information memorandum

Essentially, a selling document about the target company or business which summarises all of the key investment considerations for a prospective buyer. It may also contain recent financial information, sales analyses, details of key personnel etc. Often used in auction sales.

+ information memorandum

USA

Also known as an confidential information memorandum.

This term has a number of meanings. In the context of:

• Corporate, a disclosure document delivered to potential investors in a private placement which provides information on the issuer and the securities being offered. Unlike a prospectus in a public offering, there are no specific content requirements proscribed by applicable regulatory authorities. The content included in a confidential information memorandum is typically driven by what is expected by the market. A confidential information memorandum is also used as a disclosure document delivered to potential buyers in an auction to provide information on the target company.

• Finance, also known as a bank book, a confidential information memorandum prepared by an arranger in connection with a loan syndication to prospective lenders which sets out details relating to the borrower and the financing.