What is a confidential offering memorandum?
The Confidential Offering Memorandum (COM) is a document used for selling a business. In order for the buyer to view the business at both attractive and as having a high value, the COM must display all pertinent information about the business in a positive light.
Is an offering memorandum legally binding?
The document is legally binding, and its importance goes beyond being a necessary document in the process of investment for both sellers and investors. The offering memorandum also provides protection for the investor and for issuers of securities.
What is the purpose of a CIM?
For companies selling their business and involved in a sell-side process, a confidential information memorandum (CIM) is a lengthy (typically 50-150 pages) marketing document that provides potential buyers with a detailed first impression of your business before they would meet the selling company in person.
What is the difference between articles of association and memorandum of association?
The memorandum of association is the document that sets up the company and the articles of association set out how the company is run, governed and owned. The articles of association includes the responsibilities and powers of the directors and the means by which the members exert control over the board of directors.
What is included in an offering memorandum?
An 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.
Do I need an offering memorandum?
Do I Need a Private Placement Memorandum to Raise Investment Capital? The short answer is that it depends, but it is usually advisable and sometimes required. A PPM is a document that discloses information regarding the company that is seeking to raise investment capital.
