Analysis of the investment attractiveness of enterprises in the sectoral context. Ways to improve it

Investment attractiveness can also be considered as an absolutely independent category, characterized not only by the stability of the financial condition. At the same time, it is important to assess the level of competitiveness of products and the degree of orientation of the enterprise to the maximum satisfaction of consumer expectations, as well as the innovative potential of the company.

Traditionally, investment attractiveness factors are usually divided into two categories (Fig. 3.2.1).

External factors are factors that do not depend on the results economic activity enterprises.

Internal factors include factors that depend directly on the result of the economic activity of the enterprise. Therefore, it is the internal factors that are the main lever of influence on the investment attractiveness of the enterprise.

Rice. 3.2.1. Factors affecting investment attractiveness

In the context of the globalization of the economy, the investment attractiveness of an enterprise cannot be considered separately from such an important component as the investment climate of the country in which the enterprise operates.

The nature of the investment climate depends on the action of a complex of interrelated factors:

Legislative stability;

The effectiveness of the investment policy of the state for the development of the national economy of the country, regions and business entities.

Rice. 3.2.2. Main characteristics of the investment climate

The influence of these factors was acutely felt by the Russian economy in 2014, when the net export of capital from the country reached $154.1 billion. The negative trend continues in 2015. In the six months since the beginning of the year, capital outflows have already amounted to $52.5 billion. According to the forecasts of the Ministry of Finance, this amount will almost double by the end of the year and will amount to about 90-100 billion dollars. No significant improvements are expected in 2016-2017 either.

Summarizing the considered ways to increase the investment attractiveness of enterprises in the construction sector of the economy, we note that, first of all, it is necessary to take into account groups of factors that the management personnel of the enterprise can directly influence (Table 3.2.1).

Table 3.2.1

Internal factors affecting the increase in the investment attractiveness of the enterprise

Let's take a closer look at internal factors:

The financial condition of the enterprise, assessed on the basis of the following indicators: the ratio of borrowed and own funds; the current liquidity ratio; the asset turnover ratio; return on sales by net profit return on equity in terms of net profit;

Organizational structure of the company's management: share of minority (non-controlling) shareholders in the structure of the company's owners; degree of state influence on the company; degree of disclosure of financial and management information;

The degree of innovation of the company's products;

Stability of cash flow generation;

The level of diversification of the company's products.

To obtain information about the activities of the company of interest, you can use various sources. For classification, sources are divided into two groups: external and internal.

External sources of information: archives of banks reports of consulting, auditing agencies information about the enterprise in the media stock market data information from the partners of the enterprise.

Internal sources of information are characterized by a low frequency of receipt and, as a rule, are associated with the preparation of quarterly or annual reports: accounting reports internal financial reports internal management reports planning documents tax reporting statutory documents.

External factors include:

1) the investment attractiveness of the territory, which includes the following parameters: the political and economic situation in the country, the region, the perfection of the legislative and judicial authorities, the level of corruption in the region, the development of infrastructure, the human potential of the territory. Rating agencies (Standard&Poors, Moody's, Fitch, Expert RA) are assessing the investment attractiveness of states and regions.

2) investment attractiveness of the industry, including:

The level of competition in the industry;

Current development of the industry;

Dynamics and structure of investments in the industry;

The stage of development of the industry.

Analysis of these components is an important step in investment analysis. The investment attractiveness of the industry is characterized by a number of parameters, the most significant of which are: the growth rate of production volumes, the growth rate of prices for production factors, financial condition industry, availability of innovation and degree of R&D.

The state of investment attractiveness of the industry is influenced by a number of factors:

macroeconomic environment;

Environmental Safety;

Infrastructure condition;

The level of the production process in the industry;

Personnel component;

Financial environment.

To regulate investment attractiveness, it is possible to use a model for predicting the volume of investments in the production activity of an enterprise. This model allows predicting the level of investment attractiveness depending on various values ​​of indicators that determine the investment attractiveness of an enterprise. For example, a reduction in the refinancing rate will reduce the risk component, which, with the economic component unchanged, will increase the investment attractiveness indicator.

The use of a forecasting model by substituting the calculated value of the enterprise's investment attractiveness indicator makes it possible to determine the expected capital inflow in the event of a change in the refinancing rate. Comparison of the obtained value with the enterprise's need for capital-forming investments shows the need for further changes. If the expected volume of investments is less than the required one, the enterprise needs further changes aimed at improving the investment attractiveness. If the expected volume of investments is more than required, it is recommended to limit investment activities in order to prevent the enterprise from being oversaturated with investment resources.

Interesting and viable is a differentiated approach to increasing investment attractiveness. To remain attractive to potential investors, it is not enough for an enterprise to simply identify factors that can be influenced by management decisions. It is necessary to develop an overall investment reputation management strategy.

Such a strategy should include the following elements:

Determination of methods for visualization and presentation of indicators of the investment attractiveness of the enterprise;

Formation of a methodology for active monitoring of investment attractiveness;

Determination of integral indicators for assessing investment attractiveness;

Analysis of the features and requirements of the investor (even in the case when the investor is the owner of the enterprise);

Diagnostics of the state of the enterprise and determination of the most active investment advantages of the enterprise;

The study allows us to conclude that the main method of increasing investment attractiveness in the field of entrepreneurial activity is the formation of an enterprise investment strategy, which can be interpreted as a single integrated system consisting of many organizational aspects. The purposefulness and high professionalism of the management personnel within the framework of this strategy will help attract foreign investment to the enterprise even in the face of an unfavorable investment climate in the country.

3.3. Forecasting the most important indicators when investing in the enterprise JSC "Zavod ZHBI-3"

Each investor pursues his goals by investing in the company's tangible and intangible assets. Depending on the goals, investors can be divided into two groups: financial and strategic investors (Table 3.3.1).

Table 3.3.1

Investor groups and their differences

In Russia, financial investors are represented by investment companies and funds, venture capital funds. Most of the transactions of such investors take place in the secondary market and do not directly bring additional investments to the enterprise, but the purchase of the company's securities leads to an increase in the company's market capitalization. These investors make a profit from dividends or coupons paid by the company, and from the appreciation of the company's securities. Profitability for the period of holding HPR (from the English holding period return), this indicator is equal to the ratio of total income to initial investment and is calculated using the formula (3.3.1) :

HPR = Total Return / Initial Investment (3.3.1)

The HPR indicator can take on more than just positive values. If there is no increase in the value of the asset in the current period, but there are capital losses that are not covered by current income, the HPR value will be negative.

Let's consider another important question - why does an enterprise need financing in the form of investor assistance, and not a bank loan? Based on statistics, more than 15% of medium-sized businesses do not take a loan due to high interest rates. In fact, it is quite difficult to bring the average value of the lending rate to medium-sized businesses. This is because, depending on the type of loan instrument, the amount of the loan, the period of time for which it is provided, collateral, as well as the currency in which the loan is issued, the interest rate can vary from 10 to 19% per annum. Examples of rates on business loans for 2016 are given in Table. 3.3.2.

Investments are always associated with the risk of placing capital in order to generate income. Investments differ from loans precisely in the presence of risk - the loan must be repaid regardless of the success of the business. What is a big minus for the invested enterprise. Investments return and generate income only when placed in profitable and successful projects.

Table 3.3.2

Business loan rates for 2016

In the course of studying the enterprise JSC "Zavod ZHBI-3", many indicators were analyzed: financial stability, liquidity, solvency, profitability and bankruptcy - basically, they all have a jump structure, the values ​​​​of the indicators are rapidly increasing upwards and no less rapidly decreasing one by one. In my opinion, this organization needs financial support in the form of investments in order to normalize the values ​​of the indicators, thereby increasing the production turnover and the income of the enterprise. Further, using the example of some balance sheet liabilities, we will consider the values ​​of the actual analyzed period of short-term liabilities (Fig. 3.3.1) and changes in the forecast period when investments are made in unsatisfactory areas (Fig. 3.3.2). Similarly, we examine long-term liabilities (Fig. 3.3.3, Fig. 3.3.4).

Rice. 3.3.1. Values ​​of the actual period of short-term liabilities

Rice. 3.3.2. Values ​​of the forecast period of short-term liabilities

Studying the graph of the actual period of short-term liabilities, one can consider consistently low values ​​in 2012-2013. (6,969 - 6,739 thousand rubles), but in 2014 there is a sharp jump to 406,964 thousand rubles, and in 2015 there is again a rapid fall to 8,427 thousand rubles.

To stabilize the values ​​and exclude the formation of weak spots, a period was forecast for the next three years (2016 - 2018), taking into account attracted funding in the form of investments in the amount of 475,860 thousand rubles with an average growth rate of 1.19% annually. Tentatively, every year the company needs to invest. The average growth rate is based on retained earnings for 2012-2015. (Table 3.3.2).

Table 3.3.3

Retained earnings of ZhBI-3 Plant OJSC

As a result, attracting investments has a very positive effect on short-term liabilities in the forecast period, the values ​​stabilized at 484,287 thousand rubles in 2016 and have an annual upward trend.

Similarly, consider the values ​​of long-term liabilities. You should start with the chart of the actual period for 2012 - 2015. There is a decline in even years in 2012 (83,155 thousand rubles) and in 2014 (33,943 thousand rubles), and a rapid growth in odd years in 2013 (264,408 thousand rubles) and in 2015 (378,264 thousand rubles) .

Rice. 3.3.3. Values ​​of the actual period of long-term liabilities

Rice. 3.3.3. Values ​​of the forecast period of long-term liabilities

Attracting investments also has a positive effect on long-term liabilities in the forecast period, the values ​​stabilized in the actual period in 2015 at around 378,264 thousand rubles. Investments maintain the indicators in a stable state and an upward trend with an average growth rate of 1.19% annually.

To assess the liquidity and solvency of the enterprise in the long term, according to the same principle, we will predict the following indicators: current, quick and absolute liquidity ratios. The calculation results are given in Table. 3.3.4.

Table 3.3.4

Liquidity and solvency indicators

Current liquidity ratio in the actual period 2012-2014 is not stable. In 2012, it was 0.73, and in 2013 it sharply increases to 3.69 and then decreases to 0.58 (Figure 3.3.4). Such a sharp rise in the indicator is explained by an increase in the share of reserves and long-term liabilities and a reduction in short-term loans and borrowings, that is, the company has current liquidity and will be able to cover its short-term liabilities by mobilizing its current assets, but only for a while. To maintain liquidity in a stable state, investments are needed, which is reflected in the forecast period chart (Fig. 3.3.5).

Rice. 3.3.4. Actual period of current ratio

Rice. 3.3.5. Forecast period of current ratio

Having considered the quick liquidity ratio in the actual period, in 2012 and 2014. below the standard value of 0.7. This means that the amount of current liabilities of the enterprise has become much larger than the amount of cash, expected receipts for shipped products or services rendered. In the middle and at the end of the period 2013 and 2015. the value of this coefficient increases rapidly, again observing an abrupt trend. This is due to the largest share of receivables in assets with an average degree of liquidity (Chart 3.3.6). The forecast period shows how stable the indicator becomes and has a positive character due to the attraction of investments (Fig. 3.3.7).

Rice. 3.3.6. Actual period of quick ratio

Rice. 3.3.7. Forecast period of quick liquidity ratio

In our case, the values ​​of the absolute liquidity ratio during the actual period are lower than required (> 0.2) (Fig. 3.3.8), this indicates a small share of cash in the total assets of the enterprise. The same happens in the forecast period (Fig. 3.3.9), this shows that investments cannot always fix all the existing vulnerable areas of the enterprise, only in conjunction with other recreational activities, it is possible to achieve the set goals.

Rice. 3.3.8. Actual period of absolute liquidity ratio

Rice. 3.3.9. Forecast period of absolute liquidity ratio

Let's also consider the bankruptcy probability model for OJSC "Zavod ZHBI-3" - a two-factor model by E. Altman in the actual and forecast period.

The Altman model is an algorithm for the integral assessment of the threat of bankruptcy of an enterprise, based on a comprehensive accounting of the most important indicators that diagnose its financial crisis.

Altman's two-factor model is one of the simplest and most intuitive methods for predicting the probability of bankruptcy. For the calculation, indicators are needed, such as the coverage ratio and the financial dependence ratio. The coverage coefficient is known to us, and the second coefficient will be considered in more detail in Table. 3.3.5.

Table 3.3.5

Indicators of financial dependence

The financial dependency ratio shows how the company's assets are financed by borrowed funds. This indicator for almost the entire actual period increases and exceeds the standard value.<0,4, что составляет 0,48-0,61. Это свидетельствует о том, что активы предприятия финансируются на 48 - 61% за счет заемных средств. Данные расчеты говорят о снижении финансовой независимости (рис. 3.3.10). В прогнозируемом периоде идет уменьшение показателя, что в конечном итоге соответствует нормативному уровню (<0,4) (рис. 3.3.11).

Rice. 3.3.10. Actual period of financial dependency ratio

Rice. 3.3.11. Forecast period of financial dependency ratio

In order to determine what the financial condition of the enterprise is, there is a dependence between the value of the indicator and the probability of bankruptcy of the enterprise (Table 3.3.6).

Table 3.3.6

Dependence of the index Zj and the probability of bankruptcy

The calculation of this model is presented in Table. 3.3.7:

Table 3.3.7

Two-factor model of E. Altman

Having studied Altman's two-factor model in the actual period, we can conclude that the probability of bankruptcy at this enterprise is less than 50%, while the value of Zi decreases as it decreases, in the period from 2012 to 2013 it decreases from - 1.14 to - 4.32 (Fig. 3.3.12), which is a positive trend, as the probability of bankruptcy is decreasing. But in 2014, the coefficient increased again, and in 2015 it decreased again, a jump structure can be traced again. Also, the predicted period of 2016-2018 tells us about the decrease in the indicator. the value dropped from -3.23 to -4.43 (Fig. 3.3.13).

Rice. 3.3.12. The actual period of the two-factor model of E. Altman

Rice. 3.3.13. Forecast period of the two-factor model by E. Altman

Conclusion

In the thesis work, an assessment of the financial attractiveness of the enterprise JSC "Zavod ZHBI-3" was carried out.

Many indicators were analyzed: financial stability, liquidity, solvency, profitability and bankruptcy - basically, they all have a jump structure, the values ​​​​of the indicators are rapidly increasing upwards and no less rapidly decreasing one by one.

ZhBI-3 Plant JSC needs investments to fill in the missing “gaps” and eliminate spasmodic trends in key financial indicators. Currently, the organization is the main investor for itself, investing in its own construction in its own production of reinforced concrete structures, which are directly involved in the construction of facilities. To do this, it is necessary to finance the qualified training of the company's specialists, taking into account new modern achievements in construction, as well as to modernize or purchase modern equipment. Also, the most optimal way to improve the financial condition of the enterprise by replenishing its own working capital by investing, as well as accelerating the turnover of capital in current assets. Undoubtedly, this investment project is very profitable, since the enterprise has been operating with an enviable duration for many years, it just lacks financial support from external sources.

Based on the work under study, it can be concluded that investing in this enterprise can provide an increase in the investor's wealth.

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Introduction

Chapter 1. Theoretical foundations of the investment attractiveness of an enterprise

1.1 The essence and concept of the investment attractiveness of the enterprise

1.2 Factors affecting the investment attractiveness of an enterprise

1.3 Methods for assessing investment attractiveness

Chapter 2. Analysis of financial directions of investment attractiveness of CJSC VMZ Krasny Oktyabr

2.1 General characteristics of the financial condition of the enterprise

2.2 Analysis of the attractiveness of the enterprise based on the assessment of financial performance

2.3 Comprehensive assessment of ways to increase the investment attractiveness of CJSC VMZ Krasny Oktyabr

Conclusion

Appendix

List of used literature

INTRODUCTION

The success, performance and long-term viability of any enterprise depend on a continuous succession of sound management decisions. Each of these decisions ultimately has economic consequences for the operation of the enterprise. In essence, the process of managing any enterprise is a series of economic decisions.

Some decisions are central, such as investing in new equipment, borrowing large sums, or producing new products. Most of the other decisions are part of the daily management process of all departments of the enterprise. Common to all decisions is the basic principle of "economic compromise", according to which, before each decision, the manager must weigh the benefits and costs.

One of the most important areas of activity of any enterprise is investment operations, i.e. operations related to the investment of funds in the implementation of projects that will ensure that the company receives benefits over a sufficiently long period of time.

Entrepreneurial activity is the manufacture of products or the provision of services aimed at making a profit. To achieve a more efficient business environment, it is necessary to constantly implement new projects and ideas.

A correct assessment of the investment attractiveness of an enterprise enables the enterprise to receive stable income and make informed decisions.

The economic evaluation of any investment project must necessarily take into account the peculiarities of the functioning of the market, in particular the mobility of many parameters characterizing the project, the uncertainty of achieving the final result, the subjectivity of the interests of various project participants and, as a result, the plurality of criteria for its evaluation.

The purpose of the course work: the study of ways to increase the investment attractiveness of the enterprise.

Objectives of the course work:

Consider the concept of investment attractiveness of an enterprise

To study the features of assessing the financial attractiveness of an enterprise

Explore financial directions for increasing the investment attractiveness of the enterprise

Carry out a comprehensive assessment of the investment attractiveness of an enterprise using the example of CJSC VMZ Krasny Oktyabr.

The subject of the study of the course work is the financial side of the enterprise and ways to increase investment attractiveness.

The empirical basis for the study was the data of the enterprise, articles and Internet resources.

CHAPTER 1. THEORETICAL FOUNDATIONS OF THE INVESTMENT ATTRACTIVENESS OF THE ENTERPRISE

1.1 ESSENCE AND CONCEPT OF INVESTMENT ATTRACTIVENESS OF AN ENTERPRISE

Investment activity - investment of funds (investment) and the implementation of practical actions in order to generate income or achieve another beneficial effect - is inherent in any enterprise to one degree or another.

With a large selection of types of investments, an enterprise is constantly faced with the task of choosing an investment solution. Making an investment decision is impossible without taking into account the following factors: the type of investment, the cost of the investment project, the multiplicity of available projects, the limited financial resources available for investment, the risk associated with making a particular decision, etc.

To determine the maximum efficiency of an investment decision, the concept of the investment attractiveness of an enterprise is used.

Most often, the term "investment attractiveness" is used to assess the feasibility of investing in a particular object, choosing alternative options and determining the efficiency of resource allocation, i.e. The investment attractiveness of an enterprise is the expediency of investing temporarily free cash in it.

Thus, investment attractiveness is characterized by the state of the enterprise, its further development, profitability and growth prospects.

The main source of information for determining the investment attractiveness of an enterprise is its accounting (financial) statements for the last two calendar years and the last reporting period.

The investment attractiveness of the enterprise includes:

Ш General characteristics of the technical base of the enterprise - the nature of the technology; availability of modern equipment, warehousing, own transport; geographical location, proximity to transport communications.

Ш Characteristics of the technical base of the enterprise - the state of technology, the cost of fixed assets, the coefficient of physical and obsolescence of fixed assets.

Ш Nomenclature of products that are produced.

Ш Production capacity - the maximum possible output per unit of time. Production capacity characterizes the work of fixed assets in such conditions under which you can fully use the potential inherent in the means of labor.

Ш Place of the enterprise in the industry, on the market, the level of its monopoly.

Ш Characteristics of the management system (organizational structure of the enterprise). Large enterprises specializing in the production of complex, labor-intensive types of products usually consist of dozens of workshops, laboratories, and departments. To coordinate their activities, a hierarchical management structure is being created.

1.2 FACTORS INFLUENCING THE INVESTMENT ATTRACTIVENESS OF THE ENTERPRISE

The investment attractiveness of an enterprise depends on many factors, among which the following can be noted: financial position, risk, production development efficiency, dividend policy, information about activities, etc.

All factors affecting the investment attractiveness of an enterprise can be divided into two groups: external and internal. They form systems of external and internal risks of the investment project, which are of particular importance for solving this problem. Consider the main factors that should be considered when assessing the investment attractiveness of an enterprise:

Industry affiliation. It is well known that the competitiveness of products in the market to a large extent depends on the reputation of the relevant industry, country in the world market. In competition with an enterprise in an industry that is successfully operating on the market, the advantage is provided by the fact that, as a rule, the enterprise itself is associated with all enterprises of the country that are part of this industry.

Enterprise owners. The nature of ownership, that is, who owns the controlling stake and large stakes, is essential not only for the current activities of the enterprise, but also for its successful development. Depending on the nature of ownership, an enterprise management system should be built.

Production potential. The state of the production potential of an enterprise has a direct impact on its investment attractiveness, but is practically not taken into account by investors and creditors. It is more common to assess the financial condition or talk about the existing capital of the enterprise and the effectiveness of its management. But it should be borne in mind that, in fact, capital works only after it has passed into a production form, becoming a structure of production potential. Thus, capital is converted into fixed assets, working capital and intangible assets.

Enterprise management. When analyzing management, the macro-level of enterprise management is studied from the quality of the development of documents related to management and the availability of strategic management, to how perfect the tax planning system of the enterprise is.

Location. In Russian conditions, this factor can be of decisive importance in the investment attractiveness of the enterprise. Relations with power. The investor needs to find out what kind of relationship has developed with the local authorities. Will the authorities contribute to the success of the project or erect obstacles to its implementation.

Investment program. The lender and the investor need to get acquainted with the documents not only for the investment project being financed or financed, but also for the entire set of investment projects of the enterprise. The analysis of such a program is not an easy and delicate matter; in each specific situation, it should be carried out taking into account the actual conditions and interests of the parties - the participants in the investment project.

1.3 METHODS FOR ASSESSING INVESTMENT ATTRACTIVENESS

Based on world practice, an assessment of the investment attractiveness of an enterprise is carried out if the necessary data are available, such as:

1) cash flow

2) balance sheets

3) income statement

For all Russian enterprises, the main indicator of investment is the payback period and return on assets. As for the stages that are used in the process of making investment decisions, at the moment there are three main ones:

1) the amount of investment and identification of funding sources

2) assessment of the expected cash flows from the implementation of the investment project

3) assessment of the financial condition of the enterprise and the chances of its participation in investment activities

The financial condition of an enterprise is a concept and its characteristics, which are based on an assessment of the effectiveness of the allocation of funds, the availability of the necessary financial base, the organization of settlements and the stability of solvency.

Very widespread are various methods created to assess the financial position of an enterprise, which are based on the analysis of a system of financial ratios. With all their diversity, they should include indicators of such areas for assessing the financial condition of the enterprise:

Liquidity indicators

Indicators of financial stability

Business Activity Indicators

Profitability indicators

The liquidity of an enterprise is its ability to quickly sell assets and receive money to pay its obligations.

1. The current liquidity ratio (coverage ratio) shows how many units of current assets of the enterprise falls on one unit of current liabilities. This indicator is of particular importance for the assessment of the enterprise by buyers and investors. The normative value of the coverage ratio is 1.

where, current assets are cash and short-term financial investments, receivables and other current assets, stocks and long-term financial investments current liabilities are accounts payable and short-term loans and borrowings

2. The instantaneous (quick) liquidity ratio determines that part of liabilities that can be repaid not only from cash, but also from expected receipts for shipped products (work performed, services rendered). The normative value of this indicator is 0.6 - 0.8.

3. Absolute (full) liquidity ratio shows what part of current liabilities can be repaid by assets that have absolute liquidity. Normative value: 1? KAL? 2.

4. The ratio of short-term accounts receivable and accounts payable characterizes the ability of the enterprise to pay off creditors at the expense of debtors within 1 year. The recommended value is 1.

b Financial stability characterizes the degree of financial independence of the enterprise regarding the ownership of its property and its use. The degree of independence can be assessed according to different criteria:

1. the level of coverage of material working capital (reserves) with stable sources of financing

2. solvency of the enterprise

3. share of own or stable sources in total funding sources

Solvency is the ability of an enterprise to cover its short-term obligations through cash and receivables.

where, A1 - the most liquid assets: cash and short-term financial investments

A2 - quickly realizable assets: accounts receivable and other current assets

P1 - the most urgent obligations: accounts payable

P2 - short-term liabilities: short-term loans and borrowings

If this condition is met, the company is considered solvent.

Financial stability is the degree of coverage of reserves and costs by the sources of their formation. To characterize the degree of financial stability, you can use a three-component vector of financial stability:

If the value of the coordinate is positive, then it is assigned the value 1, if negative - 0.

An analysis of financial stability by the criterion of the degree of coverage of reserves by stable sources of financing, as well as by the criterion of the solvency indicator, makes it possible to get a complete picture of the current and expected level of financial stability.

ь Analysis of the business activity of the enterprise allows to evaluate the efficiency of the main activity of the enterprise, which is characterized by the speed of turnover of the financial resources of the enterprise.

The following indicators are used to analyze business activity:

The turnover ratio of current assets determines how much revenue per unit of working capital or the number of turnovers per year:

The inventory turnover ratio characterizes the number of turnovers of funds invested in inventory:

The accounts receivable turnover ratio shows how many times the revenue exceeds the accounts receivable:

At this stage, the period of turnover of current assets (in days) is also calculated, which characterizes the time from spending funds for the production of products to receiving money for its implementation:

where, N is the period of time for which the analysis is carried out (in days)

An increase in the turnover of current assets and a reduction in the period of their turnover indicates an increase in the efficiency of the use of current assets.

ь Profitability is a relative indicator of profit, which reflects the ratio of the effect obtained (income, profit) with cash or used resources.

Return on assets (capital) is calculated as the ratio of profit to the average annual value of the company's assets:

where is the net profit from the sale of products

Average annual value of assets (balance sheet currency)

The return on assets shows the amount of net profit that falls per unit of assets, the normative value is greater than 0.

In the course of assessing the investment attractiveness of an enterprise, the effectiveness of investments is assessed.

The effectiveness of investments is determined using a system of methods that reflect the ratio of costs associated with investments and results.

The set of methods used to assess the effectiveness of investments can be divided into two groups: dynamic (taking into account the time factor) and static (accounting).

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Rice. 1. Classification of investment analysis methods

The most important of the static methods is the “payback period”, which indicates the liquidity of a given project. The disadvantage of static methods is the lack of consideration of the time factor.

Dynamic methods are often called discount methods, since they are based on determining the current value (ie, discounting) of cash flows associated with the implementation of an investment project.

Static methods

b Term return on investment (PP) - one of the simplest and most widely used methods in world practice, does not imply a temporal ordering of cash receipts.

The general formula for calculating the PP indicator is as follows:

The PP method is successfully used for quick rejection of projects, as well as in conditions of high inflation, political instability or a shortage of liquid funds: these circumstances orient the enterprise to receive maximum income in the shortest possible time.

b Simple rate of return (ARR) method

The essence of the method: the average net accounting profit over the life of the project is compared with the average investment (costs of fixed and working capital) in the project.

Dynamic Methods

b The net present value (NPV) method is based on comparing the value of the original investment (IC) with the total discounted net cash flow generated by it over the forecast period. Since cash inflows are spread over time, they are discounted by a factor r, set by the investor based on the annual percentage return that he wants or can have on the capital he invests.

Suppose a forecast is made that an investment (IC) will generate, over n years, annual returns of P1, P2, ..., Pn. The total accumulated value of discounted income (PV) and the net present effect (NPV) are respectively calculated by the formulas:

If: NPV>0 - the project should be accepted, NPV<0 - проект следует отвергнуть,

NPV = 0 - the project is neither profitable nor unprofitable.

b Internal rate of return method

Under the internal return (IRR) is understood the value of the discount factor at which the NPV of the project is 0:

The meaning of calculating this ratio when analyzing the effectiveness of planned investments is as follows: IRR shows the maximum allowable relative level of expenses that can be associated with a given project.

If: IRR>CC - the project should be accepted, IRR

ь Discounted payback period method

The discounted payback period is the number of periods (years) during which the investment will be recovered. This criterion characterizes the liquidity and indirect risk of the project.

DPP eliminates the disadvantage of the static payback period method and takes into account the time value of money, and the corresponding formula for calculating DPP is:

The shorter the payback period, the more effective the project is. In practice, the DPP value is compared with some given time period n. If DDP?n, then the project is accepted, otherwise it should be rejected.

ь Profitability index

This method is, in fact, a consequence of the net present value method. Profitability Index (PI) is calculated by the formula:

If PI>1 - the project should be accepted, PI<1 - отвергнуть, PI=1 - проект ни прибыльный, ни убыточный.

The indicator of investment attractiveness of the investment object is calculated by the formula:

where S i - indicator of investment attractiveness (value) of the i-th object

Ф i - resources of the i-th object participating in the competition

H is the value of the consumer order.

A consumer order is considered as a hypothetical willingness of a future investor to invest free money in commercial property.

Thus, in many methods for assessing the investment attractiveness of an enterprise, one of the main factors in assessing and predicting the future state of the analyzed organization is the assessment of its management system. But, none of them fully covers the possible field of factors affecting the investment attractiveness, determined on the basis of the theoretical model of the firm chosen for the purposes of this study.

2 ANALYSIS OF FINANCIAL DIRECTIONS OF INVESTMENT ATTRACTIVENESS OF ZAO VMZ RED OCTOBER

2.1 GENERAL CHARACTERISTICS OF THE FINANCIAL STATE OF THE ENTERPRISE

investment attractiveness financial return

CJSC VMZ Krasny Oktyabr uses the latest technologies for steel smelting and production of rolled metal products of various profiles. Therefore, the quality and availability of the company's products compares favorably with manufacturers in a similar field of activity.

CJSC VMZ Krasny Oktyabr makes very high demands on the qualifications of its personnel and takes into account their work experience in the production and technical field. All employees are competent PC users.

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Rice. 2. Dynamics of proceeds from the sale of CJSC VMZ Krasny Oktyabr

The proceeds from the sale of the enterprise in the period from 2006 to 2008 tended to decrease.

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Rice. 3. Dynamics of the cost of services and profit from sales of CJSC VMZ Krasny Oktyabr

The cost of the enterprise during the period under review methodically increased. The same trend is typical for profits. Figure 2 clearly shows that the profit from the sale is much lower than the cost of the services provided by the enterprise.

2.2 ANALYSIS OF THE ATTRACTIVENESS OF THE ENTERPRISE ON THE BASIS OF THE ASSESSMENT OF FINANCIAL INDICATORS

The balance sheet of ZAO VMZ Krasny Oktyabr as of 01.01.2008 is as follows. [cm. Appendix]

The book value is:

assets - (long-term liabilities + short-term liabilities) = = 16273- 15029 = 1244 thousand rubles.

The value of the net assets of the enterprise is 1244 thousand rubles.

In general, positive preliminary conclusions can be drawn about the financial condition of the enterprise.

The financial indicators of the enterprise are given in table 2.1.

Table 2.1 Analysis of the financial condition of ZAO VMZ Krasny Oktyabr

Explanations for calculations:

K TL - current liquidity ratio

OA - current assets

KO - short-term liabilities

at the beginning of 2007: 13540/14405=0.94

at the beginning of 2008: 14000/15029=0.93

K BL - quick liquidity ratio

DS - cash

KFV - short-term financial investments

DZ - accounts receivable

at the beginning of 2007: (169+580+4869)/14405=0.39

at the beginning of 2008: (134+469+3416)/15029=0.27

at the beginning of 2007: 144/14405=0.01

at the beginning of 2008: 134/15029=0.01

Accounts receivable turnover ratio

B - sales proceeds

DZ - balances of receivables

at the beginning of 2007: 1780/(680+4794)=0.33

at the beginning of 2008: 1978/(469+3416)=0.51

P DZ - the period of repayment of receivables

N - number of days in the period

at the beginning of 2007: 360/0.33=1091 days

at the beginning of 2008: 360/0.51=707 days

Inventory turnover ratio

Z - stock balances

at the beginning of 2007: 1780/9760=0.18

at the beginning of 2008: 1978/9889=0.19

Inventory turnover in days

N - number of days

at the beginning of 2007: 360/0.18=2000 days

at the beginning of 2008: 360/0.19=1895 days

N OK - net working capital

OK - working capital

at the beginning of 2007: 15463-14405 = 1058 thousand rubles.

at the beginning of 2008: 14000-15029 = -1029 thousand rubles.

Debt capital concentration ratio

ZK - borrowed capital

VB - balance currency

at the beginning of 2007: 14405/16100=0.89

at the beginning of 2008: 15029/16273=0.92

K AVT - coefficient of autonomy

SK - equity

A - assets

at the beginning of 2007: 1695/16100=0.11

at the beginning of 2008: 1244/16273=0.07

R SK - return on equity

PE - net profit

at the beginning of 2007: 188/1695=0.11

at the beginning of 2008: 201/1244=0.16

R PRODUCTS - profitability of products

P SALES - profit from sales (rendering services)

at the beginning of 2007: 111/1780=0.06

at the beginning of 2008: 138/1978=0.07

R A - return on assets

at the beginning of 2007: 188/16100=0.01

at the beginning of 2008: 201/16273=0.01

13) Altman Model:

X1 - working capital / total assets

X2 - retained earnings / total assets

X3 - operating profit / total assets

X4 - market value of shares / debt

X5 - revenue / total assets

at the beginning of 2007:

at the beginning of 2008:

In accordance with the calculations, we note the following:

The value of the current liquidity ratio for the entire period of analysis was less than 1. Since this ratio shows how many rubles of the enterprise's current assets account for 1 ruble of current liabilities, we can say that the current liabilities of the enterprise are not secured by its current assets. The industry average coefficient for similar enterprises ranges from 0.69 to 1.95. Accounts payable includes advances on budgetary topics, for which the actual volume of work performed to date exceeds the advance amounts, so this indicator is somewhat underestimated.

Indicators of asset turnover (business activity). According to the calculations:

A low value of the receivables turnover ratio indicates the binding of funds in debt and limits the company's short-term liquidity. The value of this indicator is less than 1, while the indicative normative value is 8. The period of repayment of receivables is about 3 years at the beginning of 2007, and at the beginning of 2008 about 2 years - is unsatisfactory.

A low inventory turnover ratio indicates the presence of obsolete inventory. A high value of inventory turnover in days indicates that a large amount of inventory has accumulated in the warehouses of the enterprise. This can be explained by the use of the order accounting method, due to the long-term nature of contracts with consumers.

The appearance at the beginning of 2008 of a negative value of the net working capital indicator characterizes the inability to cover current liabilities at the expense of current assets and an acute shortage of working capital.

Balance structure indicators

The concentration ratio of borrowed capital of the enterprise shows its dependence on borrowed funds. The percentage of own funds of the enterprise, which is characterized by the coefficient of autonomy, has an extremely low value. Lack of own funds leads to real risks of non-fulfillment of obligations to creditors, suppliers and other persons.

A significant excess of accounts payable (excluding advances) over accounts receivable worsens the financial condition.

Profitability indicators

The profitability of the company's products does not exceed 10% for the entire period under review, which shows the share of profit from sales in each ruble of turnover. This indicator characterizes the efficiency of not only economic activity, but also pricing.

The return on equity for the period under review is low, due to the predominance of borrowed capital in the balance sheet structure.

Indicators of the probability of bankruptcy. Altman's Z-score was used to assess the probability of bankruptcy of an enterprise. The enterprise has the value of this indicator throughout the entire period under review in the amount of 1.28-1.18. Based on statistical data, if this indicator is less than 1.8, the enterprise has a very high probability of bankruptcy.

Based on the results of the express analysis of the financial condition of the enterprise, the following conclusions can be drawn.

The enterprise at the beginning of 2007 is not able to pay its current liabilities at the expense of current assets, which is a negative factor characterizing its instability in the market.

The company urgently needs to take measures to collect debts, as well as increase the turnover period of current assets, since the binding of money in stocks and receivables negatively affects economic activity.

The enterprise has an unacceptable capital structure due to the overwhelming predominance of borrowed capital. The lack of a sufficient amount of own funds can lead to the threat of liquidation in the event of claims from counterparties, especially since, according to the results of calculations, the enterprise has a very high probability of bankruptcy.

The profitability of the company's products for the period under review was at a low level, which may be the result of an incorrect pricing policy; the presence of a loss according to the balance sheet data can lead to negative consequences up to liquidation in accordance with the legislation of the Russian Federation. Despite the fact that the analysis of the reporting forms of the enterprise revealed a number of alarming financial indicators due to the reasons described above, there are prerequisites for their improvement.

Planned stable profit growth rates in 2008-2010. due to the following factors:

1) The interest of the state, represented by the relevant ministries and departments, in the successful operation of the enterprise.

2) Conducting a revaluation of fixed assets and receiving income from other operations, including the sale of excess assets.

3) Receipt of income from non-sales operations (mainly due to the leasing of unused non-residential premises on the territory of the enterprise for offices, trade use and other purposes).

4) Conducting an inventory of intangible assets and putting them on the balance sheet with their further commercial use.

2.3 COMPREHENSIVE ASSESSMENT OF WAYS TO INCREASE THE INVESTMENT ATTRACTIVENESS OF CJSC VSW Krasny Oktyabr

CJSC VMZ Krasny Oktyabr plans to develop a new technology for steel smelting. To do this, it is necessary to finance qualified training of the company's specialists, taking into account new modern achievements in the field of casting, as well as to purchase modern equipment. It is necessary to determine whether this investment project will be profitable. Below we consider alternative options for investing funds for the implementation of this project.

An investment project can be evaluated by a large number of factors: the situation on the investment market, the state of the financial market, the geopolitical factor, etc. However, in practice, there are universal methods for determining the investment attractiveness of projects that give a formal answer: it is profitable or unprofitable to invest in a given project.

Investment project in the amount of 1000 thousand rubles. today will allow to return 1331 thousand rubles. in three years. The internal rate of return will be 0.10, and the annual growth will also be 0.10 (Table 2.2).

Let us illustrate the process of calculating the internal rate of return using a basic example in which an investment project has a net present value of 886 thousand rubles. at a discount rate of 0.10 (see tables for cash flows). Find the discount rate at which the net present value of the cash flows is zero. Suppose the first value (arbitrary guess) is 0.10. We find that the net present value when using a rate of 0.10 is positive and amounts to 886 thousand rubles. (table 2.3).

Table 2.2 Calculation of annual return growth

Table 2.3 Calculation of the present value at a rate of 0.1

You need to change the discount rate so that the net present value becomes zero. Since the cash flows are traditional (negative followed by positive), in order to reduce the net present value of future cash flows, the discount rate should be increased (thus making the positive present value of future cash flows smaller). Let's take a discount rate of 0.20 (Table 2.4).

The net present value turned negative, indicating that the discount rate of 0.20 was too high. For the next estimate, we choose a value between 0.10 and 0.20, for example 0.16 (Table 2.5).

At a discount rate of 0.16, the net present value is zero, which by definition means that 0.16 is equal to the internal rate of return of the investment project.

Table 2.4 Calculation of net present value at a rate of 0.2

Table 2.5 Calculation of net present value at a rate of 0.16

The period during which the investor will be able to return the initial costs, while ensuring the required level of profitability, is called the discounted payback period.

If the income is evenly distributed over the years, then the payback period is calculated by dividing the one-time costs by the amount of annual income due to them.

If an investment project requires an initial investment of 300 thousand rubles. and expected to receive income in the amount of 100 thousand rubles. per year for five years, then the payback period can be found by dividing 300 thousand rubles. for 100 thousand rubles, and it will be three years.

If profits are unevenly distributed, then the payback period is calculated by directly counting the number of years during which the investment will be repaid with cumulative income.

Table 2.6 shows the calculation of the discounted payback period.

In this case, the formula was used:

where P is the current value of the cash flow

CF i - cash receipts in period n

r - discount rate

The calculation shows that over a period of a little less than four years, the investor will be able not only to recoup the initial investment, but also to ensure a return on investment at the level of 10% per annum.

Table 2.6 Calculation of the discounted payback period, in thousand rubles

Consider the application of the accounting rate of return (ARR). This method is simple and affordable. The accounting rate of return shows how many percent per year, on average, a firm earns on its investments. ARR can be calculated by dividing the project's average annual return by the average annual investment. Let us assume that cash income differs from profit only by the amount of depreciation, and we calculate the accounting rate of return, assuming that the depreciation system is linear (annually, the accountant writes off 1/5 of the capital costs as expenses). Consider the following project (Table 2.7)

Table 2.7 Calculation of the accounting rate of return

The average annual value of investments with a linear depreciation system is determined as the average between the accounting estimate of investments at the beginning and end of the period under review, i.e.: (2000+0)/2=1000

Calculate the current value of the project (NPV) at a discount rate of 10%:

The net cash flow of the investment project provides the investor with a yield of 10% per annum for 5 years and, in addition, an additional 220.2 thousand rubles. (assessed to date).

This means that the current wealth of the investor has increased by 220.2 thousand rubles.

We will prove this with the following calculation. Suppose an investor implementing this project attracts a loan in the amount of 2220.2 thousand rubles. Moreover, 2000 thousand rubles. directs for capital investments, and 220.2 thousand rubles. expects to use as a net effect of a future project at its discretion.

Let's show that the cash flow of the project's income will provide the investor with the return of this loan and the payment of interest (Table 2.8).

It is easy to see that the amount of 2220.2 thousand rubles. is the maximum amount of credit that the project's net cash flow can "serve".

Now, based on the same initial data, we calculate the IRR:

Let's compare NPV and IRR criteria. Both criteria characterize the effect of project implementation. In a situation where it is necessary to evaluate a separate investment project, both criteria lead to a single decision (table 2.9)

Table 2.8 Calculation of the loan amount

Table 2.9 Reconciliation of NPV and IRR criteria when evaluating an individual project

Thus, the investment project can provide an increase in the wealth of the investor.

The comparative analysis of the enterprise over the past three years of work (from 2007 to 2009) allowed us to draw a number of conclusions and recommendations.

To date, the analyzed enterprise, in general, is assessed as solvent and has a satisfactory balance sheet structure.

During the analyzed period, profitability increased significantly in all respects.

At the moment, the company has a fairly strong property potential. The company does not experience difficulties with the sale of products.

Steady state of own funds. For the entire analyzed period, the enterprise maintains a stable value of its own funds.

All sustainability and liquidity indicators are not below critical values.

In this regard, as a negative trend, we can note the decreasing efficiency of the use of enterprise funds, expressed in an increase in the asset turnover period, the period of receiving receivables.

To improve the efficiency of the use of enterprise funds, it is possible to recommend the following activities:

In order to pay off receivables, an enterprise should organize work to analyze the structure of receivables, the prescription of its occurrence, the reasons for its formation, the reality of collection, etc., and active interaction with debtors.

Stock optimization. For this purpose, it is necessary to identify what part of current assets is mobilized into reserves, determine their liquidity and outline possible ways to use them. An increase in inventories due to unreasonable diversion of funds from turnover leads to an increase in accounts payable and a deterioration in the financial condition of the enterprise.

Improvement of contractual discipline. When concluding contracts with suppliers, it is necessary to clearly stipulate the terms of delivery and payment for services, with buyers - the terms, form of payment and terms of payment.

Activation of the work of the legal service of the enterprise on unpaid contracts, on the collection of fines, penalties, competent conclusion of contracts.

It is advisable to develop a payment calendar - at the same time, it is necessary to establish a clear order of payments, depending on the planned receipts in such a way as to ensure a sufficient level of current liquidity ratio by the time the financial statements are prepared.

CONCLUSION

Investments are a time-consuming process, therefore, when analyzing the investment attractiveness of an enterprise, it is necessary to take into account:

The attractiveness of the enterprise in comparison with alternative enterprises in terms of maximizing the income of the owners of the enterprise with an acceptable degree of risk, because this is the main goal for financial management

The riskiness of the implementation of investments, because the longer the payback period, the riskier the investment project

The time value of money, as over time, money changes its value.

In the course work, an assessment of the financial attractiveness of the enterprise CJSC "VMZ" Krasny Oktyabr" was carried out.

CJSC VMZ Krasny Oktyabr plans to develop new technologies for steel smelting. To do this, it is necessary to finance qualified training of the company's specialists, taking into account new modern achievements in the field of casting, as well as to purchase modern equipment. It is necessary to determine whether this investment project will be profitable. The course work considers alternative investment options for the implementation of this project.

As a result, it was concluded that the investment project can provide an increase in the investor's wealth.

APPENDIX

BALANCE SHEET

GAINS AND LOSSES REPORT

LIST OF USED LITERATURE

1. Federal Law of February 25, 1999 No. 39-FZ "On investment activities in the Russian Federation carried out in the form of capital investments" (as amended and supplemented on January 2, 2000, August 22, 2005) // Garant system.

2. Anshin V.M. Investment analysis: Educational and practical guide. - M: Delo, 2007. - 492 p.

3. Financial management: a textbook for universities / Ed. G.B. Pole. - M. Finance, UNITI, 2007. - 518 p.

4. Stoyanova E.S. Financial management: theory and practice: textbook. - M.: Prospect, 2006. - 656 p.

5. Blank I.L. Investment management: Training course.-- Kyiv: Nika-Center; Elga-N, 2008. - 112 p.

6. Idrisov A. Planning and analysis of investment efficiency.--M.: 2007. - 186 p.

7. Morozova T.V. Calculation of the discount rate // Accounting.-- 2004.-- №3. - S. 12-27.

8. Bogatin Yu.V., Shvandar V.A. Investment Analysis: Textbook for High Schools. - M.: UNITI-DANA, 2007. - 541 p.

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Investments are the basis of any modern enterprise. In order for potential investors to agree to invest their money in the development of the company, it is necessary to show its stability, reliability, profitability, and competitiveness. For this, qualitative indicators of investment attractiveness are used.

What is investment attractiveness

A set of financial, economic, commercial, qualitative indicators that show the stability of development and growth of the company, the positioning of the organization in the domestic and foreign markets is defined as the investment attractiveness of the enterprise.

The implementation of this concept has the following goals:

• determination of the current state of the organization and the direction of its development in the future;
• preparing measures to attract new investors;
• direct attraction of additional funds for specific projects.

Investments can be made in existing resources (technical renovation of production facilities), develop new ones, and expand existing working areas.

In other words, investment attractiveness is a series of actions that must be taken to show a potential investor the real benefits and future prospects after injecting capital into a company.

Methods of determination

The normal development of the enterprise requires constant renewal of existing production assets and capacities. Doing this at your own expense is not always possible. Therefore, it is advisable to attract third-party capital for these purposes. To do this, it is necessary to prove that the investment attractiveness of the company is high enough.

The definition of such a criterion can be carried out by various methods.

integral method

All activities of the organization are grouped into certain blocks and their effectiveness is evaluated. Three main independent sections are combined - general, special, control. Market position, reputation, dependence on various suppliers, management efficiency are considered.

expert method

It is characterized by a set of universal evaluation criteria applied to a specific business entity in order to identify its strengths and weaknesses in the process of financial development and formation. Includes the current state of affairs, strategic planning, development, the possibility of reform.

Cash flow discounting

It is a set of estimates of future benefits in monetary terms from investment, as well as the value of the investment object in the future after the direction of cash flows. External and internal factors of influence are determined, recommendations are made to improve the financial attractiveness of the organization.

The choice of a specific assessment method is carried out based on the scope of the organization, the presence of the maximum number of indicators, using which you can comprehensively disclose economic activity, determine strengths and weaknesses, and show the reliability of investments.

Openness, reliability, stability, financial growth, increasing production have a positive effect on the interest of potential investors in the development of the enterprise. Indicators that influence the final decision of a potential investor should comprehensively disclose the activities of a particular unit. The main criterion is the presence of a stable income.

You need to understand that many people want to receive capital investments for development. There is huge competition in this market segment. Therefore, in order to receive the desired money for development, it will be necessary to convince investors of their reliability, the benefits of investments, and guarantees of making a profit. To do this, you will have to perform a detailed analysis of the main aspects of economic activity, namely:

• the level of turnover of existing assets;
• real return on equity;
• the level of financial stability;
• liquidity indicators of assets.

Such data will help to unfold before a potential investor a real picture of the company's life, the cycle of return on investment, and the level of expected profitability.

Factors for assessing the attractiveness of an enterprise

To determine the reliability and profitability of investing in a particular investment object, it is advisable to perform a comprehensive assessment of the financial, commercial, production, reparation state of the unit. To do this, it is necessary to gradually determine the performance and reliability of individual areas.

The criteria for investment attractiveness are determined in the process of performing the following actions:

1. Estimates of the financial position of the company. Cash flows, value indicators of existing assets, the presence of net profit, long-term contracts are checked.
2. Evaluation of the production aspects of the enterprise. The state of fixed production assets, their productivity, the need to update or replace the means of production.
3. Checking management factors. Organizational structure, labor costs, employee productivity, the ratio of labor costs to total costs at the current level of productivity.
4. Determining the market position of the firm. Availability of contracts with major suppliers, partners, sales volume, the possibility of competition with other similar companies, sales of products abroad, the level of business reputation.
5. Available legal factors. Availability of title documents, certificates, licenses, permits, expert opinions. Lack of open litigation with other companies, individuals for large sums.

The final conclusions regarding the manifestation of interest in a particular organization for the injection of new capital will be made on the basis of an analysis of all factors to be assessed. Qualitative analysis contributes to inclining the investor to your side and attracting the desired funds.

How to attract investors

The high level of competition in the investment market forces potential borrowers to use all available ways to raise new capital. But here you also need to take into account the wishes of the other side, be able to win attention, gain confidence, quickly show key performance indicators of your activities.

To draw attention to your project and attract external capital to it, you should initially follow a few simple rules.

1. Decide what investment you are applying for. Foreigners, individuals, small and large companies, the state can act as investors in a business. Each of them pursues certain goals, sets conditions, terms for the return of invested money.
2. To convey to the potential addressee information about the reliability of the project. A well-formed business plan will show transparent indicators of the organization's performance in terms of cash flow. A detailed analysis of the future sales market, the needs for a product (service) play an important role in making a decision.
3. Preparation of information documents. The start of any project begins with documentation. It is necessary to prepare all the necessary documents (if you need to receive them, draw up a step-by-step plan for how all this will be carried out). We need only up-to-date information. Do not overload with unnecessary papers - this is annoying and causes rejection.
4. Preparation of a distribution plan for future investments, as well as forecasts of their payback. This should be done with reference to real prices on the day of the offer.
5. Flexibility. You can always find a compromise solution, you should learn how to quickly adapt to the needs of a potential partner. It is possible that a potential investor may have their own vision for the project. There is no need to immediately reject such proposals.
6. Acceptance of criticism. Persistence, perseverance and determination will undoubtedly be appreciated by the future investor, but you should not take a stand and show offense if you point to specific mistakes or shortcomings.

Only well-thought-out steps, a little pressure, perseverance, a well-formed package of documents, constant communication with the right people will help launch almost any project.

How to increase investment attractiveness

Additional capital is required not only for new, but also for existing companies. To obtain it, it will be necessary to increase the level of economic and commercial reliability, to create normal conditions for further long-term partnership. To do this, the company needs:

• analyze the level of the existing financial condition, determine the factors that negatively affect the attraction of new investors;
• determine the demand for manufactured products (services rendered) in the market, prepare measures for their adaptation to modern conditions;
• demonstrate the openness of the financial system, the ability to trace the movement of cash flows, the transparency of accounting;
• take measures to optimize unprofitable assets, increase productivity, reduce unproductive costs;
• to ensure a high level of business reputation, recognition of the company in the domestic and foreign markets (possibly by replacing the existing brand).

You can increase the chance of receiving investments by confirming the ability to quickly adapt to the requirements of the modern market, having a clear action plan for this, as well as taking specific steps towards its implementation.

You can get investments in business development only when potential investors notice real signs of a positive development of the enterprise. To do this, you will need to study the current market, rebuild your production, think through every step on the path to improvement. This is the only way to make a profit, as well as to ensure the profitability of investors' investments.

In order for the company to develop well, it needs to attract external capital. And since any investor is interested in the profitability of his investment, a careful calculation of profitability and risks is necessary. He seeks to minimize the chances of losses, and therefore evaluates the effectiveness of investments in the project, that is, considers such a thing as the investment attractiveness of the enterprise.

In this article you will read:

• What is the essence of the investment attractiveness of the enterprise
• What factors influence the investment attractiveness of an enterprise
• How to analyze and evaluate the investment attractiveness of an enterprise
• What methods to use when assessing the investment attractiveness of an enterprise
• How to increase the investment attractiveness of the enterprise
• How to approach writing a business plan to showcase your business to an investor

What is the investment attractiveness of the enterprise

The concept of the investment attractiveness of an enterprise includes a set of performance characteristics that reflect the profitability of cash investments in the development of the company. The main indicator for this is a predictable and stable income. And the business plan must be clearly defined and well thought out, many nuances taken into account, financial indicators are given, then there is a high chance that in the face of great competition for additional sponsorship, preference will be given to your company.

An assessment of the investment attractiveness of an enterprise is needed to finance or lend to regional tasks or a promising industry by various corporations or foreign banking capital. But the very concept of “investment attractiveness” does not exist in the economy, it is abstract, although it has a large knowledge base and methodology. Indeed, for the bank and for private capital, completely different indicators are needed. So for banks, first of all, the speed of return and solvency are considered, and after the repayment of the amount and payment of interest, further profit is practically not used, for the shareholder, the payback in the total income of assets from the active and systematic work of the enterprise is more important.

The next difference is the estimated investment amount. Current net worth (NPV) and internal rate of return (IRR) are considered. And, depending on the point of view, if there is a fixed amount of investment, the NPV indicator is taken, and if long-term and dynamically changing investments are planned, then IRR is considered.

When determining the economic condition, financial indicators are taken, which consist of:

• liquidity, which shows the speed with which the company, if necessary, can turn its own assets into money;
• property status - the total share of money in circulation and outside it at the enterprise;
• business activity (describes all the processes from which the enterprise makes a profit);
• financial dependence - how much the functioning of the enterprise depends on external investments and whether it will work without additional financing;
• profitability. This indicator reflects the ability of the enterprise to properly use its capabilities and resources.

The process of assessing the investment attractiveness of an enterprise must necessarily include the number of staff, resource provision, competitiveness of products, the level of production workload, the natural wear and tear of equipment, the distribution of funds, which should be divided into production and basic, as well as a number of other indicators.

When assessing the investment attractiveness of an enterprise, riskiness must also be taken into account. It can be manifested by a decrease in income, increased competition, loss of liquidity, unfulfilled obligations, a change in pricing options.

Investment policy, as many leading economists believe, should be shaped by someone else's example. This makes it possible to calculate the required level of investment for the implementation of the project in order to obtain the expected income that will satisfy both parties.

However, investment attractiveness is calculated not only for enterprises, but also for entire industries and regions of countries. A gradation is made so as not to confuse concepts, at macro, micro and meso levels. Macro level - the country as a whole, meso - a separate region, micro - target enterprise. At each division, the characteristics of investment attractiveness change, so the investor must separate them and see the positive and negative sides.

What factors influence the investment attractiveness of an enterprise

Influencing factors are conditionally divided into internal and external. For external factors, the result does not directly depend on the work of the enterprise. This may be the investment attractiveness of the territory (country or region), the economic and political situation, the level of corruption, infrastructure, the magnitude of human potential. Investment attractiveness is usually assessed by large rating agencies, such as Expert RA, Standard & Poor's, Moody's.

On a smaller scale, the factors are estimated for individual industries. Assessment of investment attractiveness is based on:

• the level of competition in a given industry;
• current development;
• dynamics and structure of investment investments;
• current stage of development.

This is a very important stage in the analysis, because it is at this moment that the main indicators, the rate of growth in the price of products and production, the state of the industry, innovative solutions and the R&D base are considered.

The internal factors are directly affected by the economic activity of the enterprise, and they are the main lever in assessing investment attractiveness. We can divide them into five points:

The financial condition of the enterprise is assessed:

• the ratio of borrowed and own funds;
• current liquidity ratio;
• asset turnover indicators;
• return on sales based on net profit;
• own capital based on net profit.

How the company is structured and organized:

• the percentage of minority among the owners;
• the influence of the state on the processes in the company;
• openness of financial and internal information;
• indicators of paid net income by the enterprise for the last time.

How innovative are the products provided.

Constant formation of cash flow.

Constant expansion of the scope of activities and products.

Expert opinion

How attractive are Russian enterprises for foreign investors

Patrick de Cambourg, president of the international company Mazars.

Russia currently has an attractive climate for investment, but it needs guarantees of stability, both economic and political. And we also need a vast sales market, mainly the capital and St. Petersburg, where there is a large population and the largest number of income-generating enterprises. Today, demand in many industries is many times greater than supply, such as the automotive, aviation and retail industries.

Foreign capital wants to co-create enterprises with large domestic companies and share resources. Basically, these are two areas: natural resources and technological cooperation. Investors, in addition, are interested in taking into account the traditions that exist in the research and implementation of innovative technologies, increasing production capacities.

Analysis and evaluation of the investment attractiveness of enterprises

The enterprise develops sequentially and linearly, and its life can be conditionally divided into segments of the success of its various products. These stages differ in the amount of profit and turnover:

• childhood - low growth rates, financial indicators are more minus;
• youth - acceleration of turnover, the first stable profit;
• maturity - cessation of growth, maximum profitability;
• old age - turnover and profits fall.

Such a life cycle usually takes place within 20-25 years, then there is a closure or rebirth into a new way of life with a new team and leadership. And the exact definition of the current cycle gives the key to solving the problems specific to each of them, and also allows you to determine the investment attractiveness of the enterprise.

The childhood stage is characterized by the difficulty of survival, the beginning of networking, the organization of the process of obtaining income, the search for funds for development in the person of an investor or philanthropist. It can be either a short-term loan or a long-term investment.

The stage of youth gives the first money and allows you to reorient from survival to development. At this stage, medium and long-term investments will be useful, which will give the necessary impetus.

In maturity, an enterprise achieves maximum profitability with a developed technical and economic potential, large volumes are processed, it is practically self-sufficient and does not need third-party financing. Managers must take into account the natural aging of products and develop new schemes for development and implementation through targeted financing or industrial investment. This may be the purchase of shares in a competing or promising company and transformation into a holding company with an emphasis on managing a portfolio of shares and securities.

The most investment-attractive enterprises are in the first stages of development, childhood and adolescence, as well as the beginning of maturity, in the so-called early maturity. When full maturity is reached, investment can only be considered in the case of high growth rates and marketing prospects, or in the case of small investments in refurbishment and modernization, when there are indicators of a quick payback.

The old age period is most often not invested, unless there is a big diversification of goods or a change in direction of activity. Then we can even talk about cost savings compared to a young enterprise due to the already developed infrastructure.

A specific development cycle is determined by multiple analysis of production volumes, the total number of assets, the amount of equity capital and the analysis of past years. Through these changes, a conclusion is made about the current development. Enterprises have the highest rates in youth and early maturity, halting at full maturity and decreasing towards old age. When evaluating the investment attractiveness of an enterprise, a thorough analysis of the financial component of the activity is carried out. The return on investment and profitability are approximately calculated and the most dangerous financial risks are determined.

Evaluation of financial success goes through the analysis of aggregate indicators that show its effectiveness in accordance with further goals, which include investment injection. For the development of an enterprise, a unified view of tactical and strategic planning is needed, and the most important indicator of this is the analysis of:

• turnover of assets;
• indicators of profitability of capital;
• financial stability;
• liquidity of assets.

The effectiveness of investment is determined mainly by the speed of turnover of invested assets when working within the enterprise. This is influenced by many extraneous factors, including an effective marketing, financial and production strategic plan.

Asset turnover

Through such indicators, an assessment of the turnover of assets is expressed:

The turnover ratio of all assets in use. It is calculated through the ratio of the volume of sales of its products, goods or services to the average value of assets. These indicators are taken for one period according to the arithmetic average or weighted arithmetic average.

The turnover ratio of specific assets. The ratio of the volume of goods or services sold to the average value of current assets is taken.

Turnaround time. The calculation is made by taking a separate period (usually one calendar year is taken).

duration. A period of 90 days to the previously calculated turnover ratio of current assets.

If there is a dynamic decrease, then this leads to a longer return of turnover and shows a negative development value and, therefore, an additional source of external funds. The required level of additional investment is calculated by multiplying the volume of the sold product with the duration of turnover in the current and past periods and divided by the number of days.

Return on capital

As already mentioned, the main goal of investing is to achieve the maximum return on funds in the process of their use. To see all the profitable opportunities of a subsidized enterprise in proportion to the invested funds, certain indicators are used:

Profitability of all assets used. The amount of profit less all taxes paid to the average amount of assets used.

Profitability of current assets. Total net income to the average amount of current assets.

Profitability of fixed assets. Net profit to the average valuation of fixed assets.

Profit from sale. Net income from sales.

profit indicator. Balance sheet profit, which is obtained before paying taxes and loans, and the difference between the amounts of used and intangible assets.

Own return on capital. The amount of net profit to the amount of equity capital. This item reveals the ability to manipulate your capital in relation to the total.

Financial stability

Its analysis allows considering the risks in the structural formation of investment resources and determining the most appropriate nature of financing. The following indicators are used:

autonomy coefficient. It is calculated by the dependence of the amount of equity capital on all assets used. It reflects the degree of involvement of its assets in the volume of formation of common ones.

The ratio of borrowed and own funds.

Long-term debt ratio. The amount of debt is more than a year to the sum of all assets.

Liquidity of assets

The ability of an enterprise to pay short-term obligations with its assets, thereby avoiding bankruptcy. This indicator is insurance against risks in case of non-compliance with requirements for a short period of time. The basis can be taken as current liquidity, calculated as the ratio of the amount of assets to debt. A number of indicators also apply here:

Absolute liquidity. The amount of funds and investments to the total debt.

Short term liquidity. The amount of funds and investments with receivables to the amount of total debt.

Accounts receivable turnover. The volume of products sold with postpayment to the average amount of accounts receivable.

Accounts receivable turnover period. The number of days in the allotted period to the turnover ratio.

Investors always ask: "Why do you need money»

Oleg Dobronravov,

Director of Westland Finance Advisory, Moscow-Amsterdam

The most common question that can be heard from an investor is: “Why do you need money, and why don’t you take it from the bank?” And it is necessary to prove that it is with the money invested that the company will make a breakthrough and achieve unprecedented heights. And bank employees, in turn, ask similar questions, for example: what will you do with this money? And in this case, you need to answer in a slightly different way, which, they say, to replenish working capital and refinance or implement an internal development program.

It doesn't matter if it comes true or not, they will need clear plans, a list of the top management, sales figures, experience of top managers, the ability to manage assets and resources. The personal life of employees is not interesting, only business matters.

What methods for assessing the investment attractiveness of enterprises should be applied

Today, there is no objective assessment of the investment attractiveness of an enterprise, both due to its little study, and due to the lack of a working methodology in which a general list of indicators would be described, and it would be possible to unequivocally resolve the issue. Those that exist at the moment take into account different data, the process of processing and analyzing the results is different. Next, an analysis will be given of the currently existing methods for assessing the investment attractiveness of an enterprise, taking as a basis the stable development of an enterprise in the future, resistance to fluctuations and the influence of external factors on work.

Regulatory method

This can be any set of documents installed on the state market, as well as reporting documents. There are certain methodological recommendations here to determine the effectiveness of the project, but, unfortunately, in our country this type is underdeveloped and does not tend to develop soon. In the literature on this issue, there is a list of indicators for fixing the effectiveness of an investment. Usually this method is used after bankruptcy, so it does not work well in calculating the attractiveness of the company.

Discounted cash flow method

There is an assumption that the amount invested is based on the calculation of income forecasts, which makes it possible to calculate the benefit in advance. Estimated return is calculated by discounting at a rate that reflects the riskiness. So you can calculate the amount needed to implement the idea, its reality and the need for a particular enterprise. This method is most often used for miscalculation and selection of applicants for investment, since it makes it possible to quickly determine the development potential. The only downside is the fleeting forecast, which can quickly become outdated due to changes in demand, the law, the tax base, or rising prices.

Method of analysis based on external and internal factors

These 4 stages are interconnected and complement each other:

Such a multilateral approach allows you to carefully understand the issue, but when identifying factors and analyzing them (points 1 and 3), very often the subjective decision of the expert, made on the basis of questionnaires and surveys, comes to the fore, which sometimes greatly reduces the accuracy of the assessment.

Seven-factor model for assessing investment attractiveness

Another effective technique for assessing the investment attractiveness of an enterprise includes seven big points, which is based on the return on assets, since it is the main criterion for attractiveness by which the composition, structure, quality and efficiency of resource use can be assessed.

Here are the postulates of the dependencies of indicators for clarity in the table:

The analysis of such dependencies gives an understanding of the resulting dynamics. And the final conclusion is simple: higher profitability - higher efficiency and, therefore, attractiveness for investors. The final estimate is integral-indexed, obtained by multiplying the calculated parameters. However, these calculations cover only internal, albeit with high mathematical precision, numerical indicators of success. The term "investment attractiveness of an enterprise" is much more multifaceted and broad for the framework of some financial calculations.

When a list of attractive companies is formed, they are sorted in descending order. The final assessment of the investment attractiveness of the enterprise is obtained from a complex sample of performance indicators and the general state of income for each. Of the influencing factors on the outcome, one can single out the nature of lending, where it is necessary to increase the weight of indicators for liquidity, solvency in comparison with profitability and equity, as well as the payback period limit, because with an increase in the period, the overall rate of return also increases, compared with the current one, and with As the term decreases, liquidity comes to the fore.

Integral assessment of investment attractiveness based on internal indicators

In this option, relative internal indicators are taken into account, produced in five stages.

• indicator of the effectiveness of the use of fixed and working capital,
• the financial condition of the company,
• how labor resources are used,
• what is the investment activity,
• how efficiently the business is conducted.

For each, a calculation is made to derive integral indicators. The final assessment of the investment attractiveness of the enterprise is obtained on the basis of the final 2 stages:

In the first stage, all indicators are taken and their weight is calculated, then potential opportunities are worked out for the entire period of operation of the enterprise, and the end of the first stage is the derivation of a comprehensive assessment for each indicator.

The second stage is the calculation of the final integral indicator, which serves as an estimate of investment attractiveness.

An objective assessment of the investment attractiveness of an enterprise is the main advantage of this method, because the result is one figure based on a large worked volume, which is very easy to interpret. The downside is isolation from external indicators, since only internal ones are taken into account.

Comprehensive assessment of the investment attractiveness of the enterprise

The methodology for assessing investment attractiveness is, in fact, an analysis of all areas of the enterprise and the combination of the obtained indicators into a common result. It includes 3 sections: general, special, control.

General section: assessment of strategic activity and its effectiveness, analysis of shareholders, management, degree of influence of major buyers and suppliers, study of the company's market position, its reputation. For each factor, except for strategic efficiency, marks are given, for convenience, expressed in points. Strategic activity is evaluated according to the dynamics of financial and economic indicators of the organization.

Special section: here the effectiveness of the enterprise as a whole is evaluated; uniformity of economic development; innovative, financial, operational activities; profit parameters. This stage is divided into:

• building a dynamic matrix based on the indexes of the main indicators: final (result of activity), intermediate (result of the production process), initial (number of resources involved);
• analysis of the uniformity of the increase (decrease) of performance indicators;
• calculation of the coefficients of innovative, financial and operational activities;
• assessment of the quality of income by calculating solvency and profitability;
• the scores obtained in the evaluation of all parameters are summed up with the scores of the general section.

Control section. Here, at the final stage, the coefficient of investment attractiveness of the enterprise is calculated (the points obtained at the previous stages are multiplied by weight coefficients and summed up), and the final decision is made on its basis.

The advantages of this technique:

• complex analysis;
• coverage of all indicators;
• conclusion of the final integral indicator.

subjective decisions of experts when grading (leveled by adding absolute and relative indicators of business activity).

In practical work, the calculation of the investment attractiveness of an enterprise usually consists in a simple financial and economic analysis of the object. There are not only theoretical calculations, but also a practical result.

The detail and detail of the analysis are directly dependent on who is involved in it. As a practical example, one can cite an assessment of the investment attractiveness of the issuer of bills and its criteria.

These calculations are an abbreviated form of analysis of financial and economic activities, helping the investor to determine the attractiveness of the organization as an investment object in a short time.

But this approach only assesses the current position of the organization, not allowing to answer a number of questions that are extremely important for the investor:

• How attractive is the organization as an investment object?
• What is the company's market price?
• What is the cash flow from these investments?

These questions are quite complex. To get an answer to them, it is necessary to develop and apply complex analytics.

For example, an investor should pay attention to the following points:

• how professional managers are and whether they can work in a team;
• whether the concept is unique, how clear the awareness of the promotion strategy is, and whether there is a detailed business plan;
• how competitive is the enterprise, does it have advantages over other companies;
• presence (absence) of profit growth potential;
• how transparent are the financial and management mechanisms of the company;
• how the share capital is protected;
• the presence of the potential for high dividends from invested capital.

And this is not all the questions that need to be covered. In order for the analysis to be as reliable and reliable as possible, the list of criteria will need to be increased. The goal is to cover all aspects of the organization's business activities.

The best results are obtained by peer review, but in recent years it has been used less and less. Although it is necessary to introduce it into the complex of works when analyzing the investment attractiveness of the enterprise.

Of all the above criteria, the assessment of the market value and the amount of future dividends can cause the greatest difficulties. But these parameters need to be known. Since the market value, for example, will give a hint about the potential growth of the enterprise and, accordingly, about the amount of future income.

Calculating the current market value is a very complex and labor-intensive task. To make it easier to solve it, you need to remember three common approaches to business valuation: costly, profitable and comparative.

Methods for assessing investment attractiveness are constantly evolving, since an elementary analysis of financial and economic activities no longer meets the needs of investors. Therefore, new approaches to analysis regularly appear, and in the future it is planned to develop such a set of measures that will include a qualitative and quantitative assessment. It is also expected to combine several approaches to determine the size of future cash flows.

The practitioner speaks

When evaluating a company, an investor takes into account many factors

Tatyana Sadofyeva,

Director of PRADO Corporate Finance, Moscow

In order to attract investments, it is necessary to obtain data on the value of the business that is planned to be used as an investment object. A financial specialist (your employee or an external expert) will be able to give the necessary assessment by analyzing factors such as:

• annual increase in sales growth;
• operating profit margin;
• volume of investments;
• R&D costs;
• dynamics of working capital;
• depreciation deductions;
• level of competitiveness;
• various macroeconomic and specific risks.

The weight of all these parameters is directly dependent on the specifics of production, the competitiveness of the enterprise, its age. If we analyze a young company that offers innovative products and has not yet passed the critical break-even point, the forecast of sales growth is of primary importance. Considering an already established organization with a stable profit and a strong competitive position, an expert, wishing to predict the value of financial flows, will rely on operating profit data for the past few years. There is also a methodology for estimating the value of a business that suffered losses in the year preceding the analysis.

How to increase the investment attractiveness of an enterprise

Increasing the investment attractiveness of an enterprise is a laborious and long process, consisting of the following stages:

Analysis of the level of economic development and the general characteristics of the company:

• assessment of the value of the asset, its structure, volume and composition of intangible and non-current assets;
• analysis of production: production capacities, the possibility of their growth, the degree of modernization and wear of production tools, technology.
• personnel level: qualification, staffing level, provision with employees.
• innovations: determination of their presence and use in the production process, the possibility of implementation.

Characteristics of the market position and the level of competitiveness of products:

• the size of the market and the place that the company occupies on it: assessment of the competitive environment, identification of market leaders, study of the strengths and weaknesses of the organization, prospects for future growth and consolidation of the achieved positions;
• the quality of the manufactured product, its competitive stability - analysis of similar products, increasing the level of competitiveness.
• study of the company's pricing strategy.

Financial analysis of the state and results of the organization:

• assessment of business activity, liquidity, sustainability, solvency and profitability of the enterprise;
• calculation of the results of financial activities: the amount of current profit, development potential and performance efficiency.

An organization can draw up a plan and implement a number of measures to increase its investment attractiveness. For this you can use:

• careful long-term strategic planning;
• business planning;
• application of expert assessment of lawyers to bring title documents in line with the law;
• analysis, creation and evaluation of credit history;
• creating a more harmonious structure of the company through reform.

To determine what measures the organization needs to increase investment attractiveness, it is necessary to assess the state of the enterprise. This analysis allows:

• identify the strengths of the organization;
• calculate the risks and weaknesses in the state of the company at the moment (also on the part of the investor);
• develop measures to increase investment attractiveness, increase competitive advantages and increase the efficiency of the company.

In the course of this diagnostics, such areas as management, production, finance, and sales are analyzed. The area of ​​activity of the organization associated with the maximum risks and having the largest number of weaknesses is determined. Measures are being developed to strengthen the situation in weak areas.

It is also necessary to pay attention to the legal examination of the enterprise. To assess the investment attractiveness of an enterprise, the areas of expertise can be:

• confirmation of ownership of real estate (land, buildings, etc.);
• the correctness of the drafting of constituent documents (the rights of shareholders, the authority of the management of the organization);
• transparency, correctness and legal cleanliness of accounting for rights to the company's securities.

After the examination, inconsistencies of the above directions with the norms of the legislation of the state are determined. Eliminating these inconsistencies is an extremely important step, because investors, assessing the investment attractiveness of an object, attach significant importance to legal diagnostics. For example, it is very important for a lender to see proof of ownership of the property to be pledged. Direct investors who buy blocks of shares in a company pay attention to the rights of shareholders and corporate governance in general, because they need to control the spending of their investments.

The examination of the current state of the organization becomes the basis for the development of a strategic plan.

The strategy is the main plan for the growth of the organization, developed for 3-5 years. It formulates both the leading goals of the organization in general and the main activities and systems (promotion, production, sales). The main qualitative and quantitative criteria are singled out. A strategy helps an organization make plans for shorter periods of time without departing from the main idea. For a potential investor, the strategy shows the organization's real view of the long-term prospects and the compliance of enterprise management with external and internal factors.

Taking a long-term strategic plan as a basis, the organization proceeds to the formation of a business plan. It thoroughly understands all areas of the organization's activities, provides a justification for the amount of required investments and a financing model, the expected effect for the company. The scheme of financial flows formed in the business plan helps to assess the organization's ability to return loan funds to the investor-creditor, taking into account interest. Owner investors can use a business plan to analyze the company's value, explore the cost of investments and justify potential growth.

For example, one large enterprise in the North-West, operating in the glass industry, developed a comprehensive business plan in the course of cooperation with a venture investor. Despite the low price of assets in comparison with the size of the required investments, the investor perceived the organization as investment attractive, because the business plan provided a rationale for the possibility of increasing the organization and increasing the cost of capital.

In the eyes of investors, the credit history of the enterprise is also of great importance, since it means that the organization has practical experience in mastering investments and fulfilling its obligations to lenders and investor-owners. Therefore, the measures taken to form such a history would be appropriate. For example, a company may arrange for the issuance and redemption of a relatively small bond issue with a short maturity. As soon as it is repaid, the organization in the eyes of investors will reach a qualitatively different level. Because this will characterize her as a responsible creditor who fulfills her obligations. After that, the company will be able to attract loan funds on more favorable terms.

One of the most time-consuming measures to increase the investment attractiveness of an organization is the implementation of reform (restructuring). In general, the reform combines a set of measures to fully bring the work of the enterprise in line with the changing market conditions and the strategic development plan.

Restructuring is most often embodied in several directions:

Change in share capital. This measure includes actions to improve the capital structure: division, consolidation of shares, reform opportunities prescribed in the Law on Joint Stock Companies. The result of these actions is an improvement in the manageability of an organization or group of enterprises.

Change of organizational structure and management methods. This path of restructuring is aimed at improving the management processes that provide the main functions of an efficient company and the organizational structures of the company, in which new management techniques are introduced. Reformation of management systems and organizational structure may consist of:

• splitting the business into smaller companies and other modifications of the organizational structure;
• identification and removal of unnecessary links in management;
• adding new links to management processes;
• optimization of information flows;
• other additional measures.

The reformation of production combines a set of measures from the above areas.

Increasing the investment attractiveness of the enterprise before its sale

Special mention should be made of the pre-sale preparation of the company. Then the increase in investment attractiveness is carried out to increase the value of the enterprise. Given the above, we can conclude that the process of pre-sale preparation is clearly regulated, although it is laborious.

The organization creates a program to increase investment attractiveness, focusing on its individual criteria and the investment market. The implementation of this program accelerates the attraction of financial resources.

How to develop an effective business plan for the investment attractiveness of an enterprise

Step 1. Development of a preliminary business plan.

Briefly describe the essence of the current organization or business of the creator of the project, provide an economic justification. For example, it is planned to introduce a new product - tiles. The creator of the project knows that there is a shortage of this type of product on the market and there is a demand, which means that the sales market has already been analyzed. The economic justification must necessarily include the potential amount of income and expenses, the payback period of the object.

This document is usually 1-3 pages long. If you have all the necessary data, then the calculations and creation of an initial business plan will take an expert from two to eight hours.

Step 2. Development of a complete business plan.

Taking this document as a basis, the investor will decide whether to invest in this project or not.

Unlike the first step, the second step should give complete information. For example, if the experience of the project creator was indicated in the first option, then here you need to give all the data on this issue. The size of the business plan at this stage is about 20-35 pages.

Step 3. Development of a detailed business plan.

It is formed when the project has already been approved by the contributors. It is a detailed program of action. For example, guided by the concluded contracts with suppliers, it includes the terms of delivery, equipment adjustment, reaching the planned capacity. It is made with a deadline of one year, and adjustments are made every month. Drawing up a detailed business plan is carried out after a positive decision is made by the investor, in contrast to a complete one, for which the approval of the investor is sufficient.

Please note: for ease of orientation, the business plan must have a clear structure and include all the necessary sections. All the nuances of work, schemes and methods should be described there.

The use of third-party resources (investments) is necessary for the effective operation of organizations. The stable development of the company requires constant investment in production, innovative developments and activity in other areas of activity. In order to attract third-party resources without problems, you need to monitor the investment attractiveness.

Author information

Patrick de Cambourg, president of the international company Mazars. Field of activity: consulting services in the field of audit, financial transactions and taxation. Form of organization: partnership (includes 650 associate members - financially independent companies operating under a single brand). Territory: 56 countries around the world, including Russia. Number of employees: 12,500. Annual turnover: 773.6 million euros (in the 2008-2009 financial year). Presidential tenure: since 1983.

Oleg Dobronravov, director of Westland Finance Advisory. Field of activity: conducting debt transactions, capital raising transactions, optimization of the loan portfolio, development of corporate structure and management projects, asset management. Territory: offices in Moscow and Amsterdam. Headcount: 3. Deal value: $300 million (2009). Main clients: Sudostroitelny Bank, RTM, JFC, Perekrestok chain of stores, Rosleasing Association. Director experience: since 2005.

Tatyana Sadofyeva, Director of PRADO Corporate Finance, Moscow. PRADO Corporate Finance provides assistance in raising finance and supporting transactions. Included in the strategic partnership of companies "PRADO Banker and Consultant", formed in 1994. PRADO Group provides financial and management consulting, audit, corporate training, recruiting, and provides banking services.