Offering Memorandum

The Offering Memorandum is one of the most important documents prepared in the sales process, because it provides a prospective buyer with the information to generate an initial offer. Typically, the book will not include a purchase price for the business, but will provide the prospective buyer sufficient information to appropriately value the acquisition. It is extremely important for the OM to clearly articulate all of the company's attributes in order to fetch a premium valuation.

Areas that should be described in detail include:

  • Customer diversification;
  • Barriers to entry from competitors;
  • Ability and plan to achieve future projections;
  • Future growth opportunities;
  • Strength of management team;
  • Scalibility of operations; and
  • Opportunities in the external market place.
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