Investment attractiveness is not only a financial and economic indicator, but a model of quantitative and qualitative indicators - assessments of the external environment (political, economic, social, legal) and internal positioning of an object in the external environment, a qualitative assessment of its financial and technical potential, which allows you to vary the final result.
In modern economic literature, there is practically no clarity in defining the essence of investment attractiveness and the correct system for its assessment. So, Glazunov V.I. states that the assessment of investment attractiveness should answer the question of where, when and how much resources an investor can direct in the process of making investments. Rusak N.A. and Rusak V.A. reduce the definition of the investment attractiveness of an object mainly to heuristic methods associated with the ranking of the objects under study based on the assessment of specialists (experts). Hence, the investment attractiveness concerns the comparison of several objects in order to determine the best, worst, average.
Many experts equate investment attractiveness with evaluating the effectiveness of investment projects.
The investment attractiveness of the enterprise is a certain set of characteristics of its production, as well as commercial, financial, to some extent management activities and the characteristics of a particular investment climate, the results of which indicate the feasibility and necessity of investing in it. As a rule, an investment-attractive object in which investments are made wins.
So, the primary task, the fulfillment of which predetermines success in this very difficult competition, is the maximum qualitative increase in investment attractiveness.
The first step in solving this problem will be to determine the necessary parameters of the existing level of investment attractiveness within a particular object. That is, there is a need for a high-quality and qualified assessment of multi-level investment attractiveness, namely: international, domestic, sectoral, inter-sectoral, intra-sectoral, specific enterprise, project.
The main objectives of assessing investment attractiveness are:
Determination of the current state of the enterprise and the prospects for its development;
Development of measures to significantly increase investment attractiveness;
Attraction of investments within the framework of the corresponding investment attractiveness and volumes of obtaining an integrated approach for a positive effect from the development of attracted capital.
The final stage in the process of studying the investment market is a qualitative analysis and an objective assessment of investment attractiveness for individual companies and firms considered as potential investment objects.
Such a range of assessments is carried out by the investor when determining the need and feasibility of making capital investments in the process of expansion and technical re-equipment at existing enterprises; choice to carry out the acquisition of alternative privatization objects; as well as when buying shares of individual companies. But every business entity must show its capabilities to attract external investment. Therefore, the assessment of investment attractiveness is analyzed in external and internal financial analysis.
Analysis of the assessment of investment attractiveness
Western scientists-economists have determined that in order to assess the investment attractiveness of an enterprise as an investment object, the most important and priority value is a complete analysis of the following vital aspects of its activities:
1. Analysis of asset turnover. The effectiveness of the beginning of investment is largely determined by the fact how quickly the invested funds have time to turn around in the course of the activity of a particular enterprise.
2.Analysis of the return on equity. One of the main goals at the moment of investment is the mandatory provision of high profits in the process of using the invested material resources. But in modern conditions, enterprises can largely manage profitability indicators (due to depreciation policy, efficiency of tax planning, etc.), and in the context of the analysis process, it is possible to sufficiently fully investigate the potential of its formation in comparison with the initially invested capital.
3. Analysis financial sustainability... This analysis makes it possible to assess the investment risk associated with the structural formation of investment resources, as well as to identify the optimal financing of current economic activities.
4. Analysis of asset liquidity. Assessing the liquidity of assets allows you to determine the ability of an enterprise to pay its short-term liabilities, to prevent the possibility of bankruptcy due to the rapid sale of certain types of assets. In other words, the condition of assets characterizes the level of existing investment risks within the short-term period. Moreover, the assessment of the investment attractiveness of the enterprise according to the indicated indicators is carried out taking into account the stages of its life cycle, since at different stages the values of the same indicators have different values for the enterprise and its investors.
Svetlana Belova
Sooner or later, all enterprises are faced with the question: "Shouldn't we look for investments on the side?" Suddenly it will be possible to get into their networks a kind, generous, ideologically close and generally attractive investor ... Timid voices protest, justifying their desire to maintain complete independence and their own pride, most relish the upcoming benefits:
1. "One capital is good, but two is better."
An increase in equity capital is also useful in the field of production:
To maintain the existing market share;
To ensure the development of the company's activities;
For the development and implementation of new projects.
and in the area of financing:
To replace the funding method current activities(lending is replaced by own funds);
In the presence of a high proportion of equity capital in the balance sheet, it is easier for an enterprise to attract resources in the form of loans from banks, loans from other partners, etc.
2. "What is the demand for that and the price."
I would like to keep up with others and support the price (or price fluctuations J) of our own shares at the level that we ourselves need:
To make a profit by trading their own shares, such an opportunity really exists for large issuers;
To preserve existing investors and their further "promotion";
To expand the circle of potential investors, including small investors;
To provide an opportunity for management or "their" investors to buy back the securities at the lowest price.
3. "Let us look for a prince, who would have voiced us and judged by right."
There is often a need for a strategic investor who would be able to establish management at the enterprise and restore its position in the market.
4. "St. Bartholomew's Night".
Sometimes the purpose of attracting investment is the redistribution of power in the company, achieved through additional emission, the bulk of which is acquired by an investor aimed at seizing power.
5. "Out of the fire and into the fire."
It also happens vice versa. In a period of instability and power struggle, timely attraction of investments can become a chance to maintain and strengthen control over the enterprise.
And in general, it is not for nothing that they say: "Do not postpone work until Saturday, but marry for old age."
Maiden beauty - long braid
So, having decided for one reason or another to search for investments, the company's management enters the capital market and discovers that the number of investors on it is clearly less than the number of fellow competitors. In addition, most of the interactions between investors and issuers are carried out through direct acquisition of a block of shares in an enterprise (moreover, not just a block of shares, but a controlling one). Venture financing and project investment, alas, are much less common.
Investment consumers are desperately competing among themselves for the most attractive sources of financing (“you can't spread your heart in front of everyone”). Note that there is also competition among investors, caused by their desire to finance companies with the lowest risk and the greatest profit for themselves, as a result of which all the “grooms” crowd around a couple of “brides”, ignoring the rest. The question involuntarily arises: "Is our company worse?"
In a developed economy, a natural indicator of a company's investment attractiveness is the market value of its shares. V Russian economy the market value depends on anything - on the expectations of brokers, on the dynamics of the overseas Dow Jones, on operations carried out by companies politically close to issuers, etc., but not always on the financial and production successes of the manufacturers themselves.
In recent years, the practice of assessing the investment attractiveness of Russian companies according to the following parameters has become established:
1. Development potential.
2. Financial condition.
4. Manageability.
5. Intangible assets.
6. Political and macroeconomic environment.
In addition to factors directly related to the activities of the enterprise, investors also evaluate the investment attractiveness of the company itself. valuable papers.
The conclusion suggests itself that before the bride-show it is necessary to carefully restore the beauty and choose the dowry correctly. Alexander the Great (according to Pavel Taranov's version) said: “How to become the most beloved? - To be the most powerful and at the same time fearless.
1. Development potential.
The most important parameter for making a decision to invest in a particular company is the presence of a clearly formulated and detailed development strategy. This factor is especially significant for enterprises with a long production cycle and low turnover of funds. When developing strategic plans, it is dangerous to go to extremes: to view the future with "hopeless optimism" or to allow imagination to triumph over reason.
Assessment of enterprise competitiveness and marketing situational analysis.
Development and promotion of the mission.
Development of a corporate strategy.
Marketing strategy development.
Development of functional strategies.
Building an optimal business model.
Development of a program for diversification and establishment of a new business.
2. Financial condition.
Investors pay perhaps the most attention to the financial position of the enterprise, although often the results obtained can have different meanings depending on the volume and duration of the investment. Wealthy brides are often capricious in family life and, as a rule, they have a horde of poor relatives.
Usually a standard assessment is done financial condition and analysis of the coefficients:
Liquidity;
Financial stability and creditworthiness;
Profitability and turnover;
The tension of the obligations of the enterprise.
However, even an excellent assessment of the financial condition serves only as a basis for the subsequent study of all other factors affecting the investment attractiveness.
Frequently encountered measures to improve the financial situation and the form of its presentation to the investor:
Development of a program to control the receipts and expenditures of funds (operational "pulling" the balance sheet).
Development of a debt restructuring program.
Implementation of international standards accounting.
Implementation of budget management and management accounting.
3. Production base and human resources.
The state of the production potential of an enterprise has a direct impact on its investment solvency, which, nevertheless, is rarely taken into account by investors.
It is quite easy to get a quantitative estimate of the amount of capital in monetary form for any enterprise. But there is another part that cannot be reliably expressed in monetary terms. This part of the production potential includes: the personnel component, the level of labor organization and the level of production organization. This part does not lend itself to strict quantitative assessment, however, without it, the production potential of the enterprise practically does not exist, since fixed assets and intangible assets cannot work by themselves.
To optimize the production base and increase the return on human resources, we can offer:
Optimization of logistics processes in the organization.
Reengineering or improvement of business processes in the organization http://www.ftk.ru/consulting/mailing/13.htm.
Development of an effective system of staff motivation and compensation (remuneration).
Setting up a personnel development system.
4. Manageability.
When analyzing a management system, investors, as a rule, carefully study the macro level of enterprise management - from the availability of strategic management to the quality of documentation development.
V recent times the conformity of enterprise management has acquired particular importance international standards... The quality management system ISO 9000 is adopted as a benchmark. This is due to the fact that in the 2000 version the quality management system is considered as equivalent to the overall manageability of the enterprise and the emphasis of certification has been significantly shifted from quality checks of semi-finished products and finished products to the quality of the formulation of enterprise management processes.
In addition, an important aspect for the investor is the reputation of the current owners in society and in the market. 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.
To improve the enterprise management system, it is useful to:
Evaluate the effectiveness and reorganize the functional divisions of the company.
Optimize the linear - functional control system.
Implement project management.
Select and implement a comprehensive integrated enterprise resource management system.
Implement a quality management system ISO 9000: 2000.
5. Increasing the role of intangible assets.
After the fact of the transition to a post-industrial society was ascertained, various methods of assessing intangible assets began to be actively added to the traditional methods of assessing enterprises. Potential investors, first of all, pay attention to the presence and popularity of the trademark and brands, pay great attention to the general image of the enterprise, welcome the presence of intellectual property and creative innovation groups. The mischievous adage “what is in my name for you, you appreciate the volume of your breasts” no longer works.
CONTENT
Introduction
The success, performance and long-term viability of any business depends on a continuous sequence of intelligent management decisions. Each of these decisions ultimately has economic implications for the operation of the enterprise. In essence, the process of managing any enterprise is a series of economic decisions.
One of the most important areas of activity of any company is investment operations, that is, operations associated with the investment of funds in the implementation of projects that will ensure that the company receives benefits over a sufficiently long period of time.
A correct assessment of the attractiveness of an enterprise enables the enterprise to receive stable income and make informed decisions.
The purpose of the course work: consideration of methods for assessing the attractiveness of an enterprise.
Coursework objectives:
- consider the concept of the attractiveness of the enterprise;
consider the factors affecting the attractiveness of the enterprise;
consider methods for assessing the attractiveness of an enterprise.
1. The essence and concept of the attractiveness of the enterprise
Investment activity - investment of funds (investment) and the implementation of practical actions in order to generate income or achieve another useful effect - to one degree or another is inherent in any enterprise.
With a large selection of investment types, 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 solution, the concept of an enterprise's attractiveness is used.
Most often, the term “attractiveness” is used to assess the feasibility of investing in a particular object, choosing alternative options and determining the efficiency of resource allocation, ie. the attractiveness of an enterprise is the expediency of investing temporarily free funds in it.
Thus, attractiveness is characterized by the state of the enterprise, its further development, profitability and growth prospects.
The main source of information for determining the attractiveness of an enterprise is its accounting (financial) statements for the last two calendar years and the last reporting period.
The attractiveness of the enterprise includes:
- general characteristics technical base enterprises - the nature of the technology; availability of modern equipment, storage facilities, own transport; geographical location, proximity to transport communications.
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.
The range of products that are manufactured.
Production capacity - the maximum possible output per unit of time. Production capacity characterizes the work of fixed assets in such conditions under which the potentialities inherent in the means of labor can be fully used.
The place of the enterprise in the industry, in the market, the level of its monopoly.
Description of the management system (organizational structure of the enterprise). Large enterprises specializing in the production of complex, labor-intensive types of products, as a rule, consist of dozens of workshops, laboratories, and departments. To coordinate their activities, a hierarchical management structure is created.
- Linear - the most simplified system, providing for one-man management
Linear headquarters - used at medium-sized enterprises, as well as at large - in the management of workshops and departments
Functional - the head of the enterprise transfers part of his powers to functional deputies or heads of functional departments
Matrix - consists in the fact that the enterprise appoints a person responsible, for example, for the development of the production of a new product, to whom the powers of the director for organizing the development of the product are transferred.
Mixed is a simple combination of the above four forms (at the lower level - at the brigade level - there is a linear one, on the average - at the level of a shop or department - a line-staff form, at the highest level - at the enterprise level - a functional and partially matrix form of management), but more often there is a synthesis of various forms acting together at all levels of the economic hierarchy.
Statutory fund, owners of the enterprise. The authorized fund represents the amount of contributions of the founders of an economic entity to ensure its life. The amount of the authorized capital corresponds to the amount fixed in the constituent documents and is unchanged.
Production cost structure. Production costs are the totality of the costs of material resources and the necessary labor, which show how much it costs to manufacture products at a given enterprise. The amount of these costs determines the monetary value of the costs associated with the use of raw materials, fuel, energy, etc.
- Profit volume and directions of its use. Profit (loss) is the ultimate financial results management of the enterprise and is defined as the difference between the proceeds from the sale of products (works, services) without value added tax and excise taxes and costs of production and sales included in the cost of products (works, services).
In the conditions of market relations, an enterprise should strive, if not to obtain maximum profit, then at least such a volume of profit that would allow the enterprise not only to firmly hold its positions in the sales market for its goods and services, but also to ensure the dynamic development of its production in conditions of competition. This requires knowledge of the sources of profit formation and methods for their best use.
In the conditions of market relations, as world practice shows, there are three main sources of profit:
- making a profit due to the monopoly position of the enterprise for the production of a particular product or the uniqueness of the product
the second source is directly related to production and business activities
the third source is related to innovative activities enterprises
Assessment of the financial condition of the enterprise.
2. Factors affecting the attractiveness of the enterprise
The attractiveness of an enterprise depends on many factors, among which the following can be noted: financial position, risk, efficiency of production development, dividend policy, information on activities, etc.
All factors affecting the attractiveness of an enterprise can be divided into two groups: external and internal. They form the systems of external and internal risks of the investment project, which are of particular importance for solving this problem.
The main factors to consider when assessing the attractiveness of an enterprise:
Industry affiliation.
It is well known that the competitiveness of products on the market depends to a large extent on the reputation of the relevant industry, country in the world market. In competition with an enterprise in an industry that is successfully operating in 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 the this industry... Something similar is happening with enterprises in the country that are part of the industry, whose products do not enjoy a high reputation. It is unlikely that the market will react positively to a new product from a previously unknown enterprise, even if it is of high quality. It will take many years for this fact to be recognized.
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. An important aspect is also the reputation of the owners in society and in the market. Negative information can have a bad effect on the success of a project.
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. More often it is customary 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 the transition to a production form, becoming a structure of production potential. Thus, capital turns into fixed assets, working capital and intangible assets. You can get a quantitative estimate of the amount of capital in monetary form, contained in the above components of the production potential for any enterprise. But there is another part that cannot be reliably expressed in monetary terms. This part of the production potential includes: the personnel component, the level of labor organization and the level of production organization. But this part does not lend itself to strict quantitative assessment. Without it, the production potential of the enterprise practically does not exist, since fixed assets and intangible assets cannot work by themselves.
Enterprise management. In the analysis of management, the macro-level of enterprise management is studied from the quality of the development of documents related to management and the presence of strategic management, to how perfect the enterprise tax planning system is.
Location. In Russian conditions, this factor can play a decisive role in the attractiveness of the enterprise. Today, in almost every region of the country, you can find an enterprise and often they are city-forming, which is not possible to bring to a competitive state, and, therefore, recoup the investments made in them. This is an investment dead end - a dead zone for commercial investment projects.
Relations with the authorities. The investor needs to find out what kind of relationship has developed with the local government. Whether the government will contribute to the success of the project or erect obstacles to its implementation.
Investment program. The lender and the investor need to familiarize themselves with the documents not only for the loaned or financed investment project, 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, it should be carried out in each specific situation taking into account the actual conditions and interests of the parties - participants in the investment project. An objective assessment of all real risks is required.
3. Methods for assessing the attractiveness of an enterprise
Based on world practice, an assessment of the attractiveness of an enterprise is carried out when the necessary data are available, such as:
1) cash flow
2) balance sheets
3) profit and loss statement
For European and Russian firms, the main investment indicator is the payback period and return on assets. Everything is different with Japanese companies, where the dominant role belongs to the strategic assessment of the market position. To assess the investment activity of the United States, two indicators are usually used: investment efficiency and residual income.
As for the stages that are used in the process of making investment decisions, then at this moment there are three main ones:
1) the size of investments and determination of sources of financing
2) assessment of the alleged 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
1. Perhaps the most important stage in assessing the attractiveness is the analysis of the financial and economic activities of the enterprise. With its help, the attractiveness and prospects of this enterprise are assessed from the point of view of the possibility of mobilizing available sources.
The financial condition of an enterprise is a concept and its characteristics, which are based on an assessment of the effectiveness of the placement of funds, the availability of the necessary financial base, the organization of settlements and the sustainability of solvency. As you know, financial reporting data serve as a source of information to characterize the financial condition, these data are assessed for a clearly defined period.
Various methods are very widespread, created to assess the financial position of an enterprise, which are based on an analysis of the system. financial ratios... With all their diversity, they should include indicators of the following areas for assessing the financial condition of the enterprise:
- liquidity indicators
financial soundness indicators
indicators business activity
profitability indicators
The unsatisfactory state of the liquidity of the enterprise will be indicated by the fact that the enterprise's need for funds exceeds their real income. To determine whether an enterprise has enough money to pay off its obligations, it is necessary, first of all, to analyze the process of receipts from economic activities and the formation of the balance of funds after paying off obligations to the budget and off-budget funds, as well as the payment of dividends. Analysis of liquidity also requires a thorough analysis of the structure of the accounts payable of the enterprise. It is necessary to determine whether it is "persistent" (for example, a debt to a supplier with whom there is a long-term relationship) or overdue, ie. one whose maturity has passed.
Liquidity analysis is carried out on the basis of comparing the volume of current liabilities with the availability of liquid funds. The results are calculated as liquidity ratios based on data from the respective financial statements. The main ones are the ratios of current, quick and absolute liquidity. The denominator in all the given indicators is the same, i.e. urgent urgent obligations.
- Coefficient current liquidity(coverage ratio) shows how many units of the company's current assets fall on one unit of current liabilities. This indicator is of particular importance for the assessment of the enterprise by buyers and investors. The standard value of the coverage ratio is 1.
current liabilities are accounts payable and short-term loans and borrowings
- The instant (quick) liquidity ratio determines that part of the liabilities that can be repaid not only at the expense of funds, but also at the expense of expected receipts for shipped products (work performed, services provided). The normative value of this indicator is 0.6 - 0.8.
- The absolute (full) liquidity ratio shows what part of current liabilities can be repaid by assets that have absolute liquidity. Standard value: 1? K AL? 2.
- The ratio of short-term receivables and payables characterizes the company's ability to settle accounts with creditors at the expense of debtors within 1 year. The recommended value is 1.
- the level of coverage of working capital (stocks) by stable sources of financing
solvency of the enterprise
share of own or stable sources in total funding sources
where, A1 - the most liquid assets: cash and short-term financial investments
A2 - quickly realizable assets: accounts receivable and other current assets
P1 - most urgent liabilities: 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 to which stocks and costs are covered by the sources of their formation. To characterize the degree of financial stability, a three-component vector of financial stability can be used:
If the value of the coordinate is positive, then it is assigned the value 1, if negative - 0.
Analysis of financial stability by the criterion of the degree of coverage of stocks 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.
Business activity analysis the enterprise allows you to assess the efficiency of the main activity of the enterprise, which is characterized by the rate of turnover of the financial resources of the enterprise.
The following indicators are used to analyze business activity:
Turnover ratio current assets determines how much revenue falls on a unit of working capital or the number of revolutions per year:
The stock turnover ratio characterizes the number of turnovers of funds invested in stocks:
The receivables turnover ratio shows how many times the revenue exceeds the receivables:
At this stage, the period of the turnover of circulating assets (in days) is also calculated, which characterizes the time from spending funds for the production of goods to receiving money for its implementation:
where, N is the time period for which the analysis is carried out (in days)
An increase in the turnover of circulating assets and a reduction in the period of their turnover indicates an increase in the efficiency of using circulating assets.
Profitability - This 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 product sales
- the average annual value of assets (balance sheet currency)
Return on assets shows the amount of net profit that falls on a unit of assets, the standard value is more than 0.
1. Regulation of the return on equity is reduced to the impact on the profitability of products and asset turnover. If it is impossible to increase the profitability of products, then by increasing the turnover of attracted resources, the profitability of capital is increased.
2. In the conditions of economic downturns typical for our country, it is very important to focus on enterprises that remain profitable in any difficult economic situation. Such information can be obtained on the basis of the dynamics of the company's profit for a certain number of previous periods according to the data of the profit and loss statements.
3. Based on the data of the same report, the ratios of the coefficients of increase in proceeds from the sale of goods, services and the total value of assets are determined. If we observe that the growth rates of revenue are greater than the growth rates of assets, then we can safely declare an increase in the efficiency of using the resources of the enterprise. If, on the contrary, the value of assets increased faster than the proceeds from sales, then the conclusion is as follows: the efficiency of using resources fell.
4. The presence or absence of the enterprise's own circulating assets is extremely important. The amount of these funds is defined as the difference between working capital and short-term liabilities. Having its own working capital is the most important indicator of the financial strength of an enterprise and reliability for partners.
5. Analysis of the range of products produced is of undoubted interest for investors. This analysis is considered from the point of view of the interaction of fixed and variable costs in the system of its cost. Businesses that have a very high level of fixed costs in their total production are highly susceptible to the slightest change in sales.
Fixed costs are those costs, the amount of which does not change when the volume of production changes. These include, for example: rent for premises, executive salaries, etc.
In the event that the volume of sales of goods falls, fixed costs will remain the same, and as a result, profits will fall even more than revenue. Variable costs change in the same way as production volume. Thus, it can be concluded that the business risk in enterprises where there are more fixed costs is much higher than where variable costs prevail.
6. In the reports of the enterprise, special attention should be paid to the presence of losses, loans and credits not repaid on time, and necessarily overdue receivables and payables.
Formation on these principles of information and analytical support for assessing the attractiveness of the enterprise will help reduce risk and increase the efficiency of investment and financial decisions.
In the course of assessing the attractiveness of an enterprise, the efficiency of investments is assessed.
Return on investment is determined using a system of methods that reflect the ratio of investment-related costs and benefits. The methods make it possible to judge the economic attractiveness of investment projects and the economic advantages of one entity over another.
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).
Rice. 1. Classification of methods of investment analysis
The most important of the static methods is the “payback period”, which shows the liquidity of a given project. The disadvantage of static methods is that they do not take into account the time factor.
Dynamic methods that take into account the time factor reflect the most modern approaches to assessing the effectiveness of investments and prevail in the practice of large and medium-sized enterprises in developed countries. In the economic practice of Russia, the use of these methods is also due to the high level of inflation.
Dynamic methods are often called discount methods, since they are based on determining the current value (i.e., discounting) cash flows associated with the implementation of an investment project.
In doing so, the following assumptions are made:
- cash flows at the end (beginning) of each project period are known
the estimate was determined, expressed in the form of an interest rate (discount rate), in accordance with which funds can be invested in this project. As such an estimate are usually used: the average or marginal cost of capital for the enterprise; interest rates on long-term loans; required rate of return on invested funds, etc. Inflation and risk are significant factors influencing the value of the assessment.
Investors in the market are different: international, foreign, domestic, intracorporate. And the level of investment also differs in scale and focus. Let's imagine the image of a professional direct investor, for example, a foreign one. The investor has assets and intends to invest them profitably. He carefully examined investment climate of our country, regions and industries in which he has a certain experience of management and success. Finally, the direct investor sees in front of him a list of companies that interested him. In other words, the investment attractiveness of the company. How to perceive, evaluate and use it? We will devote this article to these questions.
Relationship between life cycle stages and company attractiveness
The investment attractiveness of an enterprise is indeed an important step in the activities of professional investors interested in effective investments. The attractiveness of a company as an investment object is the result of a complex of diagnostic and evaluation activities carried out after the selection of companies to the long list of industry interests of analysts. Each investor asks the question of what criteria of investment attractiveness he should apply in order not to be mistaken with the choice of an object. And first of all, you should pay attention to the current stage of the company's life cycle as a diagnostic criterion.
A well-known authority on the theory of the life cycle (LC) of a corporation, Dr. Yitzhak Calderon Adizes, in the life cycle observes two large phases: growth and aging. We are in to a greater extent stages of interest are courtship-birth, infancy-childhood, adolescence, early flowering, and late flowering in the growth phase. Aging stages "decline", "aristocracy", etc. interest to a much lesser extent, since investment in this phase is already less attractive, unless the stages of "decline" or "aristocracy" precede the beginning of a new more powerful cycle with the accompanying organizational and technological re-equipment of the business.
Life cycle stages according to I.K. Adizes
Subject for reflection possible investments can be any of the growth stages, but the Come-Come, Youth, and Prime stages are still preferred. The stage "Infancy" is a very risky investment, since it is not yet clear how events will develop. At the stage of stabilization, the investor must make sure that the enterprise will ensure high rates of production and sales of products while maintaining high margins of the main group of products and services.
How do you determine the current stage of a company's life cycle? There are various techniques for this. First of all, it is necessary to collect the performance indicators of the enterprise, preferably for the last five years with a quarterly breakdown and analyze their dynamics according to the following analytical sections:
- the volume of product sales;
- balance asset currency;
- the size of the company's equity capital;
- the size of EBIT, EBITDA, net retained earnings.
Assessment of business attractiveness by SOFIA and life cycle stages
The analysis of the investment attractiveness of an organization based on the life cycle factor, it is advisable to start with a financial analytical study using the SOFIA method. The method involves the study of the ways of making the main financial decisions in the company. Assessment of strategic decision making (or “S” type decisions) includes activities that simultaneously represent methods for assessing investment attractiveness. They include the following analytic snapshots.
- Economic value added EVA. If the EVA value systematically demonstrates positive dynamics, it means that market price enterprises grows over book value net assets... Consequently, the investment attractiveness of the company is high.
- The market value of the company, determined using one of the available methods. The investor prefers the income method (from the point of view of the possible sale of the business) and the valuation by analogy.
- BCG sustainable growth (development) models. This method assumes the analysis of the correspondence between the identities of the growth rates and growth of revenue, profit, assets, equity capital and debts of the enterprise. The most pronounced and synchronous dynamics of indicators is characteristic of the stages "Youth" and "Early flowering", which makes them especially attractive for investments.
- Financial strategic models matrices. The chosen financial strategy of the company serves as an indirect indicator to the investor on the formed trend, how successfully the direction has been chosen in the two-factor matrix of results of economic and financial activities... The zone of success means the direction towards the creation of liquid funds, and the zone of deficits means their consumption.
- Dupont model. This analytical model is over a hundred years old. Distinguish between two-factor and three-factor Du Pont models. They are based on a detailed analysis of the company's return on assets.
The factors of investment attractiveness are present not only in the chosen financial strategy of the company. The current system of operational financial planning (decisions of the "O" type) is of no small importance. The area of regular management in the field of finance is equally important for an investor who thinks about a business for investment. We understand it as a system of budgetary management and a system of rationing.
Assessment of the investment attractiveness of an enterprise is based on the analysis of a set of existing policies in the field of accounting, cost management, working capital and accounts receivable (type “F” solutions), and the company's investment policy (type “I” solutions). The actual level of development of analytical technologies in the financial sector also serves as a certain “beacon” of investment security (type “A” solutions).
Established architecture financial management a company using the SOFIA methodology allows you to determine the life cycle stage and obtain complete information on the profitability and prospects of investments. In addition to financial aspect To understand the moment of development of the company, it is also useful to diagnose organizational behavior at the enterprise. The relationship between the types of management practices and the stages of the life cycle is presented below in tabular form.
Diagnostics of the life cycle stage through the types of management practices in the company
Focused financial analysis to assess attractiveness
The investment attractiveness of a business object is assessed in the course of several iterations from different points of view. It is necessary to understand on both sides of the negotiation evaluation process that only a certain openness, subject to the conditions of information security, can lead to mutual success in raising funds. The investor must prove to the owners and management of the company that, acting in their own business interests, does not pose a competitive threat. The company investor must realize that the key aspects of the results of operations and the management system will need to be discovered.
Indicators of profitability, liquidity, financial stability, asset turnover serve as the basis for a focused analysis of an enterprise as a potential investment object. Based on these indicators, the investment attractiveness of the enterprise is assessed from the standpoint of investment opportunities for investments in fixed assets or portfolio investments. Further, the composition of the indicators used in the analysis is presented, summarized in three groups.
Summary table of indicators for analyzing investment attractiveness
An analysis of the investment attractiveness of an enterprise can be carried out by comparing the calculated values with the standard (normative) level of the indicator on average in the industry, with the level of the previous reporting periods of the given company and with the found values of the leading in the industry and on the territory of competing players. The analysis will require the results of competitive intelligence, information from the central and regional branches of Rosstat (based on industry averages) and reporting forms of past periods for the enterprise.
The investment attractiveness of the enterprise according to the first group of indicators allows the investment analyst to determine the potential of the investor's protection from the requirements of external obligations, thanks to the resources of his own funds. The second group shows the company's ability to cover short liabilities due to its short and liquid asset base. At the same time, the overall coverage ratio is optimal within the value of the indicator 2-2.5, and the intermediate coefficient is at the level of 0.8.
The most liquid part of assets is cash. Given this circumstance, the absolute liquidity ratio is of particular importance for both investors and suppliers. The most favorable option is considered when this indicator exceeds 0.5, and its optimal value is 0.25. Different kinds profitability serve as a separate analytical unit for assessing the attractiveness of a company. Guideline values vary greatly by industry, depend on seasonality and, as already noted, on the life cycle stage.
Influence of the level of management on the degree of investment attractiveness
Quite often, a potential investor is interested not only in the level of the company as a whole. Investment analysts may also be interested in the investment attractiveness of the project as a local one. investment challenge... The previous sections emphasized the financial analysis as a key tool in the selection of objects for capital investments. This is really the most effective way to solve the search and selection problem. The figures, provided they are open and reliable, provide direct access to the forecast of investment success.
At the same time, financial analytics must necessarily be confirmed by indirect methods and methods, without which the assessment of the investment attractiveness of an enterprise and local projects is not entirely complete. In addition to the above diagnostics of organizational behavior in the company, it is advisable to clarify the type of current organizational culture. It, to one degree or another, testifies to the life cycle stage and the level of management development in the company, reflects the current management paradigm.
The reliability and competitiveness of the company as an investment object is confirmed by the level of development of management systems based on quality management. ISO standards of various series, starting from 9000, are considered in many countries as one of the most effective indirect assessment tools. The very fact of certification according to quality standards increases the attractiveness of the company in terms of investment opportunities due to:
- a transparent and prescribed model of regulated business processes in the company, which gives the investor support in the subsequent control of procedural well-being;
- introducing electronic forms documentation support of management;
- getting access to international markets based on clear and generally accepted procedures and standards;
- understandable language and format of intracorporate communications, plans and reports accepted by both company employees and investor representatives;
- production costs, which receive an optimization perspective together with process optimization procedures through functional cost analysis and reengineering of business processes.
As a summary
There are at least two parties involved in the investment process. One party that gives money for capital investments is called an investor and expects a corresponding return. The second party initiates investment project, needs to be supported by means if own capital not enough. She is called the initiator of attracting an investor. Not only must both parties find each other in some way, but mutual choice is highly desirable in a win-win disposition. Unfortunately, the national fun of Russian business is performing rituals that lead to losses.
I understand investors, why there are so few of them, and why the cost is inflated investment funds for companies. The reason for this lies not only in the fact that the business is really unprofitable and ineffective. In fact, there are not so few successful companies in the economy. It's all about three important aspects.
- Initially, the companies-initiators do not want, and only then they “do not know how” to be transparent to potential investors.
- Regulatory governance is often truly shell, imitation and formal, including TQM and ISO certifications.
- Investors need to learn to convince, analyze and evaluate the investment potential of truly attractive businesses.
Sometimes it seems that the investment attractiveness of an enterprise, as well as the composition of the true values of the fundamental indicators of its activities, are hidden not only from the eyes of investors, but also from the business owners themselves. It is high time that double standards in the economy were put in place. The most interesting thing is that monopolies and oligopolies as subjects also suffer from the fact that medium and small businesses are shackled by the dregs of tax maneuvering. This is as much a matter of state sovereignty as national security. For some reason, it is believed that the breaking of the foundation will take place, and the quality and volume of investments in the real sector will acquire new strength.
