No Charge 30-Minute Consultation.
PPM Preparation Fee $4,800 - No Hidden Charges.
Financing of Fee Available w/ no interest if repaid within 6 months.
You must provide investor prospects with ‘all material information’ necessary to make an informed decision. It is up to you to decide what constitutes ‘all material information’.
This document is given to the investor and should include your business plan as an addendum. The investor retains the PPM regardless of whether they invest or not. Titling a document as a Private Placement Memorandum does not make it a PPM. It’s the contents of the Offering document that make it a Private Placement Memorandum (PPM).
*Your total Offering Documents should be 70 to 90 pages without including the business plan. See our Menu for a sample PPM front page.
The business plan is not the same as the Offering document and should not be used as a replacement for the PPM. I recommend that you make your business plan an addendum to your Offering. This allows you to modify the business plan document without needing to give your changes to the offering document preparer, saving time and money when changes are required.
The investor signs this document and returns it to you with their investment check. It also serves as a receipt and proof that you have given the investor the Offering Documents. It identifies the number of shares, units, or bonds the investor is purchasing and the price the investor pays for each share, unit, or bond.
(if organized as an LLC) The investor signs the Operating Agreement and returns it to you with the Subscription Agreement and their check. If you have someone prepare this document, they will need to familiarize themselves with the required information, which may involve reading 60 to 90 pages of information in your PPM to identify and extract the necessary details in the Operating Agreement, assuming they are aware of what information needs to be extracted. You should inquire if the Offering Document preparer will include the Operating Agreement in their documents. Check the cost with your attorney to prepare this document. It could add $2,000 or more in extra costs. The Operating Agreement is included in our fee of $4,800.
This is the first document to be given to prospective investors. The investor’s answers to these questions will allow you to classify the investor as an “accredited or non-accredited investor.” There is no reason to spend time explaining your pitch to someone not qualified to invest their funds in your project if you are using the Rule 506(c) exemption. (See menu Regulation D – Rule 506(b) and Rule 506(c)). See the Accredited Investor Form. Note: Not meeting at least one of the qualifying criteria listed means the person is a non-accredited investor. This is a disclosure requirement when filing Form D.
Have Questions? Need Clarification? Call Mr. Shields at 1 239-378-1226. Consultations are free.
If using an outside consultant, have them deliver the Offering Documents to you in MS Word. This will allow you to make timely, no-cost changes to the Offering documents. You must remember to convert the documents to PDF format and add a security password before making them available to prospective investors. Remember to keep the password in a secure location where you can easily find it in the future.
