What does an Information Memorandum Cost?

Good question.

Answer; It varies. Why?

The best analogy that I can come up with is this. If you look under the hood of a 1980 Ford and open the hood of a 2019 Mercedes Benz, what’s the difference?

The difference is complexity. That is, more moving parts.

In writing an information memorandum, the key task is to describe the business model with all its moving parts and all the risks associated with the business.

Like a car, more moving parts means more risks that something may go wrong. In am information memorandum, that means, more ground to cover and explain. With each moving part, there is more risk to cover, explain and possibly mitigate.

Other areas where a matter may get complex include;

• Corporate structures; creating a structure with multiple entities.
• Investment instrument; multiple classes of shares each with varying rights.

The least expensive information memorandum to produce is for a start-up set up under one entity, offering one product to one market and offering ordinary shares in exchange for the funds it seeks. We move up the fee scale from there.

Despite its simplicity, I hope this explanation sheds some light.

Theo Afkoudias

For assistance please contact The Financial Writing Company 1300 477210.