Normally, an offering memorandum template should have sections for:
- Important notices
- Regulation D disclaimers
- Summary of the offering
- Company and management information
- Terms of the offering
- Plan of distribution
- Use of proceeds
- Capitalization statement
- Discussion and analysis of financial condition
- Risk factors
- How to invest and investor suitability requirements
- Forward-looking financial forecasts
- Legal Information
There may be additional sections too. The offering memorandum needs to be honest and objective about the business. For instance, it should include in-depth information about the company’s current and projected financial situations.
The offering memorandum will normally be presented as a straightforward document, such as a Microsoft Word document, divided into sections and paragraphs. It may include tables of information, particularly financial information.