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EU-PPM
A European private placement memorandum (EU-PPM) is a disclosure document that includes relevant disclosures about your company that allow investors to weigh the risks involved with giving your company an investment. While many European memorandums share similarities, they are all different due to uniqueness of each deal and the uniqueness of each investment. They should contain information on the business, financial information, legal structure and ownership information, and information related to the offering itself. Information must also be included demonstrating that certain securities regulations do not apply.
Insurance
You should consider a memorandum as an insurance type expense. The EU-PPM and EU-CIM can be used to thwart off frivolous claims from both investors and grant providers. It is not a foolproof defense by any means, but it makes it harder for a potential litigant to win a claim and it improves your defense.
Risk
A European memorandum presents an opportunity both to sell your privately offered securities to European investors and to protect your companie’s interests. It is important to keep in mind that, while you do want the document to help compel investors to move forward, if they do so without a full understanding of the risks involved you open the door to legal action and investigation by the European financial services regulatory authority.
Much in the same way that a prescription drugs must explain risks in public advertisements, securities must do the same. While health and life is at stake with prescription drugs, the savings and financial security of investors are at stake in a private placement due to the volatile nature of the returns they can expect. You should be prepared for the worst in terms of lawsuits, even while hoping for the best.
The risks involved with investing in your company must be laid out carefully in a private placement not because of a government requirement to do so. Disclosing these risks clearly before investors part with their cash is the best way to protect your firm from lawsuits claiming you defrauded or misled them. General risk factors are common for most or all private placement offerings. A disclaimer is needed in your memorandum. Furthermore, investors may not be able to sell the securities for a given holding period and must be made aware of this.
Specific risk factors should touch on the challenges your firm faces. These include challenges to its industry, customers, strategy, and management. For example, if there is a chance that key management members will leave the company and cause a need for a costly search for a replacement, this should be covered. If competitive threats may derail the plans of the business entirely, this should certainly be mentioned.
Covering risks specific to the firm reduces the chances that an investor will cry foul and file a lawsuit if these worst case scenarios occur. If you are sued, the EU-PPM and EU-CIM serves as a clear record that you communicated the risks from the outset.
ICMa docs
Writing
The process of writing a memorandum requires necessary knowledge, skills and experience. It is also a time intensive process. Save your precious time and let our team of highly skilled professionals writes your memorandum. This way you are able to spend more time on the actual start or growth of your organisation. A confidential information memorandum (EU-CIM) or private placement memorandum (EU-PPM) written closely with our business associates gives you the opportunity to attract a great amount of investment in your company.
Icma Docs is a high-level group of experts in drafting compelling and groundbreaking business documents for Start-Ups, Scale-Ups, Companies, and Organisations. Our service is tailored to businesses that are entering a new phase or want to grow beyond their borders. We are able to professionally put your memorandum on paper in a well organised structure. This can be done in the form of a whole memorandum, but it is also possible to write a specific portion – for example, the financials, marketing strategy or swot. If you already own a European memorandum, then we are the suitable partner to rewrite your memorandum in collaboration with our highly skilled professionals into an amazing document.
Icma Docs is a key player in drafting European feasibility (case) studies, conducted to evaluate viability, practicality, and potential success of a proposed Project, Start-Up in an early stage, Scale-Up witch a post product or service, Established Business in need for expansion capital, or Research Program before committing significant time, energy and resources. It assesses whether an idea or investment is technically, financially, environmentally, operationally, legally possible and future-proof.
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ICMA is a private foundation under the Dutch Civil Code, headquartered in Rijswijk, the Netherlands. With offices in Barcelona, Spain and Groningen, the Netherlands.