One of the most effective ways of expansion or modernization of all spheres of business are, of course, direct investments.To date, no doubt - this is the most effective investment tool for Russian companies.It is clear that this kind of investment are two sides of the coin - both positive aspects and negative, and both for the investor and for the company.
The basic advantage of this type of investment is to obtain the necessary funds for business development.It is worth noting that in the investee company or firm may be invested and the so-called intangible assets - information and technical support for the project, the authority of the investor, his business connections.It's not a secret that the sources of financing of direct investment in the face of large and reputable companies have a positive effect on the image.
There are disadvantages
main drawback infusion in the company of third-party financial flows is imposing on certain activities, often significant limitations.It is clear that a company or a fund that makes direct investments imply, in the end, make a profit, which should not be less than a third of the amount of investment, and in some exceptional cases, and much more.It is understood that the investment can be returned by the sale of shares to other investors and co-owners of the company directly.
On the other hand the people there is a saying that paying piper calls the tune.This fully national saying can be applied to the problem, because no matter what kinds of direct investment are not used, they need to work effectively, at least from the point of view of the investor.Thus, the administration invested enterprise must understand that there may be certain, often, significant changes in the marketing policy and in the management of managers.For example, many investors authorize the appointment of CFOs in the investee companies.
Where and how to find sources of funding for private equity?
Before you rush into the maelstrom of the search as required investor should carefully examine the state of affairs in their own enterprise, since there are some aspects that should be addressed and to identify before go direct investments.
- Availability and literacy development of a business plan.There is no doubt that investing in a start-up company to a large extent activity more risky than in proven in a certain area.The document does not necessarily have to be presented in its basic form, but must clearly indicate the direction, the form and methods of using the funds received, and display those kinds of direct investment, which can be used most effectively.
- level of professional skills of the staff and, above all, management should be determined not by words but by certain developments that characterize the ability of managers and executives achieve their intended project objectives.
- dynamics of the business.It is clear that there are few investors willing to invest in unpromising, the more unprofitable projects.
- The last owners of the company must be clearly defined with which part of their business, they are willing to pay in exchange for a direct investment.It is understood that many investment funds are willing to cooperate only subject to at least a blocking stake, and often control.
only comprehend and assessing the above aspects should try to seek investors or in the name of investment funds or corporations, or referring to individuals.
