Mina Mar Group

Private placement memorandum also known as offering memorandum is the most important document for any private company that is raising capital. Such sale of stock, bonds or other securities directly to selected private investors is called private placement. Unlike company that is raising capital via traditional IPO and becomes publicly traded, company that utilizes private placement remains private. Private placement memorandum can be compared to prospectus in public offerings and its purpose is to provide prospective buyers with needed information. Offering memorandum gives in depth look at business and its operations explaining nature of business, terms of investments, potential risks and management among other things. Sometime it can be compared to thorough business plan but there is a difference. Business plan often has marketing purpose created to promote the company and attract investors. On the other side private placement memorandum is more factual and descriptive in t...

We have already discussed benefits of an initial public offering. It enables you to raise huge amounts of capital, attract more attention from media and investors. When you go public shares of your company are like currency which can be traded which means that you can raise more capital by selling more shares.  Many of our clients who wish to go public also need private equity financing along way.  Even though our IPO process only takes between four and six months, companies need operating capital in order to continue building their businesses while waiting for the various IPO processes such as the SEC, FINRA, market makers and more. In simple terms private equity financing means that some individual or firm will invest in your company for a percentage of business. For a long time private equity investors only did business with large multi million dollar companies. Recently they have expanded into small business financing. It has its advantages from traditional l...