If you’ve got an idea, a plan, and a dream to raise some capital for your business, syndication, or fund, you’ve probably heard about Private Placements and PPMs (Private Placement Memorandums). And if you’re in this ballpark, you’ll definitely want a PPM lawyer on your team. But when’s the right time to bring one in? Let’s break it down.
1) What’s A PPM Lawyer Anyway?
Before we jump into when you should hire a PPM lawyer, let’s get clear on what they do. These folks are specialists in creating a PPM, which is like a guidebook for potential investors. It tells them what they’re getting into, the nitty-gritty about your business, and any risks they should know about. It’s a must-have if you want to stay on the right side of the law when you’re looking for funding from investors.
2) What Do You Need?
The first step in figuring out when to bring in a PPM lawyer is to take a look at your needs. If you’re thinking about a private offering (raising capital from investors), you’ll want a lawyer who knows the ins and outs of securities laws. The penalties for getting it wrong can be serious, including heavy fines or even criminal charges. If a private offering is on your horizon, it’s time to think about hiring a PPM lawyer.
3) Are You Financially Ready?
A private offering isn’t a budget operation. There are costs involved, including the fees for your PPM lawyer. So, another question to ask yourself is whether you’re financially ready to take this step. If you’ve got the funds to cover the legal side of things, it’s a good time to start looking for a PPM lawyer. Costs range from a high of $50,000 or more for a “BigLaw” firm to a mid-range of $12,000 to $20,000. There are vendors (and maybe even lawyers?) who are cut rate shops selling services for $5,000 or less, but this is just like going to a cut rate doctor for heart surgery. Don’t do that.
4) Timing Is Everything
Putting together a PPM isn’t a quick job. It needs time, careful thought, and a good deal of legal know-how. So, you’ll want to bring in a PPM lawyer well before you plan to make your offering. This gives them time to get to know your business, spot any potential risks, and put together a PPM that covers everything it needs to. A good rule of thumb is to engage a PPM lawyer at least two months before you want to start raising capital.
5) Navigating The Law
Securities laws can be a real headache to navigate. If you’re at the stage where you need to start figuring them out, you’ll want a PPM lawyer to guide you.
6) Talking To Investors
Investors are the lifeblood of any private offering. As soon as you start thinking about reaching out to potential investors, you should have a PPM lawyer in your corner.
They can help you figure out what you can (and can’t) say to avoid running into trouble with the law.
7) Wrap Up
So, when should you hire a PPM lawyer? Essentially, as soon as you’re ready to take the plunge into raising money for your business, syndication, or fund. Putting together a PPM isn’t just a legal hoop to jump through—it’s a crucial tool for attracting and securing investors. And it needs a lawyer who knows their stuff.
If you’re ready to make your private offering a reality, the time to hire a PPM lawyer is now. They’ll make sure you’ve got the legal support you need to make your offering a success. And remember—the key to a great private offering is preparation, and that starts with the right legal help.
If You Want To Talk To An Experienced PPM Lawyer Now, Please Use The Following Link To Book A Free Initial Consultation:
PPM LAWYERS was organized in 2005 to bring the best legal talent, business experience, and financial expertise together under one roof. We are organized and dedicated solely to preparing the most professional and complete PPM for your business.
Since our founding, our PPMs have been successfully used by startup companies across the U.S. to raise many millions of dollars for their businesses. And, every PPM from PPM LAWYERS is drafted by an experienced corporate securities lawyer and customized specifically for your business. We are committed to helping you raise the money you need and providing you with legal excellence in PPM drafting. Now, you can raise capital with confidence.