PPM

Daily we hear people refer to a PPM as a private placement memorandum, or some other name. In fact, we often here multiple names for a PPM which can lead to confusion.

So, what is a PPM? How come people simply refer to a private placement memorandum as a “PPM“. And what other names for a PPM are they? We will try and answer this important question below.

PPM = Private Placement Memorandum

The most common usage of the acronym PPM is to refer, shortly, to a private placement memorandum. A”private placement memorandum” can be defined as a “private” document, where one is seeking to “place” his/her stock with an investor, for capital, and the document that explains this “private placement” is the “memorandum”.

OM = Offering Memorandum

If the PPM is referred to for short as the private placement memorandum, the OM is referred to as the “offering memorandum“. Thus, the “offering” is what the company is offering to investor for their capital, while again, the “memorandum” is the document outlining the terms of the offering itself. Today, in most investment circles, many refer to the private placement or private placement memorandum, or even the private placement memorandum template as the “PPM“, not the “OM“.

The OM is somewhat considered “old school”, while usage of the term PPM is “new school”. Either is correct.

So What Should You Call the PPM Document When Approaching Investors?

There are many answers. You just want to make sure the person considering the investment knows what he/she has. You can the PPM the private placement memorandum. Or say something like “i would like to submit my private offering documents to you. Or, I have an offering memorandum that I would like to show. Avoid saying “I have a PPM. Do you want to see it?”.

While some investors will obviously know what a PPM is, others may not. Thus, to satisfy the broadest amount of private placement investors, saying something like “I have a private placement memorandum“, or “I have an offering memorandum“;both are a safe way to go about seeking private placement capital.

For any questions on PPM templates, custom private placement memorandum writing, or anything related to approaching investors for private placement capital, call or email us.