![]() In terms of granularity and transparency, however, the presentation must enable the potentiak buyer to carry out first essential analyses and to identify opportunities and possible risks (e.g. Usually, the clear names of customers are not mentioned in the info memo – in particular not in connection with revenue figures. The next chapters describe in detail the business model and the main points regarding products and services, customers and sales / route to market, the value chain, the organisation as well as the management and the team. The “Key investment highlights” include a concise compilation of the attributes of the target that make it attractive and unique. which companies, contemplated sale of any company real estate) of the intended company transaction are set out. ![]() succession for reasons of age) and scope (e.g. In the introduction of the info memo, the main issues of the subsequent chapters are summarised as part of an executive summary (here named “at a glance”). Below, you can find an illustration of such structure. In most cases, however, the preparation is based on usual and established structures that have proven to meet the expectations and needs of the addressees. Subsequent process steps and the provision of further information in an M&A process are not further discussed in this article.Įvery info memo is as unique as the company to be described and pitched therein accordingly, in the preparation process, every info memo is tailored individually to the features of the respective target. The requirements regarding the structure and the content of the indicative offer are set out in a process letter and made available to the potential buyers together with the info memo. ![]() After a non-disclosure agreement (NDA) is signed, the prospective buyers are provided with the info memo, in order to enable them to make an indicative offer for the acquisition of the target. In a typical, structured M&A process, an anonymous is sent to potential buyers in order to determine their basic interest in the acquisition of the target – in particular as regards the business model and the financial profile. In the final step, the info memo is approved by the client. In doing so, he brings to the table his expertise and experience regarding the expectations and requirements of potential buyers. In this period, the M&A advisor requests plenty of information and asks numerous questions during workshops on the equity story, strategy and business plan. Usually, it takes about several weeks to prepare an IM. The M&A advisor coordinates and is responsible for the preparation of the info memo with the involvement of and in close consultation with the client. Normally, the shareholders of the target company engage an M&A advisor who comprehensively assists them in conducting the entire M&A process. Thus, the info memo constitutes the foundation that gives potential buyers – at an early stage of the M&A process – the possibility to thoroughly work their way into the business model of the target and enables them to decide whether they want to participate in the further process. It enables the sell-side to comprehensively present the target and to explain why the purchase of the target is particularly attractive to the prospective buyer (equity story). In M&A processes, the Information Memorandum (in short: info memo or IM) serves to provide potential buyers with essential information about the company for sale (target) in a well-prepared form. We are not attempting to provide expert legal precision, review linguistic nuances or present an exhaustive definition, but rather to give or refresh a basic understanding of a term and provide some useful tips from our consultancy practice. In this ongoing series, a number of different M&A experts from the global offices of Rödl & Partner present an important term from the specialist language of the mergers and acquisitions world, combined with some comments on how it is used. Insights M&A Vocabulary – Experts explain: Information Memorandum ![]() Rödl & Partner World Market Leader Index Germany.
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