What is a private placement?
Private placement memorandum documents, or PPM, is a document that is used to raise capital, either equity or debt or a mixture of both. Having a solidly written private placement memorandum (PPM) can help a company achieve its capital goals. A private placement memorandum, or PPM, is an integral part of any offering.
A private placement memorandum is most commonly used for companies seeking capital. Along with a business plan, a private placement memorandum is arguably the second most important document for entrepreneurs. Aside from the business plan, a private placement memorandum is vital to raising capital, both from the standpoint of professionalism, and for the need to protect oneself. A private placement memorandum is also referred to as 'PPM' for short. A PPM is an essential document and element to be used when seeking capital. A well-written and structured PPM benefits both the investor and the one that writes the PPM.
A private placement is the non-public sale of illiquid securities to a small number of chosen private investors. These securities are usually equity shares or debt instruments, are not publicly tradeable, and are not registered with the Securities and Exchange Commission. One performs a private placement by filling SEC Form D with supporting materials, such as registration statements, periodic reports and other forms.
The SEC's Regulation D (Reg D) describes how securities can make use of certain "safe-harbor" exemptions to circumvent registration. Sections 504, 505, and 506 of Reg D contain the descriptions of these exemptions. These exemptions detail the rules for privately offering securities without registration via a Form D filing with the SEC.
How can we help with your PPM?
We can help you write a PPM, which will be ready to present to investors. Combined with a business proposal and business plan, your PPM will ready for an investors meeting.