PPM for Self-funded search?

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January 20, 2023

by a searcher from Fachhochschule Pforzheim, Hochschule für Gestaltung, Technik und Wirtschaft in Ulm, Germany

hi all,

I am just wondering, how important it is actually (especially for a self-funded search) to stick to the often referenced standard material like a classic PPM. Does anyone have experience here?

Best,

Ali

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Reply by a searcher
from Columbia University in New York, NY, USA
Somewhat discussed above, but I am curious if a PPM is needed ‌if a self-funded searcher has found a deal and is seeking investors to help close the equity gap. Curious if there is a distinction between family and friends financing vs. other external investors. Perhaps it is just the investor document after the deal is under LOI, but curious what document might be used to recruit investors earlier in the process. Thanks for any guidance.
commentor profile
Reply by a searcher
from University of Utah in Salt Lake City, UT, USA
I am no attorney but from what I am aware of. If you are brining on investors to help you fund the equity portion of the deal. You will need to have a PPM created with a few exceptions. This is something regulated by the SEC for non public funds its needed to protect you and the investors.
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