Information Memorandum (also called Sale Memorandum) is documentation prepared for potential buyers to receive concise insight into a company put up for sale. It contains salient information about the company, such as its: History, Ownership, Location, Structure, Operations, Industry and market, Products and services, Customer base, Assets, Employee data, Financial performance, Reason(s) for the sale, Why the sale makes a good investment, Turnover, Potential, Patents and trademarks (if any), and Asking price and terms.
The Information Memorandum should impress and attract potential buyers, heighten their interest in the sale, make it competitive and, as a consequence, boost the valuation and sale price of the company. It must be entirely truthful, but it must also be compelling and present a strong case for the potential of the enterprise in question.
Given its confidential nature, it should only be given to pre-qualified potential buyers upon signing a non-disclosure agreement (NDA). The Information Memorandum should be exceptional in order to generate much interest from potential buyers without releasing important company information at this stage. It is a balancing act that must be gotten right.
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In the early stages of such an important undertaking, it can be a bit of a moral maze: who do you trust?
Firm Gains gave me confidence with detailed advice and support. I would recommend their services to other entrepreneurs seeking to buy a business.Mr T Washington , Founder
I found it much easier to get my head around a business sale this way than talking to my accountant. You speak a language I understand!
Even though the whole process of selling seems daunting, I’ve got more confidence that I’m heading in the right direction.Mrs T Boothe , Founder
Thank you for your email and the excellent advice provided earlier this week. It was immensely helpful and has helped me to plan my future direction for the practice.
I would have no problem whatsoever in recommending your services in the future.Mr & Mrs Halldron , Co-Owners
Firm Gains were recommended to me and I was not disappointed. They were efficient, helpful and effective responding quickly to my request with all the facts that were needed to ensure a stress-free dialogue with our buyer.
What really helped was the advice over and above the valuation, which was immensely valuable and gave me the confidence to proceed. I would not hesitate in recommending them.Mr C Waite , Founder
We found the advice invaluable, which was clear and concise and felt your firm had a good handle on market trends and business sectors.
With also the backup of the secondary services, there was a feeling you had all bases covered if we wanted to proceed with our exit via Management Buy Out (‘MBO’).Mr D Wills , Director
Thank you for your advice. I was just about to sign up to the wrong kind of business agent for a company of our size, but read your post just in time.
I found a more serious partner, with experience in our industry and we’re already using the same language.Mr F Summerscale , Managing Director
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Firm gains understood our situation quickly and clearly and were anything but ‘pushy’. Refreshing compared to what we’d experienced before.Mr C Hutcheson , Managing Director