Private Placement Memorandum (PPM)

A Private Placement is an extremely complex document. The primary purpose of a PPM is to give the entrepreneur the opportunity to present all potential risks to the investor. The PPM protects the entrepreneur in the event that the investment goes sour! That's why it's so important that the private placement memorandum be accurate and complete.

An attorney MUST review your offering to assure it complies with all national and state regulations. Failure to do so could cause some serious problems down the road, especially when approaching an initial public offering!

This is a very detailed, 70+ page Private Placement Memorandum (PPM which includes a  engagement letter, investment bank term sheet, due diligence checklist,  private placement memorandum and the subscription agreement! Everything your company needs to issue stock in accordance with the Securities and Exchange Commission. Also details the summary of the offering, financial data, industry overview, management, etc.

There are several ways in which companies approach the creation of a PPM.

• Attorneys. Many firms simply retain an attorney to prepare the PPM. Once complete, the management team is responsible for soliciting and pitching potential new investors. The only fees incurred are those of the attorney and the time of the management team. Attorneys will charge from $5000 to $20000 for a full private placement. An attorney may be a good route for companies that already have a well established network of possible investors to pitch the investment opportunity.
• Investment Banks. Other firms hire an intermediary (investment bank) to help with the capital raise. Hiring an intermediary can be tricky.. An entrepreneur will encounter all sorts of institutions offering all sorts of different promises to raise money for the start-up. The decisions and processes can be very confusing and time-consuming. For many start-ups a wrong decision will KILL the company. There are all sorts of negotiations involved when retaining an investment bank, and there are many different types of investment banks. As the entrepreneur YOU must be at the top of your game or you will get the short end of the stick!
• PPM Specialists. Firms specializing in this arena are often a hybrid cross between legal counsel and an investment bank.

We ask that you provide complete and accurate information on all of your application and supporting documentation. Any missing information or misrepresentations only slow down the process.

As a reminder and for purpose of clarity, this is not an investment opportunity with BEI Financial Group. Should you meet our qualifications, you will be ideally placed with the appropriate service provider that has agreed to prepare the PPM.

We invite you to contact us regarding this transaction by filling out the contact form below.