Development of Information Memorandum

Development of Information Memorandum (IM) is required at the initial stage of Sell side (Complete / Partial Stake) in Merger & Acquisition Transaction. The information memorandum gives the opportunity to tell the buyer about the positive aspects of business and state the reasons your business is an attractive investment prospect.

It is the first major written description of the business your eventual buyer will have, so it’s well worth investing considerable time and effort into making sure the right message is conveyed. The exact contents of the memorandum may vary from company to company; however, an effective one will typically contain the following key pieces of information:

• History of the Company
• Strategy, Mission, Future roadmap
• Industry Experience
• Competitive & Regional Skills
• Locations
• Products & Services
• Industry & Market Analysis
• Partners and Key Customers
• Key Managerial officials and Experience
• Transaction Proposition and Objective
• Media Coverage & Certifications
• Financial Analysis (Historical)
• Going forward Projections
• Key Risks, Mitigation Plans, SWOT Analysis

The information memorandum will largely depend on the size of your business, information available / provided by the Management and resultant will often necessitate a longer detailed memorandum.

The main benefits that are derived from the Information Memorandum is the speeding up of the sell side transaction, creates interest of buyer and helps in decision making.