Information Memorandum
- Buying and Selling of
Businesses
If the sales process is
initiated, and a sales mandate agreement has
been signed, the first step is to prepare an
Information Memorandum. The document should
include all important aspects of the
business, thereby enabling potential buyers
and their advisers to obtain a good first
hand impression of the investment
opportunity.
The Information Memorandum
should include the following items:
-
Company history, mission
and objectives.
-
Description of products
and services.
-
The market and the
competitors.
-
Sales and distribution.
-
Customers and suppliers.
-
Production facilities
(machines and equipment including
external evaluation).
-
Buildings (size,
utilization and external evaluation).
-
Organization (structure,
management and key staff).
-
Administrative systems
(IT).
-
Financials (accounts and
budgets).
-
SWOT analyses.
-
Price of the company.
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