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The next section of your PPM, following the Summary of the Offering, and Your Movie and the Film Industry, is the Terms of the Offering and Securities Being Offered. The final sections of your PPM detail the terms of the offering, as well as distribution of profits.
Amount of Offering
How much money are you looking for? This is not necessarily your budget, as you may have a tax credit, equity already raised, loans or soft money commitments.
Price per Unit
How much is the minimum investment in the film?
Minimum # of Units
Who owns shares of the film at the onset? This info is needed for management of offering entity and/or larger shareholders of the entity.
This section includes employment agreements, option and equity agreements, loans (from someone to company or from company to someone), agreements to supply, buy, etc. involving management and/or its affiliates.
Compensation of all kinds, inclucing salary and backend.If you do not have crew in place, or have not worked out their deals, then leave them out.
How do you plan to sell Units in your film? Will you have a Broker/dealer or will Units be sold by management? If a broker, include all relevant agreements.
You must also detail the terms of any agreements regarding commissions, due diligence and finders fees in regard to sale of Units.
This section presents the balance sheets for offering entity and Manager of offering entity.
This section lists any lawsuits, pending or actual, against the company or its management.
In summary, the ten main sections of a PPM are:
Remember these are not just elements of a PPM, but of a proper business plan for your film. If you can break down the answers to most of these sections, then you are ready to start building the business proposal for your film. If not, or if all of this financial talk is making your head spin, do not despair. We can help you through the PPM process at FilmProposals.
Don’t be scared off by high-priced services, investment banks or attorneys. There are more than enough resources out there to help you get through this process, and FilmProposals.com is a good place to start is putting together your business proposal – where we can personally walk you through these answers.
This is Part 4 of the FilmProposals PPM Series:
More from FilmProposals:
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