Business Plan is a document prepared to raise funds for the company or project in question. Similar to the Information Memorandum (the "IM"), it describes the existing business (if there is one) in detail, however a large part of the document describes the amounts, timings and on what the funds once raised will be spent.
A Business Plan is more forward looking, with particular emphasis on the company’s growth and how it will be achieved. The financial section will focus in detail on future revenue streams, costs and future profitability of the business.
The Management Team’s credentials, track record and experience will be emphasized to give the potential funders confidence the monies loaned/invested are in safe hands.
In addition, the “Market Overview” section is likely to be more detailed compared to an IM, to convince the reader of the market opportunity, for which the funds are being raised. There will also be a section on exit routes for the potential investors.
Similar to the IM, the structure will vary, however a typical business plan would include the following sections:
The same process applies to Information Memorandums, albeit the recipients are potential acquirers, as opposed to funders.
A Business Plan is more forward looking, with particular emphasis on the company’s growth and how it will be achieved. The financial section will focus in detail on future revenue streams, costs and future profitability of the business.
The Management Team’s credentials, track record and experience will be emphasized to give the potential funders confidence the monies loaned/invested are in safe hands.
In addition, the “Market Overview” section is likely to be more detailed compared to an IM, to convince the reader of the market opportunity, for which the funds are being raised. There will also be a section on exit routes for the potential investors.
Similar to the IM, the structure will vary, however a typical business plan would include the following sections:
- Executive Summary
- Investment Highlights
- History and Background
- Management Team
- Market Overview
- Existing Products and Services
- Planned Product and Services
- Financials
- Exit Routes
- Appendices
The same process applies to Information Memorandums, albeit the recipients are potential acquirers, as opposed to funders.
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