In many instances, an offering memorandum – also commonly known as an OM or an “offering memo” – is something which is necessary in order to raise a certain amount of capital from corporate investors. This document is also one of the most important documents to hand to a company investor, in addition to the company’s business plan.
While the main purpose of a company’s business plan is to detail the company’s model and how the company plans to make money, the offering memorandum is a document which lays out what the company’s investors will obtain in return for their overall investment in the company. Once an offering memorandum is given to an investor, he or she can then choose to invest in the company based upon the financial information contained therein.
For more information about drafting a complete offering memorandum, you should contact the Silicon Valley corporate attorneys at Structure Law Group today.