The Importance of an Information Memorandum

At BizdealRoom.com, we require all projects to include a compliant information memorandum. This essential document serves multiple critical purposes in the business transaction process:

Why Information Memorandums Matter

Your project is highly unlikely to secure a buyer, investor, partner, or funding without a professional information memorandum. This document goes significantly beyond a simple pitch deck, providing comprehensive insights into your business proposition.

Deal Funding Success: The Memorandum Advantage


Professional memorandums dramatically increase funding success rates, with 65% of deals supported by quality documentation receiving funding compared to less than 10% of those without. However, receiving offers doesn't necessarily mean accepting them. Investors may propose terms with problematic restrictions or unworkable conditions. Most importantly, the potential partnership itself must be evaluated—even attractive financial terms can't compensate for an investor relationship that lacks alignment. Knowing when to decline an offer is as crucial as securing one.

10%

Less than 10% of deals without a quality memorandum get funded

65%

Of deals with a professional memorandum get funded

82%

Of deals with a professional memorandum receive offers

What Your Information Memorandum Should Include


A professional information memorandum should contain:

  • Detailed business information and history
  • Founder profiles and key personnel backgrounds
  • Specific use of funds breakdown
  • Comprehensive risk analysis
  • SWOT assessment
  • Potential market analysis
  • Clear value proposition for buyers, investors, partners, or finance companies
  • Supporting visuals and images
  • Financial overview (with detailed financials available for due diligence)


Our Compliance Standards


While sophisticated investors and business buyers may legally require less disclosure, BizdealRoom has established minimum information standards for all listings. Every project on our platform must include:

  • All essential business information outlined above
  • Investment warning statements
  • Confidentiality clauses
  • Clear next steps in the transaction process


We define this as a 'compliant' document because it meets our platform's standards for comprehensive disclosure and transparency, ensuring all parties have access to essential business information. However, it's important to note that our internal compliance standards are distinct from and should not be confused with any legal disclosure requirements mandated by ASIC (Australian Securities and Investments Commission) or state-based departments of fair trading. Business owners should always seek independent legal advice regarding their regulatory obligations for selling or promoting a business sale, partnership or investment opportunity. Raising capital and selling a business or partnership is a highly litigious area and caution is encouraged.

The Benefits of Proper Disclosure

Comprehensive disclosure serves dual purposes: it properly informs potential partners while simultaneously protecting business owners from potential legal claims. A well-crafted information memorandum demonstrates professionalism and significantly increases your chances of transaction success.