An Information Memorandum (IM) is a package of documents created by business owners for prospective buyers or investors into your project. The primary mandate of an Information Memorandum is to motivate potential investment into your project or business. Although this package is designed to draw the interest of prospective buyers, it dually serves the purpose of transparency. Owners should avoid exaggeration, and aspire to disclose any information that will materially affect the value of the company.
Information Memorandums tend to be very exhaustive as they should include items relating to the financial standing, assets and liabilities, business description, market position, clients, strategies and promotion methods, markets served, etc. of the company.