Information Memoranda Template

INFORMATION MEMORANDA

CompanyAccountantSolicitorBank

Contact Person:

Name:

ACN / ABN:

Address:

Telephone:

Fax:

Mobile:

Email:

.

DisclaimerThe material in this document has been prepared for guidance only. It has been based on a variety of published material. It should not be considered as professional advice.

Company Name

The business plan is useful in detailing what will be happening in your business over the next few years and how you will be going about your business. It is not an investment proposal in itself. If you are serious about raising investment in your business you will need to prepare a more tailored document, often referred to as an information memorandum.

The information memoranda (IM) should not be as detailed as your Business Plan. That Business Plan will be presented to an investor once they have expressed interested in investing in your business. However, the IM should present the key items that will be found in the Business Plan.

Typically this document would run between 10-20 pages depending on the business. It should always remain focussed, clear, and relevant.

The following IM headings should be the headings used to form your Table of Contents.

Executive Summary

History, Background and Vision

Products & Services

Market Overview

SWOT

Operational Overview

Management & Staffing

Corporate Structure & Shareholders

Goals & Targets

Financial Plan

Risk Analysis

Investment Proposal

Appendices

Each of these headings is now set out. With each heading is a series of comments to make you think about what should be in the Information Memoranda.

Business NameExecutive Summary

Because the Executive Summary is an overview of the Information Memoranda, this section is position last in the template. When you have completed the Executive Summary, cut & paste it to the front of this document.

History, Background and Vision

Summary of the Business Plan

Suggested Length: Half a page

Products & Services

Same as the Business Plan

Suggested Length: Half a page

Market Overview

This section does not need to be as detailed as Sections 5 & 6 of the Business Plan. Combine Market Analysis and Marketing Plan into a tight 2-3 page Overview. Pick out key points such as:

Target Market

Market Share

Distribution Channels

Competition

Strategy to grow sales to achieve Financial Projections

Market Overview Suggested Length: 2 3 pages

SWOT

Same as the Business plan

SWOT Suggested Length: one page

Operational Overview

No need for the detail as set out in the Business Plan, just a good summary of the operational aspects of the business.

Suggested Length: Half a page

Management & Staffing

Same as Business Plan. Investors are looking for strong, competent management to drive the business forward. Also identify any gaps in the team and show how these will be filled. Include your organisational chart.

Suggested Length: Half a page

Current Organisational Chart

Financial Plan

Summary of the Business Plan

Suggested Length: Half a page

Investment Proposal

This needs to clearly articulate your offer to investors and will set out terms and structure of the investment. You should clearly state

Investment Vehicle (Could be company/trust)

Amount of Capital Required and Share of Business Available

Indication of the basis of the Business Valuation

Likely Minimum Term of the Investment

Exit Strategy

Rate of Return and Underlying Assumptions

Suggested Length: One paragraph

Appendices

Full Financial Forecasts

Detailed Capital Expenditure Budgets

Organisation Chart

Key Management CVs

Full product catalogues

Executive Summary

This will be the similar to the Executive Summary in the Business Plan, include the investment proposal.

Suggested Length: One page

Business Highlights

The Executive Summary (see last section of this Information Memoranda) will be the first page of your document. It should then be followed by this highlight chart, which shows sales, gross margin, and profits for the next three years. These numbers should also be mentioned within the text of the Executive Summary.

To open the highlight chart above to gain access to the source data, double mouse click on the chart itself. Then select Sheet 1 to change the relevant source data to reflect the entities own highlights. Once the source data has been modified, select Highlight Chart to display the update chart, then mouse click away from the chart to close it. It is also suggested that you change the description of the period i.e. Year 1 to be FY 2001.

Suggested Length: Half a page

Australian Business Ltd

Australian Business Angels140 Arthur Street

NORTH SYDNEYNSW 2065

Locked Bag 938

NORTH SYDNEY 2059Telephone 13 26 96

Fax 9955 8914

E-mail:

Angels@australianbusiness.com.au

Web: www.australianbusiness.com.au/angels

For further information about the Corporations Law, please visit the Australian Securities Investment Commission at www.asic.gov.au

EMBED OrgPlusWOPX.4

2( Australian Business Ltd 2003

_1052161239.xlsHighlights Chart

10030-10

1509755

20013070

Sales

Gross

Net

Sheet1

Year 1Year 2Year 3

Sales100150200

Gross3097130

Net-105570

Sheet1

000

000

000

Sales

Gross

Net

Sheet2

Sheet3

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