Private Placement

Concord Business Plans & Private Placement

Along with a business plan, a private placement memorandum (PPM or sometimes referred to an “Offering Memorandum”) is another important document for entrepreneurs. A private placement memorandum can be vital to raising capital, from the standpoints of professionalism, adequate disclosure of material terms, management of the offering, and the protection of both the Offerer and investors.

Concord Business Plans can help you develop a private placement memorandum for your capital raising efforts.  Using one of our private placement offering memorandums gives you the structure to raise funds from a wide variety of equity and/or debt financing resources, including friends, family and other qualified investors.

Methodology

We want to get to know your business and your needs before we begin. Then we work in the following manner to complete the necessary documents:

  1. Initial discussion.
  2. Review existing materials such as the business plan, market research, and competitor research, etc.
  3. Follow-up discussion to clarify details and agree upon the scope of the project.
  4. In-depth discussions on a wide spectrum of Offering-related issues, in order to better understand the details, develop strategies, and agree on all major elements of the Private Placement Memorandum (PPM).
  5. Conduct additional research, as needed.
  6. Incorporate revenue and expense models.
  7. Draft Private Placement Memorandum (PPM).
  8. Finalize all deliverables, including the private placement memorandum and any related documents agreed upon with the client.

Why Write a Private Placement Memorandum

There are many reasons an entrepreneur may decide to utilize a private placement memorandum for a funding initiative. One reason is to comply with all applicable SEC rules and regulations for non-registered offerings of securities. Another reason is to protect the issuing entity from claims that adequate disclosure of risks or other material terms were omitted by the issuer.

Cost Effective

Concord Business Development is one of the most affordable and cost efficient firms with one of fastest turnaround times for completing private placement memorandums. Our firm offers the highest level of professional and personalized commitment while developing a private placement memorandum and saving entrepreneurs thousands of dollars in expenses.

Private Placement FAQs

1.   What Is A Private Placement?  A private placement is a way of raising capital from a small number of select investors without a public offering or a registration of securities.  A private placement is authorized under Regulation D of the U.S. Securities Exchange Commission and the Rules thereunder, in particular, Rules 501-506.  The funds raised can be raised through offerings of equity, or in some cases debt or convertible debt securities.  The Rules promulgated under Regulation D include important definitions, duties and obligations of the offering entity, amounts that can be raised, disclosures and SEC documentation requirements, among other important items of information.

2.   Is A Private Placement Right For Me?  A private placement is useful for many companies and entrepreneurs and can be helpful in raising early stage, gap or bridge funding, including seed rounds, angel or super-angel rounds, or even institutional rounds in some cases.  Private placements can be well-suited for a variety of entities including LLCs, LPs, and S corporations.   The funds raised can be used for launch, growth, expansion, marketing or other uses disclosed by the offering entity.

3.   How Long Does It Take To Prepare A Private Placement?  The time varies; depending on the complexity of the offering and the status and readiness of the offering entity, but the needed documentation normally can be prepared in 2-4 weeks.

4.   What Are Some Key Issues I Will Have To Decide?  There are literally scores of issues that will need to be decided by the offering entity including the nature of the offering entity, type of offering, length of offering, amount of raise, special needs of likely investors, nature of the security offered, specific use of funds, benefits offered investors (such as warrants or preferred status, kickers, conversion preferences, anti-dilution protection, and others), valuation, M&A issues and so on.

 

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