What goes into the PPM? How to generate a Term Sheet?
My client called today saying that his investor has asked for his Private Placement Memorandum (PPM). We discussed what should go into his PPM in addition to the business plan. http://wistechnology.com/articles/3935/ The client is well prepared with a good business plan including an investor risk section.
One of the items we discussed was the term sheet disclosing what the company is offering to investors in exchange for their investment. Here is an excellent site with term sheet examples and a term sheet generator: http://learnvc.com/2009/04/updated-example-term-sheets-and-term-sheet-generator/
After putting together the PPM including the term sheet, we will take the package to his attorney. The attorney will review this legal document and make sure everything is handled properly.