The main task of any company in the strategic investment development is to find and provide the effective ways to implement investment projectsor their parts.
Laying the foundations for the rational allocation of resources (capital, assets) to achieve the greatest efficiency over a certain time horizon remains Investment strategy development.
Viola Funding Limited has brought together experienced experts in the field of financial modeling and high-net-worth angel investors, investment engineering and consulting.
We are ready to provide you with a full range of financial services for large businesses in the European Union and the United States, as well as in East Asia, the Middle East, Latin America and other regions of the world.
If you are looking for affordable sources of long-term financing for large projects, Viola funding Limited offers loans from 50 million euros with maturities up to 20 years.
We also organize project financing (PF) schemes with a minimum contribution of the initiator from 10% of the project cost.
Stages of strategic investment development
Large investments, which are the driving force behind the development of the global economy, mean long-term investment of capital for profit.
Strategic investment development of an enterprise is often considered as a long-term goals and objectives of investment activity, as well as the mechanisms to achieve them.
The process of developing an investment strategy involves studying the existing potential of the enterprise and determining its ability to function effectively in the external environment, which allows you to reasonably set goals and determine the objectives of innovative business development.
Thus, a correctly defined strategy allows companies to form an investment portfolio that is optimal for specific conditions, which in practice will help improve business efficiency and create prerequisites for the company’s sustainable growth in a certain time horizon.
Strategic investment development of a large business can take two forms viz-a-viz Active strategy and Passive strategy
investments are aimed at maintaining the existing production level (usually associated with a deteriorating economy and contraction of markets, as well as a decrease in the availability of capital).
growth of the business based on the implementation of development projects, involving active investment in new projects, expansion and modernization of existing assets.
Investment strategy management principles
The investment strategy consists of many narrow areas determined by the designated areas of the company’s investment activities, and its development and implementation should be carried out in the context of the relationship between strategic goals, tactical and operational business objectives.
Ensuring effective adaptation of the investment strategy to changes in the factors of the external environment of the enterprise; any strategic changes in investment activities should be predictable and prompt response to relevant market and economic changes.
The implementation of the measures provided for by the investment strategy is carried out in compliance with the current legislation.
The Strategic investment development management process is continuous; if the chosen strategy does not produce the desired results, it must be replaced by a stronger strategy.
Large business differs from SMEs, first of all, in the complexity and multi-vector nature of the decisions made.
Investment in this case requires a deeper and more comprehensive analysis, given the complex contractual structure, the close relationship of any enterprise with related sectors and a high level of uncertainty.
Being the main action plan of any business, the investment strategy should determine the priority areas, methods and forms of investment, the nature of the formation of investment resources and the sequence of stages in the achieving of investment goals.
Strategic investment development selection factors include the following:
• The willingness of stakeholders to take risks.
• Access to financial resources (credits).
• Market situation etc.
• Expected rate of return.
• Investment horizon (planning period).
• The economic health of the company, as well as its partners.
• The level of management knowledge and their business experience.
This activity should be carried out in the context of a comprehensive in-depth analysis of the investment climate both in the country and in a particular industry. Thus, it is a multi-level process that includes an assessment of the macroeconomic and microeconomic aspects of the business.
The choice of an investment strategy should always be considered in close connection with a number of external and internal factors of business activity, including production, financial, personnel, marketing, environmental and others.
Fundamental analysis for choosing an investment strategy
The financial statements used in strategic investment development include the following:
• Cash flow statements.
• Report on changes in the structure of assets.
• Other financial indicators and information
• Balance sheet.
• Detailed income statement.
Liquidity ratios measure a company’s ability to pay current liabilities. Debt ratios analyze a company’s long-term debt, more specifically, the size of a company’s debt and the company’s ability to service that debt. Profitability ratios show the ratio of a company’s profit to other indicators.
Fundamental analysis of securities, companies or projects in a broad sense is an assessment of the real value of a potential investment object through related economic and financial factors of various levels. The basic information used in fundamental analysis is information about the economy and the market, as well as all available financial information about a company or project.
The components of fundamental analysis are listed below:
• Macroeconomic analysis.
• Sectoral analysis.
• Situational analysis.
• Financial analysis.
Development of an investment strategy for large businesses: our services
The essence of investment engineering looks simple and clear, however, the correct application and interpretation of each indicator and each model will require practical financial experience.
For these reasons, the development of an investment strategy requires the involvement of external experts.
Experienced teams that specialize in investment services increase the chance of success.
We provide clients with a full range of services for large businesses:
• Long-term loans for up to 20 years.
• Organization of project finance (PF) schemes.
• Operations with letters of credit or bank guarantees.
• Financial modeling and consulting.
•Investment engineering.
Viola Funding Limited is engaged in long-term financing of large projects and the organization of project finance (PF) in industry, energy, infrastructure, agricultural business, mining and other sectors.
Viola Funding Limited, in cooperation with high-net-worth angel investors, can contribute to the implementation of investment projects based on EPC contracts.
The services of a general contractor can be useful in the construction, modernization and expansion of capital-intensive facilities (factories, mines, refineries, LNG terminals, power plants, water treatment plants, gas pipelines, roads,real estate, etc.)
Learn more about the benefits of modern engineering and financial tools for your business.
eMAIL:Finance@viola-fundingltd.com
Website:https://viola-funding.com/
