Los Angeles, CA (PRWEB) December 26, 2008
Growthink, a leading Middle Market Investment Banking Firm, announces the release of a New Special Report titled: "Top 10 Private Placement Memorandum Mistakes."
Growthink's Special Report identifies the Key Pitfalls to avoid when developing a Private Placement Memorandum.
To download Growthink's Special Report, follow this link: http://www.growthink.com/investment-banking/ppm-mistakes
What Is A Private Placement Memorandum?
A private placement memorandum (PPM) is a document offering securities that are not registered with the Securities and Exchange Commission (SEC). Under Regulation D, private companies can issue private securities, so long as they comply by specific restrictions.
Why Private Placements?
With venture capital investors narrowing investment criteria, and bank loans requiring unconditional personal guarantees, more and more entrepreneurs are turning to private placements or Regulation D Offerings to raise capital.
In addition to a business plan, a private placement memorandum is necessary documentation for raising capital from multiple private investors (including "angel" investors).
The Importance Of a Professional Private Placement Memorandum
According to Growthink Managing Partner, Jay Turo, "A professionally developed private placement memorandum is becoming a necessary tool for today's entrepreneurs. Now more than ever, a private placement is one of the best routes an entrepreneur can take towards attracting growth capital."
However, as Growthink's Special Report explains, there are many ways that private placement offerings can get off track. The costs and repercussions -- both in terms of "opportunity" cost and legal costs -- of an improper private placement memorandum can be truly disastrous.
According to Growthink, a private placement offering must accomplish the following:
- Demonstrate the Unique Benefits of the Investment Opportunity
- Disclose All Risk Factors Associated with the Investment Opportunity
- Comply with All Relevant Restrictions, Especially the Marketing and Promotion of the Offering
In the Special Report, Growthink reveals:
- The Consequences of Selling Securities to Unaccredited Investors
- The Pitfalls of Using Unlicensed "Finders" to Promote Your Investment Opportunity
- When You Need a PPM to Secure an Investment, When You Don't, and When a PPM Is Not Enough
To Download Growthink's Special Report, follow this link:
Growthink is a leading middle market investment banking firm serving emerging growth companies in various industries, including real estate, Internet / software, media / entertainment, health care / medical and alternative energy / clean tech.
Since 1999, Growthink has assisted hundreds of clients with business plan, private placement memorandum, and capital raising services. Growthink clients have collectively raised $1 billion in growth capital.
To inquire about Growthink's private placement memorandum development services, visit http://www.growthink.com/investment-banking/services/private-placement-memorandum or call 1-800-506-5728 to speak with a Growthink professional.
To learn more about Growthink, visit http://www.growthink.com.