In these gloomy times businesses are looking outside the box for a localized injection of economic stimulus. Banks are hording their bags of government bailout money while the small business owner is forced to fend for themselves. Nothing but doom and gloom seem to infest all aspects of present and near future financial forecasts.
But there an investment niche being carved out as we speak by ultra aggressive and eager angel investors. Angel investors, private investors, micro ticket investment partnerships and other alternative financing groups are spearheading a global rally to buy into promising mid-size companies from all industry genres. The elements of a viable company prime for investment are solid and realistic growth potential, talented ‘who’s who’ executive staff with the right educational and professional pedigrees, minimal debt, a solid business plan laying out every minute intricacy that could affect growth, financial return and the exit strategy.
Another crucial element that is often overlooked but is a mandatory prerequisite for the SEC regulated exchange of cash for equity is a Private Placement Memorandum. A Private Placement Memorandum takes advantage of three powerful Regulation D Rule exemptions (Rule 504, Rule 505 and Rule 506) these are technical documents that spill the beans to the potential investor. In a PPM all the financial and industry risks are put on the table as well as stock prices, a breakdown of fund raising benchmarks and what the money will be used for etc.
A Private Placement Memorandum can be costly if you hire a law firm to custom author the package for you but there are consulting firms that will do this for as little as $5000.
If you are serious about raising capital for your company you need to add a Private Placement Memorandum to your list of necessary documents to hand off to the investors in order to get the cash you need in an expedient manner.
Want to find out more about Private Placement Memorandums, then visit Princeton Corporate Solutions site on how to choose the best Offering Memorandum for your needs.
From the supplier: The decision of ITT Hartford Group Inc. to offer 20% of its Hartford Life Inc. subsidiary in an initial public offering (IPO) should generate a net of $700 mil in proceeds, according to insurance industry observers. The transaction comes at a time when company share prices have peaked at a 15-year high. Hartford Insurance Group plans to use the proceeds from the IPO to fund the company's growth in the future.
Citation Details
Title: IPO of ITT Hartford Life could generate $700M.(initial public offering of Hartford Life Inc.)
Author: Jim Connolly
Publication: National Underwriter Property & Casualty-Risk & Benefits Management (Magazine/Journal)
Date: February 17, 1997
Publisher: The National Underwriter Company
Issue: n7 Page: p7(2)
Distributed by Thomson Gale
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