5 ways to improve your Information Memorandum

By Nick Crawley on June 10 2010

In the debt markets, nothing says “unprofessional”, “exercise caution”, ”oh not another developer spruiking their project” quite like a poorly prepared Information Memorandum (“IM”) and Model package. Just like an office, staff, webpage, PowerPoint slides, financial model, if an IM can’t be properly prepared and presented then it raises doubts about a developers ability to deliver a project – arguably more challenging than a Word document!

What is an Information Memorandum?

In the Project Finance industry an Information Memorandum is generally presented to financiers and investors, by project developers along with a Financial Model to bring these parties up to speed with the project. It is often prepared by an advisor or a bank acting in this capacity. They are used for a variety of reasons including the sell down of the initial debt raising.

Tips for getting it right

A point often overlooked though is that it is still a sales document, the IM is your golden opportunity to demonstrate that your team can clearly explain the proposed project, representing the key benefits and that the known risks have been properly addressed.

1. Professionally presented

• Well laid out, page breaks in between
• Sections Use stunning diagrams / maps / logos / structure diagrams
• Be consistent with formatting (use Word Styles)
• Don’t rely on “Spell checker”, employ an editor / proof reader
• Start from scratch or a purpose template (not the last IM !)

2. Professionally packaged

• Deliver electronically as PDF
• Make accessible online with centralized user control
• If printed, bind it properly, do not just use a bulldog clip

3. Written style

• Take a top down approach, reading the first page should be sufficient to understand the project
• Be factual, back up everything you state
• Be concise, it is easy to ramble when you know too much!
• Use a professionally, non-emotional, prose
• Don’t assume, explain each concept before referencing it

4. Document structure

• Cover page
• Version control table
• Disclaimer
• Contents (dynamic)
• Contents of diagrams
• Glossary of technical terms
• Main body
• Appendix (consider having as separate documents)

5. Graphs

• Include at a decent size, if it is worth graphing its worth showing!
• Avoid default colour schemes, it will look like it was rushed
• Don’t clutter with too much information
• Always include a title and the units
• Legend, remember probably printed in black and white
• Explain what is being shown and any interesting features

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