An information memorandum is an important document when it comes to selling your company. It gives any potential buyer an overview of the company that is being sold and it provides the necessary information a potential buyer may need in order to decide whether they want to pursue a purchase.
A business may have built up a lot of useful trademarks or patents over time and this may add to its value, therefore it’s important to ensure they’re part of the memorandum. Also, key members of staff who may have distinct roles and skills within the business will need to be noted together with any sales and marketing procedures (for example, key paths to market, sales funnels etc.) and actual sales figures by product or service.
Accounts is an important part of the memorandum, too and it’s important to include at least three years’ past accounts with adjusted net profit.
As you can see, this document will include a lot of detail that could be of interest to competitors, so it’s important that it’s only provided to potential buyers who have signed a non-disclosure agreement (Ventura will take care of this, as would any business broker worth his/her salt).