If you are looking into the possibility of selling your business, you will likely have been advised on the need to pull together an Information Memorandum. But what is it and what does it contain?
An Information Memorandum is essentially a summary document that provides a potential suitor with all the information necessary to make an informed decision as to whether or not to make an offer for the company.
What is in an Information Memorandum?
An Information Memorandum contains both financial and non-financial details and will cover everything from the way the company operates, the wider market for the business, management, competitors and of course financial data including the forecast figures discussed above.
Whilst this is a summary document that should be easily navigated by the reader it is designed to be fairly comprehensive in detail and will probably require professional input from a corporate financier.
Once you have finalised the ‘main’ document, you’ll also prepare a one or two page ‘flyer’ or ‘teaser’ document which will be prepared for initial circulation.