INFORMATION MEMORANDA

Company

Accountant

Solicitor

Bank

Contact Person:
Name:
ACN / ABN:
Address:
Telephone:
Fax:
Mobile:
Email:

Disclaimer
The material in this document has been prepared for guidance only. It has been based on a
variety of published material. It should not be considered as professional advice.

Company Name
The business plan is useful in detailing what will be happening in your business over the next few years and
how you will be going about your business. It is not an investment proposal in itself. If you are serious about
raising investment in your business you will need to prepare a more tailored document, often referred to as
an information memorandum.
The information memoranda (IM) should not be as detailed as your Business Plan. That Business Plan will
be presented to an investor once they have expressed interested in investing in your business. However,
the IM should present the key items that will be found in the Business Plan.
Typically this document would run between 10-20 pages depending on the business. It should always remain focussed,
clear, and relevant.

The following IM headings should be the headings used to form your Table of Contents.

Executive Summary
History, Background and Vision
Products & Services
Market Overview
SWOT
Operational Overview
Management & Staffing
Corporate Structure & Shareholders
Goals & Targets
Financial Plan
Risk Analysis
Investment Proposal
Appendices

Each of these headings is now set out. With each heading is a series of comments to make you think about
what should be in the Information Memoranda.

Australian Business Ltd 2003

Business Name
Executive Summary
Because the Executive Summary is an overview of the Information Memoranda, this section is position last
in the template. When you have completed the Executive Summary, cut & paste it to the front of this
document.

History, Background and Vision

Summary of the Business Plan

Suggested Length: Half a page

Products & Services

Same as the Business Plan

Suggested Length: Half a page

Market Overview
This section does not need to be as detailed as Sections 5 & 6 of the Business Plan.
Combine Market Analysis and Marketing Plan into a tight 2-3 page Overview. Pick out key
points such as:

Target Market

Market Share

Distribution Channels

Competition

Strategy to grow sales to achieve Financial Projections

Market Overview Suggested Length: 2 3 pages

SWOT

Same as the Business plan

SWOT Suggested Length: one page

Australian Business Ltd 2003

Operational Overview
No need for the detail as set out in the Business Plan, just a good summary of the operational
aspects of the business.
Suggested Length: Half a page

Management & Staffing

Same as Business Plan. Investors are looking for strong, competent management to drive the business
forward. Also identify any gaps in the team and show how these will be filled. Include your organisational
chart.
Suggested Length: Half a page

Current Organisational Chart

J o h n S m ith
M a n a g in g D ir e c t o r
R a y B ro w n
P r o d u c t io n M a n a g e r
M a n u f a c tu r in g
5 S ta ff

P a c k a g in g
3 S ta ff

S te v e J o n e s
D is t r ib u t io n M a n a g e r
W a re h o u s in g
3 S ta ff

D e liv e r y
2 D r iv e r s

V a ca nt
S a le s M a n a g e r
S a le s S u p p o rt
2 S a le s R e p s

Financial Plan

Summary of the Business Plan

Suggested Length: Half a page

Investment Proposal
This needs to clearly articulate your offer to investors and will set out terms and structure of the
investment. You should clearly state

Investment Vehicle (Could be company/trust)

Amount of Capital Required and Share of Business Available

Indication of the basis of the Business Valuation

Likely Minimum Term of the Investment

Exit Strategy

Rate of Return and Underlying Assumptions

Suggested Length: One paragraph

Australian Business Ltd 2003

Appendices

Full Financial Forecasts

Detailed Capital Expenditure Budgets
Organisation Chart
Key Management CVs
Full product catalogues

Executive Summary
This will be the similar to the Executive Summary in the Business Plan, include the investment
proposal.
Suggested Length: One page

Business Highlights
The Executive Summary (see last section of this Information Memoranda) will be the first page of your
document. It should then be followed by this highlight chart, which shows sales, gross margin, and profits for
the next three years. These numbers should also be mentioned within the text of the Executive Summary.

$250
$200
$150

Sales
Gross

$100

Net

$50
$Year 1

Year 2

Year 3

-$50

To open the highlight chart above to gain access to the source data, double mouse click on the chart itself.
Then select Sheet 1 to change the relevant source data to reflect the entities own highlights. Once the
source data has been modified, select Highlight Chart to display the update chart, then mouse click away
from the chart to close it. It is also suggested that you change the description of the period i.e. Year 1 to be
FY 2001.
Suggested Length: Half a page

Australian Business Ltd

Australian Business Angels
140 Arthur Street
NORTH SYDNEYNSW 2065
Locked Bag 938
NORTH SYDNEY 2059
Telephone 13 26 96
Fax 9955 8914
5

Australian Business Ltd 2003

E-mail:
Angels@australianbusiness.com.au
Web:
www.australianbusiness.com.au/angels

For further information about the Corporations Law, please visit the Australian Securities Investment
Commission at www.asic.gov.au

Australian Business Ltd 2003