ADVANTAGES OF A PRIVATE PLACEMENT

One major advantage of private placement is that the issuer isn't subject to the SEC's strict regulations for a typical public offering. With a private placement, the issuing company isn't subject to the same disclosure and reporting requirements as a publicly offered bond. 

Another advantage of private placement is the cost & time-related savings involved. Issuing bonds publicly means incurring significant underwriter fees, while issuing them privately can save money. Similarly, the process can be expedited when done in a private manner. Furthermore, private placement deals can be custom-built to meet the financial needs of both the issuer and investors.

You can save additional resources by working off professionally prepared templates for your Private Placement Memorandum. These documents are essential in providing full disclosure to potential investors.