If you are reading this article then you are probably aware opinions vary as to the effectiveness of Private Placement Memorandum templates. Some “experts” will lead you to believe you are much better off spending upwards of $18,000 to have a securities attorney prepare your entire Memorandum. Our experience tells a very different story.
Private Placements are an approved form of documentation for raising capital under Regulation D. The Regulation D programs were designed to provide an exemption to sell securities in a private capital raise without registering the securities. The process of securities registration is complex, time consuming and expensive. Without the Regulation D exemption, many businesses would not have a viable HULT PRIVATE CAPITAL option for raising capital.
The PPM document makes it much easier and less expensive for private companies to access funding and raise capital. However, creating a Memorandum from scratch is near impossible. PPMs are long, complex legal documents and you simply cannot know what needs to be included if you haven’t done it before.
This is why templates are useful, the complex framework has already been organized and written for you. All you need to do is download the template and then follow instructions to easily customize for your business.
High quality templates are the product of real experience raising real capital, while providing full protection under the Regulation D exemptions.
Templates do not seek to displace the legal profession – attorneys provide valuable services. On the contrary, in order to ensure your Private Placement complies with federal and state regulations businesses you should seek a legal review of their completed PPM before soliciting investors.
However, by first completing the draft PPM yourself, and then seeking a qualified attorney review, you can dramatically reduce your costs. Our clients report saving $17,000 or more compared to having the attorney complete the entire PPM.
Using our proven templates, you can customize your own Private Placement for a fraction of the time and cost because the hard work has been done for you. High-quality templates will improve your chances to win funding.