandum tailored specifically for your company and its investment purposes. The PPM will include pertinent information about your financial and business matters, such as its history, management, products and services, prior financial performance, and future prospects, cap table (common stock, preferred, debt, etc.), Regulation D requirements, etc.
Revise, Edit, Package & Finalize
Once the PPM is complete, we will work with you to revise and edit the materials until you are completely satisfied. We will also package the PPM with any other supporting materials, including Investor Marketing Materials including an executive summary, such as an Investor Executive Summary and an Investor Presentation / Pitch Deck.
Benefits of Using Professional PPM Services
Effective private placement memorandums help prospective investors make a decision on investing based on companies’ particulars. By presenting a well-prepared, thorough document that addresses both internal and external considerations and risks, confidence is naturally built with the right investors that the various scenarios and capital risk factors have been appropriately reviewed, discussed, and vetted.
Reduce the Risk of Litigation
By clearly listing and elaborating on all of the material risks to a fund-raising proposition, a comprehensive PPM can significantly reduce the risk of future disputes and litigation, along with building confidence and trust in company management’s full understanding of all of the potential roadblocks and complexities to the offering and its growth and investment return.
Save Time & Money
Preparing a PPM can be a time-consuming and expensive process. By leveraging professionals with experience with all aspects of the PPM and private company financing process, in a relatively short period of work, significant time and money can be saved.