Information Memorandum

Developing Information Memorandum for Large Projects

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Developing Information Memorandum for Large Projects

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.

Fundraising with Information Memorandum

Information Memorandum tends 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.

An Information Memorandum gives project owners the opportunity to clearly set out all relevant details pertaining to the company. It is imperative that the information is presented in an attractive, logical, and coherent way as it also reflects the companies’ professionalism, quality of management, and dedication to the sale.

A high-quality Information Memorandum is critical to ensure a smooth transaction for it promotes transparency and minimizes unnecessary correspondence. Although the purpose of this document is to motivate investment, it should not be framed as a pitch book. Rather, it should simply be considered as an informational document on the company provided during the sale process.

There is no standard template for Information Memorandums-project owners should tailor their package to present their project in the most objective but optimal light. Regardless of the presentation of your Information Memorandum, it should convey the same information to all investors in order to promote transparency throughout the selling process. This is even more imperative when the project owner has multiple interested investors.

What to include in an Information Memorandum

An Information Memorandum is the most effective way of providing a large volume of information about a company to investors. In order to increase the effectiveness of the document, project owners should include as much information as possible to reduce future correspondence on the same topic. However, this can prove to be a daunting task as the list for possible headings can be exhaustive.

When preparing the Information Memorandum, it is beneficial to assume the role of the buyer. This will help you reflect on how to structure your Information Memorandum, what to include, and how to present it. Instead of passively going through all the headings and filling out the section with information about your project , it may be best to tailor your package in a unique way that will assist buyers in understanding the finer working details of your project.

Assuming the role of the buyer during the writing process allows for the package to maintain its objective integrity all the while fulfilling its function as a marketing document.

How is the Information Memorandum for Large Projects

You don’t get a second chance to make a great first impression. Although there is no standardized template for an information memorandum, oftentimes form follows function. While the aesthetic presentation is important, gathering all the content first will assist in the natural organization and flow of the document.

At its core, the Information Memorandum provides a descriptive presentation of the project as a potential investment opportunity, however, the document intrinsically serves further functions.

The Information Memorandum must be clear, concise and compelling to:

  • Generate investor interest and build confidence
  • Lead to additional investor meetings
  • Charts, graphics, pictures and verbiage should be simple and easily read
Issues to note for Large Project Information Memorandum: Key Consideration

Preparing a professional Information (or Investment) Memorandum is a vital part of presenting your investment opportunity and can be a springboard to help close a deal especially for Large Projects in
Commercial Real Estate, Housing Development, Energy & Natural Resources, Transport Infrastructure, Agriculture and Heavy Industries.

This may be the first time a prospective buyer or investor is viewing your company or project and its offerings, so its value cannot be overstated. Investing in a strong Information Memorandum (IM) quickly establishes credibility and conveys key points about the opportunity through visual and informative

Although each Information Memorandum should be customized to the project and the market it targets, we have drawn up a some key considerations you can use to help impress your investors and to give you an edge to quickly capture their interest on your next project financing opportunity.

Key IM Documentation Issues
  1. Readability: One of the most important design components of your offering memorandum design is readability; how easy it is to read your content. Nobody wants to read a wall of text-heavy paragraphs.
  2. The Project Summary: The executive summary is often considered the most important section of the Information Memorandum and gives your reader a quick snapshot of the opportunity.
  3. Use High-Quality Imagery: People and Investors naturally pay more attention to visuals as they bring the project in more realization. Support your content with high-quality,professional photos that can help evoke emotion and add a “wow factor” to make for a stronger impression.
  4. Writing Style: Don’t neglect the writing style of your offering information memorandum. It’s valuable to think about what you want to convey, and deliver the key concepts quickly, directly and clearly. Your writing needs to be articulate, informative and straight to the point.
  5. Illustrated Maps: Present the location of your project by incorporating a visual map or aerial of the project. If you customize the design with an illustrated map (rather than copy & paste from Google), it not only fits well with the rest of the design, but also looks more professional. Use an overlay of labels or call-outs on the map to indicate nearby amenities, transportation, and corporate neighbors that surround your project.

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