Preparation of Information Memorandum

Cost – 450 USD or 35000 INR. No limit on the upper side based on the need

Duration – 7 days or more

Output – 35 page slide or more/ Video from 45 seconds

Who gets benefited?

Existing companies

How to book this and what is the process?

Book your convenient time to discuss with us. We would gather financial models, valuation, type of IM required, business type, etc during the call with you. We can create more attractive animations or video presentations based on the budget. Once we receive the information along with the payment, we will submit the IM in 7 days (minimum) and also discuss in detail the pros and cons of the IM.

Benefits of information memorandum

One of the main purposes of an information memorandum is to provide the information to investors to understand the business and to review the opportunity. The information contained in the memorandum will help investors decide if they want to invest in the business.

Slide contents

Executive Summary

  1. Key Business Products and Service Offerings of the Company
  2. Financial Overview – Revenue, EBITDA Margins, Cash Flow, profitability
  3. The Nature of the Transaction
  4. Investment Rationale

Investment Thesis

  1. The company acts as a platform for market entry and growth
  2. The kind of partnerships it has with leading players, providing best-in-class services and the opportunity to build on them for the acquirer
  3. Upside opportunities from process optimization, cross-selling, cost optimization, automation, etc.
  4. Blue-chip clients and longstanding relationship with them
  5. Strong Order Book
  6. Experience in management and strong capabilities in business expansion
  7. Strong position locally with an international foothold
  8. Potential for M&A synergies

Overview of the Market size

  1. Top players in various business segments
  2. The trend of various product lines
  3. Growth trends in the market and the driving factors behind them
  4. Mapping of the competitors with the “target’s ranking”

Overview of the Target Company (take over assignments)

  1. Year of establishment
  2. Company description
  3. Business segments and their capabilities
  4. Revenue, EBITDA, and net income
  5. Employee details
  6. Customers, clients, and users
  7. Place of headquarters with different office locations
  8. Recent news about the company

Products and Services

  1. Detailed analysis of the products and services offered by the company.
  2. For the product categories, the company will include a list of the products, the target segment of each product, etc.
  3. From a service perspective, it shows the company’s various service offerings, the capability of the company, the end-to-end process of the services it offers.

Revenue Profile

  1. According to Geo, by showing the information in this manner, buyers/investors can see where the major revenue comes from and if it is aligned with their business strategy.

Employee Profile

  1. Segregation of the employees is shown so that the buyer/investor has a fair idea of the existing personnel mix and can plan changes that will help them achieve cost optimization.
  2. An employee profile can be shown in several ways, including by Function, Qualifications, Geography, Pyramid, etc.

Customer Profile

  1. For any acquirer/investor, it would be important to know what kind of customers the company would be serving in the future.

Financials – Historical and Projections

  1. From a valuation perspective, it gives a detailed analysis of the profit and loss account. It contains actual financial information from previous years, as well as financial projections by the management of the target company. 
  2. Since the target/investor company is preparing the projections, it will try to show the company in a very positive position and make it attractive in order to achieve a higher valuation.

Management Structure

  1. A brief about key personnel of the company, highlighting their role(s) in the company, years of experience, previous work experience, etc.
  2. This section is extremely important, and also one of the most matter-of-fact sections.  It typically includes each person’s photograph, name, title, and a multi-paragraph description of what they do, their background, and their claim to fame.
  3. An organizational chart may also be useful in this section to illustrate the hierarchy and reporting structure
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