Sunday, November 24, 2013

It Is Important That You Know What Is A PPM Before You Seek The Help Of A Good Attorney

When you come across the word PPM the first thing that comes to your mind is what is a PPM? A PPM which is also known as an offering memorandum is a document that provides the important terms of securities that is to be offered in a private placement.  Generally a PPM resembles the content and structure of a business plan. It is a kind of formal description for an opportunity of investment which is written in order to comply with various federal securities regulations.  If a PPM is prepared properly then it gives specific and proper information. 

If you know properly what is a PPM then you would know that a PPM has several sections, which requires specific information related to your business, transactions and issuance so it needs to be written properly in a professional manner. A lot of question arises in this regard as to whether you need a good attorney to write a Private Placement Memorandum or not. There are cases where the attorney only helps you by providing little inputs but does not completely draft the memorandum on your behalf. As many people say that most part of the PPM is needed to be written by you and the attorney can only add value to the process, only after you have written a bulk of the PPM. He can only help you in dealing with certain sections only. It is important that one should have a good solid understanding of the various regulations before embarking on the legalities of the PPM.

If you gather good knowledge about what is a PPM you would know that PPM is mainly written for venture capital firms in order to cater to equity control and technical audience. On the other hand a PPM can also be written with the help of an attorney for private investors and small private equity firms who sometimes want to be in and out of a transaction. These firms typically invest in companies that are going public in as short of a time as possible so for them the PPM is very effective and essential. The PPM provides details of every aspect of the business as well as of the business investments and transactions. So it is very important and essential that you have good knowledge about the PPM or else you can always take the guidance of a good attorney in order to create a good PPM. 

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