Private Placement Memorandum Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 4,123 reviews

Jump to Section

Need help with a legal contract?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

What does a private placement memorandum cost? Companies in search of potential investors may ask this question. Let’s explore private placement memorandum costs and review some general information about private placement memorandums and how they are used.

How Much Does a Private Placement Memorandum Cost?

A private placement memorandum, often abbreviated as PPM and sometimes called an offering memorandum, is a legal financial document that businesses use to attract potential investors to their company.

A PPM is used in private transactions when securities are sold using an exemption from registration. The purpose of the private placement memorandum is to provide the investor with information about the company like:

  • Company description
  • Terms of the offering
  • Risks of investment
  • How the investment will be used

Private placement memorandums provide a company with many benefits and are often used by smaller startup companies to raise capital quickly. When using a PPM and engaging in a private transaction, the issuer is not subject to SEC (US Securities and Exchange Commission) regulations.

Using offering memorandums or PPMs also afford companies these additional benefits:

  • Lower costs
  • Confidentiality
  • Access to a large pool of investors
  • Stability of a private placement market
  • Flexibility

If your company is considering using a private placement memorandum, it is recommended you consult with an attorney knowledgeable in this area of law.

Private placement memorandums vary depending on the exemption from registration used, the target investors, and the complexity of the offering terms. A private placement memorandum must also comply with the conditions set out by the Securities Act of 1993.

An attorney who has experience with private placement memorandums will know what your PPM must include based on the factors surrounding the offering and ensure that the PPM abides by all applicable laws.

According to ContractsCounsel’s marketplace data, the average cost of a project involving a private placement memorandum is $1,150.

What’s Typically Included in a Private Placement Memorandum

Private placement memorandums will vary depending on several factors like type of exemption, potential investors, and terms of the offering. However, most PPMs will follow this basic structure:

  • Investors’ Notice. The beginning of the PPM should inform investors about the important disclosures included in the private placement memorandum. This could include the degree of risk, restrictions on securities transfer, and company rights. It is common to follow these disclosures with current SEC rules and regulations.
  • Executive summary. This section is a letter to the investors that summarizes private placement memorandum but is also used to grab the attention and interest of investors. It is important to keep this section concise, so it is memorable. Consider sharing the top three points your investors need to know.
  • Offering Terms Summery. The offering terms are usually drafted in the form of a term sheet. It should include the capitalization of the company before and after the offering. Other terms you may find in a PPM
  • Risk Factors. Every investment comes with risks and the investor will expect to see these risks laid out in the PPM. The private placement memorandum can include common general risks, and risks that may be unique to the issuer and its securities.
  • Company and Management Description. It is common for an investor to want some background information on the company they are planning to invest with. This section allows the company to share their history, the products and services they offer, their performance history, future goals, competition, advertising and marketing strategy, and any other material information an investor may want to know.
  • Use of Proceeds. The private placement memorandum must include how the company plans to use the net proceeds raised by the offering. If the proceeds will be used for more than one purpose, the amount intended for each purpose should be recorded.
  • Description of Securities. This section describes the rights, restrictions, and class of securities offered.
  • Subscription Procedures. Subscription procedures are the instructions for investing in the offering.
  • Exhibits. Exhibits are any supplemental information and documents the company may want to provide investors. Some examples of exhibits are copies of investment contracts, financial statements, the company’s organizational documents and licenses.

Private placement memorandums can be customized to fit the needs of the issuing company. It is important to discuss additional terms with your attorney. A lawyer experienced in drafting private placement memorandums will know what your PPM needs to include to entice investors and be legally accurate.

Meet some lawyers on our platform

Jonathan M.

1 project on CC
View Profile

Albert M.

9 projects on CC
View Profile

Karen S.

1 project on CC
View Profile

Jose P.

1 project on CC
View Profile

Examples of Private Placement Memorandum Projects

Private Placement Memorandum Drafting Service

Private placement memorandums are important legal documents. They can be the difference between a startup gaining investors or losing potential funding. For this reason, companies who wish to use private placement memorandums should hire an attorney for drafting services.

If you hire a lawyer to draft your private placement memorandums, first you will meet with the lawyer to discuss your business and the terms you want in the PPM. Using this information, the lawyer will draft a private placement memorandum that adheres to all legal regulations that your company can use with potential investors.

Private Placement Memorandum Review Service

Sometimes, a company may have an existing private placement memorandum but due to changes in the company or target investor, the memorandum needs to be changed or updated.

Instead of hiring a lawyer to draft a completely new private placement memorandum, a company can hire a lawyer for review services. A lawyer can read over the memorandum and suggest changes and updates to fit the company’s needs.

Drafting Private Placement Memorandum Costs

Hiring a lawyer to draft a non-compete agreement will come with costs. The lawyer will charge for any time spent working on the private placement memorandum which can include consultations and revisions.

ContractsCounsel’s marketplace data shows the average private placement memorandum drafting costs are $3,328 across all states and industries.

Private Placement Memorandum Review Costs

Review services will also incur legal fees because the lawyer will use their time and legal expertise to ensure the private placement memorandum includes all necessary provisions.

According to ContractsCounsel’s marketplace data the average private placement memorandum review costs are $800 across all states and industries.

How Do Lawyers Charge for Private Placement Memorandums?

The two most common fee structures used by lawyers are hourly rates and flat fee rates.

Hourly Rates for Private Placement Memorandums

Hourly rate fee structures are one of the most common fee structures used by attorneys across all industries. When billing at an hourly rate, a lawyer will charge their client at a fixed hourly rate for all work done on the case or project.

The marketplace data for ContractsCounsel shows the average hourly rate for a private placement memorandum lawyer ranges from $250 - $400 per hour.

Flat Fee Rates for Private Placement Memorandums

When a lawyer is hired for a specific task like drafting a private placement memorandum, they may choose to charge a client using a flat fee rate. In a flat fee payment structure, attorneys will provide a flat fee price to the client for the proposed services.

One benefit of flat fee rates is that the client knows upfront how much legal services will cost and will never be surprised by a large bill at the conclusion of a case or legal project.

ContractsCounsel's marketplace data shows the average flat fee rate for a private placement memorandum is $1,150.

Get Help with a Private Placement Memorandum Project

Do you need help with a private placement memorandum? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Howard B. on ContractsCounsel
View Howard
5.0 (1)
Member Since:
July 29, 2022

Howard B.

Managing Member
Free Consultation
Tulsa, Ok
10 Yrs Experience
Licensed in OK
University of Tulsa

Berkson is a dedicated, practical, and detail-oriented attorney licensed to practice in every state court of Oklahoma and the United States Northern and Eastern District Courts. He graduated from the University of Tulsa College of Law with Honors. While there, he received awards for highest grade in trial practice, legal research, and civil procedure. He was also the Executive Notes and Comments Editor for the Energy Law Journal, the official journal of the Energy Bar Association in Washington, D.C. The Energy Law Journal is one of the few peer-reviewed journals in the legal profession. Prior to becoming an attorney, Howard Berkson held executive positions involving a wide range of business and human resources management functions. He has in-depth knowledge of both business and HR practices. During his business career, Berkson negotiated, wrote, red-lined, and disputed contracts. He has answered charges, handled inspections, and supervised audits involving numerous agencies including the Department of Labor, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, and various state agencies. Berkson honed his analytical and writing skills while earning his Bachelor of Arts degree in Philosophy from the University of Washington. He went on to obtain a Master of Arts in Labor and Industrial Relations from the University of Illinois. Berkson’s work can be found in such publications as The Energy Law Journal, Human Resource Management Review and Personnel Psychology. He is a member of Phi Alpha Delta law fraternity and of Phi Kappa Phi honor society.

Travis D. on ContractsCounsel
View Travis
5.0 (1)
Member Since:
August 8, 2022

Travis D.

Free Consultation
Norman, OK
3 Yrs Experience
Licensed in OK
University of Oklahoma

Travis counsels individuals and businesses on a broad range of complex topics. His practice centers on producing efficient, client-driven results. He concentrates his practice on real estate, construction, and general business matters with an emphasis on assisting clients both before and after problems occur by drafting contracts designed to best position clients to avoid disputes and litigating matters to a final resolution if problems emerge. Born and raised in Oklahoma, Travis is a triple graduate of the University of Oklahoma, having obtained his Bachelor of Arts, Master of Business Administration, and Juris Doctor degrees from OU. Prior to practicing law, Travis managed the finances and business operations of a successful construction supply company for several years. This insight into sophisticated business dealings, contractual issues, and strategic planning makes him uniquely qualified to handle a wide range of legal matters. Travis lives in Norman with his wife, Haley, dogs, Walter and Poppy, and cat, Ernest. Outside of the office, Travis enjoys playing golf and reading.

Justin C. on ContractsCounsel
View Justin
5.0 (1)
Member Since:
August 12, 2022

Justin C.

Free Consultation
Hammond Indiana
6 Yrs Experience
Licensed in IN
Valparaiso University Law School

Justin Camper is a small business and trademark attorney, entrepreneur, public speaker, and writer. Justin has been practicing law close to 5 years and has done various areas of law from criminal work as a Prosecutor, to business and civil litigation at private law firms.

George L. on ContractsCounsel
View George
5.0 (2)
Member Since:
August 16, 2022

George L.

Free Consultation
Rock Hill, SC
4 Yrs Experience
Licensed in GA, SC
University of Georgia School of Law

George is a solo practitioner with offices in Rock Hill, SC, and Lavonia, GA. His practice is focused on contracts, tax, and asset protection planning. George regularly provides outside general counsel services to businesses and business owners. He current clients include multinational companies in Belgium and Pakistan with subsidiaries in the United States, charities, and several startups. When not practicing law, he can usually be found training his bird dogs.

Christopher M. on ContractsCounsel
View Christopher
4.9 (8)
Member Since:
August 16, 2022
Erik D. on ContractsCounsel
View Erik
4.9 (10)
Member Since:
August 1, 2022

Erik D.

Free Consultation
14 Yrs Experience
Licensed in FL
Stetson University College of Law

Erik has been a practicing attorney in Florida for over a decade. He specializes in employment and real estate contracts. He has represented clients big and small and can assist with any contract issue.

Marc S. on ContractsCounsel
View Marc
Member Since:
July 29, 2022

Marc S.

Free Consultation
Henderson, Nevada
42 Yrs Experience
Licensed in NV
Southwestern University

Have been practicing real property and business law in Nevada for over 40 years. No longer handling any litigation, transactional matters only.

Bolaji O. on ContractsCounsel
View Bolaji
Member Since:
August 9, 2022

Bolaji O.

Princial Attorney
Free Consultation
New York
4 Yrs Experience
Licensed in NY
Texas Souther University - Thurgood Marshall School of Law

Bolaji O. Okunnu is an entertainment lawyer and founder of the Okunnu Law Group, PLLC based in New York, New York. His practice includes work in the area of copyright, trademark, contract, intellectual property and business law. As an entertainment attorney, Bolaji represents a diverse roster of celebrities, record labels, music publishers, artists, bands, entrepreneurs, authors, songwriters, artist managers, record producers and entertainment executives concerning their intellectual property, business affairs and creative assets. He is an expert at solving complex and sophisticated legal and business issues relating to contracts, copyrights and trademarks. With his background in both the law and the music business, he brings a broad perspective to problem-solving and business plan strategies. He also has an extraordinary ability to speak to the hearts of creatives while helping them discover their voice and clarify their creative dreams and assignments.

Matt M. on ContractsCounsel
View Matt
Member Since:
August 16, 2022

Matt M.

Free Consultation
Orem, Utah
16 Yrs Experience
Licensed in UT
Washington & Lee University

I love to learn, and I love solving problems. That's why I became a lawyer, and learned to solve legal problems for individuals and businesses and help them fix things when there's a snag. Touch base if you think I could have something to offer for you or your company. Experienced, results-oriented legal professional whose background and education have established him as a valuable resource in areas of corporate law, franchising, litigation, compliance, mortgages and banking, and more. Practice Areas Include: Corporate law, Franchising, Litigation, real estate, corporate law, civil disputes, insurance representation, corporate counseling, dispute resolution, risk management, regulatory counsel, compliance. Experience involves sophisticated as well as routine corporate structuring and transactions, simple and complex litigation, and written and oral advocacy such as depositions, mediated settlement conferences, trials, appeals, written pleadings and discovery, and case strategy and analysis. Experience managing and litigating disputes between parties and negotiating settlements across the spectrum of civil litigation, including probative discovery, successful motions practice, legal research and writing, appellate practice, and legal consultation to individuals and business entities. Further experience includes digesting and monitoring updates to the legal landscape to advise clients or departments and successfully adapt policies and procedures to assure compliance with applicable laws and regulations as well as to manage risk effectively. For those needing a skilled commercial or corporate lawyer, or for individuals whose rights need persuasive advocacy, I am a valuable resource. Representative work also has involved success on the appellate level, as in Baker Construction Company, Inc. v. City of Burlington and Hawthorne, LLC, North Carolina COA09-13.

Madeline P. on ContractsCounsel
View Madeline
Member Since:
August 14, 2022

Madeline P.

Free Consultation
Frisco, Texas
7 Yrs Experience
Licensed in TX
Southern Methodist Uninversity - Dedman School of Law

I am the CEO and attorney at my law firm that I started in June 2020 (as other businesses were shuttering due to Covid-19). I am currently seeking contract work to supplement my case load as I recently finalized numerous family law cases within a short timeframe.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call