5 Tips for Writing a Kick-Ass Investment Memorandum

Writing an investment memorandum is an essential process many go through.


Depending on what type of funding you are looking to raise, there are key differences between what you should and should not include. 


A useful information memorandum for equity investors needs to give a good overview of the company and financial modeling.


Over the past 8 years, we have produced over 400 successful debt IMs. Read on to learn 5 actionable tips for writing your best one yet. 



1. Make it easy to understand  

Clarity is key. Taking your time and using language which funds understand is very important. Their top priority is getting to grips with the opportunity and business plan.


By allowing them to scan proposals and find answers to pressing questions quickly, you’re increasing the likelihood of getting those all-important offers!


The problem with including weighty information and jargon in any business communication is:   

  • Confuses and leads to misinterpretation. 
  • It slows readers down; they lose interest and drift away. 
  • Raises questions of camouflage as expectations are neither raised nor lowered. 


Be warned. If you fill your investment memorandum with jargon, you might attract the wrong type of attention. Keep things simple, don’t put people off by over-complicating things. 

Investment Memorandum



2. Optimise the layout

Include a concise company and market overview. This should include a summary of your products and services, competitor analysis, your target audience as well as your financial model.   


Use graphs and charts to get key points across clearly, all the while making your IM more visually appealing at the same time. This is especially useful for financial data. For example, using a bar chart to share revenue growth, highlights how fast you’ve grown and it’s easier to read than a standard table. 


Don’t be afraid to show yourself. Include an overview of the management team, it makes it more personal and gives you a chance to highlight previous, relatable experiences and unique credentials. 



3. Be transparent - outline the risks

No one likes surprises. So, rather than the fund finding out risks during due diligence, lay them out early on in your IM.  



4. Include the terms of the investment

A good thing to do is to outline the objectives of the finance project. Be clear on what the money will be used for, whether that’s growth, acquisitions, or working capital. 

Information Memorandum

5. Get the financials right

This is the most important point and is the key to getting high-level term sheet offers. You must include a detailed financial statement which includes:  

  • Gross sales 
  • Cash flows 
  • Revenue 
  • Profit and Loss 
  • Margins 

Use historical data from at least the last 2 years as well as a forecast for the next 5. This enables potential funds to work through their metrics and decide if you are lendable. Be precise. 



Final elements to consider

Now you understand the essentials needed to create a brilliant debt Information Memorandum. As you can see, getting all the information alone can take a very long time, and, that’s not even touching on the design and distribution of it. 



Luckily, you don’t need to worry about writing an IM when you appoint a broker like us. 


Not only do we match you to the most suited funds from our vast network of international lenders, but leveraging our experience, we will create an IM guaranteed to bring you the best offers.   


If you have experienced difficulties writing your IM or attracting debt funds, talk to us today. We are debt experts who have 8 years of experience funding companies just like yours.


Find out who we work with here