Business plans are going to have to change – in many ways. The new securities regulations mandate that, in some cases, business plans may constitute an investor communication that must therefore be filed with the SEC. Uh-oh. Better have your lawyer look at your business plan real close before you send it out, huh?
New Business Plan Opportunities
The good news in the new securities regulations pertains to what can be done with business plans. These can now become advance communications regarding a potential future offering where investor interest may, under certain guidelines, be solicited (see Rule 230.241 of the Securities Act of 1933, as amended) and certain negotiations be undertaken before the private placement offering is ever even filed. These communications may even, in some cases, be general solicitations in nature.
For commercial real estate developers seeking equity capital as early as the conceptual stage and entrepreneurs seeking start-up capital, these developments are a potential game-changer of unprecedented proportions. Time to get yours…