In Finance What Is a Ppm?

An offering memorandum, also known as a private placement memorandum (PPM), is used by business owners of privately held companies to attract a specific group of outside investors. ... An offering memorandum, while used in investment finance, is essentially a thorough business plan.

What is the purpose of a PPM?

The primary purpose of a PPM is to disclose to prospective investors the terms of a potential investment and primary risk factors involved in making the investment. A PPM also usually contains a considerable amount of information about the business opportunity, structure and management.

Do I need a PPM to raise money?

A PPM is not required for every capital raise. While Rule 506 of Reg D and the antifraud provisions of the federal securities laws mandate that issuers disclose truthful and accurate information to investors, there is no requirement to provide any specific information or disclosures to accredited investors.