Analysis of the investment attractiveness of an enterprise is a process of studying economic information in order to:

an objective assessment of the achieved level of investment attractiveness and stability of the financial condition of the enterprise, assessment of changes in these levels in comparison with the previous period, business plan and standard values ​​under the influence of various factors;

adoption by investors of reasonable management decisions on financing investment projects based on the established restrictions;

improving the financial condition of the enterprise, increasing its financial stability and investment attractiveness.

The tool for developing management decisions aimed at improving the investment attractiveness and financial condition of the enterprise is the economic analysis Kolmykova T. S. Investment analysis: tutorial- M.: Infra-M, 2010 p. 159-160. .

Economic analysis consists of the following indicators:

1. Assessment of the property status of the enterprise.

The balance sheet asset contains information about the placement of capital at the disposal of the enterprise. The results of production and financial activities, and hence the financial condition of the enterprise, largely depend on what funds are invested in fixed and working capital, how much of them are in the sphere of production and the sphere of circulation, in monetary and material form. Therefore, in the process of analyzing the assets of an enterprise, first of all, it is necessary to study changes in their composition, structure and evaluate them.

If the assets of the balance reflect the funds of the enterprise, then the liabilities - the sources of their formation. The financial condition of the enterprise largely depends on what funds it has at its disposal and where they are invested.

2. Assessment of the financial stability of the enterprise.

The coefficient of maneuverability.

It shows how much of the equity capital is in a mobile form, allowing for relatively free maneuvering of capital.

equity;

permanent assets;

own working capital.

· Equity ratio.

Based on this ratio, the balance sheet structure is recognized as satisfactory (unsatisfactory), and the organization itself is recognized as solvent (insolvent).

SC - equity;

PA - permanent assets;

TA - current assets.

Ratio of stocks availability with own sources

Shows the sufficiency of own working capital to cover stocks, work in progress costs and advances to suppliers.

SC - equity;

PA - permanent assets;

Zap - stocks of raw materials and materials, work in progress and advances to suppliers.

· Coefficient of autonomy (concentration of own capital).

It characterizes the share of the owners of the enterprise in the total amount of funds advanced in its activities.

SC - equity;

VB - balance currency.

· Ratio of own and borrowed funds.

This ratio gives the most general assessment of financial stability

SC - equity;

ZK - borrowed capital.

Long-term investment security ratio

Determines what proportion of invested capital is immobilized in fixed assets.

SC - equity;

PA - permanent assets;

TO - long-term liabilities.

· Coefficient of immobilization.

The indicator characterizes the ratio of permanent and current assets.

PA - permanent assets;

TA - current assets.

· E. Altman's bankruptcy probability index (Z-score).

TA - current assets;

VB - balance currency;

DC - additional capital;

PE - net profit;

UK - registered capital;

VR - proceeds from sales.

As a result of calculating the Z - indicator for a particular enterprise, a conclusion is made:

• § if Z
• § if 2.77
• § if 2.99
• § if Z
• 3. Assessment of liquidity and solvency.
• · Absolute liquidity ratio.

DS - Cash,

KP - short-term liabilities

This ratio shows how much of short-term borrowings can be repaid immediately if necessary.

· Quick liquidity ratio

Shows what part of the current debt the organization can cover in the short term, subject to full repayment of receivables.

OA - current assets,

Z - stocks,

KP - short-term liabilities

· Current liquidity ratio

Shows the payment capacity of the organization, subject to the repayment of short-term receivables and the sale of existing stocks.

OA - current assets.

KDO - short-term debt.

· Solvency recovery ratio

It is defined as the ratio of the estimated current liquidity ratio to its set value. The estimated current liquidity ratio is determined as the sum of the actual value of this ratio at the end of the reporting period and the change in this ratio between the end and the beginning of the reporting period in terms of the solvency recovery period (6 months).

Ктл.к - the actual value (at the end of the reporting period) of the current liquidity ratio,

T - reporting period, months,

• 6 - normative period of restoration of solvency in months.
• · Loss of solvency ratio

It is defined as the ratio of the estimated current liquidity ratio to its set value. The estimated current liquidity ratio is determined as the sum of the actual value of this ratio at the end of the reporting period and the change in this ratio between the end and the beginning of the reporting period in terms of the period of insolvency (3 months).

The calculation formula is as follows:

Ktl.k - actual value(at the end of the reporting period) current liquidity ratio,

Ktl.n - the value of the current liquidity ratio at the beginning of the reporting period,

T - reporting period, months,

• 2 - the normative value of the current liquidity ratio,
• 3 - normative period of restoration of solvency in months.

When analyzing the liquidity of the balance sheet, a comparison is made of assets, grouped by their degree of liquidity, with liabilities for liabilities, grouped by their maturity.

For analysis, the assets and liabilities of the balance sheet are grouped according to the following criteria:

by the degree of decreasing liquidity (asset);

according to the degree of urgency of payment (repayment) (passive).

Assets, depending on the rate of conversion into cash (liquidity), are divided into the following groups:

• · A1 - the most liquid assets - the company's cash and short-term financial investments;
• · A2 - quickly realizable assets - accounts receivable and other assets;
• A3 - slow-moving assets - stocks
• A4 - hard-to-sell assets - the result of section I of the asset balance

Liabilities are grouped according to the degree of urgency of their return:

• · P1 - the most urgent liabilities - accounts payable, other liabilities, as well as loans not repaid on time;
• · P2 - short-term liabilities - short-term loans and borrowings;
• · P3 - long-term liabilities - long-term loans and borrowings;
• · P4 - permanent liabilities - the result of section IV of the liabilities side of the balance sheet.

When determining the liquidity of the balance sheet, asset and liability groups are compared with each other.

Absolute balance liquidity conditions:

• A1>P1;
• A2>P2;
• A3>P3;
• A4>P4.

A necessary condition for the absolute liquidity of the balance sheet is the fulfillment of the first three inequalities. The fourth inequality is of the so-called balancing nature: its fulfillment indicates that the enterprise has its own working capital.

4. Assessment of business activity

Analysis of business activity allows you to characterize the results and efficiency of the current main production activities.

· Coefficient of sustainability of economic growth:

Net profit (profit available for distribution among shareholders);

D - dividends paid to shareholders;

E - equity.

· Asset turnover

This indicator characterizes the efficiency of the enterprise's use of all available resources, regardless of the sources of their formation, i.e. shows how many times during the analyzed period a full cycle of production and circulation is completed.

ВР - proceeds from sales for the billing period;

Anp, Akp - the value of assets at the beginning and end of the period.

· Turnover of own funds

This ratio is calculated as the ratio of sales proceeds to the average value of equity capital for the period.

SC mon and SC kp - the value of own funds at the beginning and end of the period.

Turnover of current assets

TA n p and TA k p - the value of current assets at the beginning and end of the period.

· Inventory turnover.

This ratio is calculated as the ratio of the cost of production to the average value of stocks, work in progress and finished goods in stock for the period.

Z n p and Z k p - the value of the balance of stocks, work in progress and finished products in stock at the beginning and end of the period.

· Inventory circulation time (in days).

where: investment resource profit management

About z - inventory turnover.

· Accounts receivable turnover

DZnp, DZkp - receivables at the beginning and end of the period.

VR - proceeds from sales.

・Receivables turnover period

Tper - duration of the period in days;

About dz - turnover of receivables.

Turnover accounts payable

C - the cost of products manufactured in the billing period;

KZ n p and KZ k p - accounts payable at the beginning and end of the period.

· Accounts payable turnover period

Tper - duration of the period in days;

About kz - turnover of accounts payable.

· Production cycle

the period of turnover of stocks of raw materials (in days),

period of turnover of work in progress (in days),

P ogp - the period of turnover of finished products (in days).

financial cycle

C pr - production cycle;

P odz - the period of turnover of receivables;

P okz - The period of turnover of accounts payable;

P oa - advances turnover period.

5. Assessment of the profitability of the enterprise.

Profitability analysis allows you to assess the ability of an enterprise to generate income for the capital invested in it (enterprise).

Return on total capital (total assets)

Indicates whether the company has a basis for providing a high return on equity.

PE - net profit;

VB ng and VB kg - balance sheet currency at the end and at the beginning of the year.

Return on equity

It characterizes the effectiveness of the use of equity capital.

PE - net profit;

SK ng and SK kg - the value of own funds at the beginning and at the end of the year.

Profitability of the main activity

PR - profit from sales;

C / C - cost of goods sold.

· Profitability of sales

PE - net profit;

VR - proceeds from sales.

There are no uniform regulatory criteria for the above investment attractiveness indicators, since they depend on many factors of the enterprise's industry affiliation, lending principles, the current structure of sources of funds, working capital turnover, the enterprise's reputation, etc.

Most often, investment attractiveness is assessed using one of two assessment methods: rating and integral.

• · The first is to analyze the restrictions imposed by the investor, with the aim of "screening" enterprises and forming a "narrow list" of candidates that meet the initial requirements and apply for funds to finance their investment program.
• · the second one assumes a rating assessment of enterprises from the "narrow list" - ranking according to the degree of decrease in the investment attractiveness of enterprises included in it.

Constraint analysis is carried out in the context of the choice "corresponds - does not correspond". If enterprises comply with the given restrictions, they are included in the "narrow list", if they do not, they are excluded from further consideration.

For the analysis of investment attractiveness, the following main restrictions are imposed on:

• absolute return on investment at a given percentage;
• · to raise funds;
• Minimum return on investment.

The rating assessment is based on the derivation of a certain complex indicator, which is calculated as the sum of weighted representative coefficients that characterize various aspects of the performance and financial stability of the enterprise.

When compiling the rating, two groups of financial indicators are analyzed that characterize the investment attractiveness of enterprises. The first of them combines five indicators that characterize the efficiency of enterprises, namely the possibility of making a profit. The second group includes five financial indicators that characterize the solvency of enterprises or, in other words, indirectly assess the probability of returning the funds invested by investors. The indicators used in the analysis are calculated based on the data financial statements at the end of the year.

Indicators characterizing the efficiency of the enterprise:

1. Profitability of sales.

It is calculated as the ratio of net profit to sales revenue. Profitability of sales shows how much profit the company has from each ruble of sold products.

2. Return on assets.

It is calculated as the ratio of net profit to the average annual value of assets. The return on assets shows how much monetary units profit received by the enterprise from a unit of asset value, regardless of the sources of raising funds.

Thus, the return on assets makes it possible to assess the efficiency of the use of assets and their profitability, and therefore, affects the investment attractiveness of the enterprise.

3. Profitability of working capital.

It is defined as the ratio of net profit to the average value of working capital.

4. Return on equity.

This indicator is defined as the ratio of the net profit of the enterprise to the amount of equity capital. Capital investors (shareholders) invest their funds in an enterprise in order to obtain a return on investment, therefore, from the point of view of shareholders, the best assessment of the results of economic activity is a return on invested capital, namely the return on equity.

5. Share of depreciation of fixed assets (depreciation factor).

This indicator is defined as the ratio of the amount of depreciation to the average annual value of fixed assets. This indicator indicates the technical condition of fixed assets of the enterprise.

Indicators characterizing the solvency of the enterprise:

• 1. Current liquidity ratio. Shows what part of current liabilities the company will be able to repay by mobilizing all working capital. This financial ratio is calculated as the ratio of current assets to short-term liabilities.
• 2. Quick liquidity ratio. When calculating the quick liquidity ratio, cash, short-term financial investments and receivables are compared with short-term debt.
• 3. Absolute liquidity ratio. Shows what part of short-term liabilities the company will be able to repay in the near future at the expense of funds in various accounts and in short-term securities.
• 4. This financial ratio is calculated as the ratio of the most liquid assets to short-term liabilities. It characterizes the amount of money required to pay current liabilities.
• 5. The coefficient of security of current assets with own working capital. Shows what part of the working capital of the enterprise was formed at the expense of equity capital.
• 6. Coefficient of autonomy. Shows the share of own funds in the total amount of funding sources. This financial ratio allows assessing the dependence of the enterprise on external sources of financing, i.e. the possibility of carrying out activities without additional attraction of borrowed capital

On the basis of expert research, a scoring of the parameters included in the rating assessment of investment attractiveness was developed. At the same time, the value of the primary parameter was estimated (for a certain year), then the resulting score was adjusted taking into account the dynamics.

Scoring parameters Table 3.

Indicators / Assessment		Satisfactorily	In the region of the maximum permissible value	unsatisfactory	Extremely unsatisfactory
Return on sales, %
Return on assets, %
Return on equity
Depreciation rate of fixed assets
Return on working capital, %
Current liquidity
Quick liquidity
Absolute liquidity
Working capital ratio, %
Autonomy coefficient, %

Primary parameters:

"good" - 2 points;

"satisfactory" - 1 point;

"in the region of the maximum permissible value" - 0;

"unsatisfactory" - minus 1 point;

"extremely unsatisfactory" - minus 2 points.

* Correction for dynamics:

"extremely positive" (more than +50%) - plus 20%;

"positive" (from + 10% to 50%) - plus 10%;

"stable" (from -10% to + 10%) - 0;

"negative" (from -50% to -10%) -- minus 10%;

"extremely negative" (less than -50%) -- minus 20%.

Experts believe that the main assessment indicators that meet the requirements of the international memorandum IASC (International Accounting Standards Commitec) are:

• · indicators of assessment of the property condition of the object of investment;
• · indicators for assessing the financial stability (solvency) of the investment object;
• · indicators for assessing the liquidity of the assets of the investment object;
• · indicators for assessing the profitability of the investment object;
• · indicators of assessment of business activity of the investment object;
• · indicators of evaluation of the market activity of the investment object.

An integral assessment allows you to determine in one indicator many factors that are different in content, units of change, weight and other characteristics. Indicators for assessing the property condition of the enterprise:

1. .Indicator characterizing the share of the active part of fixed assets:

2. Depreciation rate of fixed assets

This indicator characterizes the share of fixed assets written off as expenses in previous periods.

3. Refresh rate

This indicator shows what proportion of fixed assets was updated during the study period.

4. Dropout rate

The retirement rate shows which part of the fixed assets, with which the company began operations in the reporting period, retired due to dilapidation or for other reasons.

• 2. Indicators for assessing the financial stability and solvency of the investment object:
• 1. Indicator of own working capital:

F 21 Average annual cost of equity - fixed assets and investments - Stocks and costs.

2. Indicator of own long-term and medium-term borrowed sources of reserves and expenses:

F 22 = F 21 + Long-term and short-term credits and loans.

3. The sum of the main sources of formation of reserves and expenses:

F 23 \u003d F 22 + Stocks and costs + Short term loans and loans outstanding.

4. The amount of own working capital:

F 24 \u003d Own capital - Non-current assets.

The presence of an enterprise's own working capital means not only its ability to pay its own current debts, but also the availability of opportunities for expanding activities and investing.

5. The flexibility of own working capital characterizes the share of stocks in its total amount:

6. The coefficient of independence, which characterizes the ability to fulfill their external obligations through the use of only their own:

7. The financing ratio gives an overall assessment of the financial stability of the enterprise:

8. The financial stability ratio shows the ratio of equity and long-term liabilities to the amount of economic resources:

9. The indicator of financial leverage characterizes the dependence of the enterprise on long-term liabilities:

Indicators for assessing the liquidity of the assets of the investee:

1. Current or total coverage ratio:

2. The ratio of accounts payable and receivable:

3. The absolute liquidity ratio characterizes the immediate readiness of the enterprise to liquidate short-term debt:

4. The rate of cash reserves. The indicator is typical for enterprises that have available securities:

Indicators for assessing the profitability of the investment object:

1. Return on investment ratio:

2. Profitability ratio of equity, which characterizes the effectiveness of investments in equity:

3. The operating profitability of the sale characterizes the amount of net profit per unit of products sold and shows that the company has the opportunity to receive not only sales proceeds, but also profit:

4. The profitability ratio of assets shows the amount of net profit per unit value of assets:

Indicators for assessing the business activity of the investment object:

1. Labor productivity, which characterizes the efficiency of people's labor activity:

2. Return on assets characterizes the efficiency of the use of fixed assets and shows the level of output per 1 rub. fixed assets:

3. Turnover of funds in settlements (in turnover). It shows the average number of turnovers of funds for the corresponding period:

4. The turnover ratio of funds in the calculations (in days). This coefficient shows how many days the funds will turn over:

5. Turnover of inventories (in turnovers) indicates the number of turnovers of inventories for the corresponding period:

6. Inventory turnover ratio (in days). It indicates the number of days that the company needed to replenish its inventories:

7. Turnover of own capital indicates the number of turnovers of own capital for the corresponding period:

8. The turnover of fixed capital indicates the number of turnovers of fixed capital for the corresponding period:

All groups of indicators for assessing investment attractiveness, as well as indicators placed in these groups, are assigned the corresponding numerical values.

First of all, it is necessary to establish the weight of group and single indicators.

Thus, the weight of the j-th indicator in i-th group taking into account the group weight can be determined by the formula:

B ij \u003d P ij * G i / 100,

where P ij - the weight of the j-th indicator in the i-th group; Г i - the value of the group weight.

After determining the main parameters and the direction of their optimization, it is necessary to determine the proportion of the variation range, which is an integral part of the corresponding formula, with the help of which the transition from indicators different in terms of characteristics and units of measurement to compared values ​​is carried out. This share characterizes the quantitatively defined area of ​​existence of the indicator:

Ij \u003d P ij max - P ij min,

where? ij - share of the variation range for the j-th indicator in the i-th group.

Then the values ​​of all indicators are ranked. In particular, the ranking of the values ​​of the indicator j can be determined by the formula:

R ij (t) = (Ф ij - P ij (t) min (max)) / ? ij ,

where Ф ij - the actual value of the indicator in accordance with the accepted set j-th indicators in i-th groups; P ij (t) min (max) - values ​​of extreme indicators, which are set depending on the direction of optimization.

At t = 1, the minimum value Р ij min (1) is taken;

At t = 2, the maximum value of P ij max (2) is taken;

At t = 1 the value of R (t) ij is maximized, at t = 2 it is minimized.

Payment integral indicator The investment attractiveness of an enterprise embodies the values ​​of all indicators involved in the method in determining this attractiveness.

The main parameters for determining the integral indicator of the investment attractiveness of the organization Table 4.

Group indicators of weight, G, %	Indicators in groups and their weighting	The minimum value of the index Рij	The maximum value of the index Рij	Direction of optimization
Group 1 --25
Group 2-26
group 3--15
Group 4--13
Group 5-21

Based on the calculated indicators, the integral values ​​of the indicator of the investment attractiveness of the enterprise are determined.

The disadvantage of the method of integral assessment of investment attractiveness is its complexity, both in terms of the formation of generalized assessments of investment attractiveness, and in terms of their perception by a potential investor.

When assessing the investment attractiveness of an enterprise, the following aspects are considered: the attractiveness of the enterprise's products, personnel, innovative, financial, territorial, and social attractiveness.

Analysis of the attractiveness of the company's products for any investor is its competitiveness in the domestic and foreign markets. Competitiveness of products is a multidimensional indicator, composed of the following factors:

Analysis of the level of product quality - its compliance with domestic and international standards, the availability of international certificates of product quality, reliability, durability, fashion, etc.;

Analysis of the price level for products, its correlation with the prices of competitors and the prices of substitute goods;

Analysis of the level of diversification, that is, the company's diversification, its ability to survive in conditions of different profitability of manufactured products.

The general indicator of the analysis of the competitiveness of products and their investment attractiveness is the price. It is formed under the influence of supply and demand and can indirectly express competitiveness by comparing them.

The analysis of the personnel attractiveness of an enterprise is characterized by three components:

Business qualities of the leader and his "team";

The quality of the "personnel core" (highly qualified employees);

The quality of the staff in general.

An analysis of the innovative attractiveness of an enterprise is the effect of medium-term and long-term investments in innovations in the enterprise. When analyzing the innovative attractiveness of an enterprise, the presence of:

Strategies for the technical development of production, as the basis of all other innovations;

Production investment programs from various sources.

The following indicators are usually used: the structure of fixed assets and the efficiency of their use, the sources of technical renovation of production, the share of profit on technical re-equipment enterprises.

Analysis of the territorial attractiveness of an enterprise for investors is determined by the following factors:

The remoteness of the enterprise from the main transport routes, connecting the city with other regions, the availability of access roads for the transport of goods;

Remoteness of the enterprise from the city center, where local authorities, leading organizations of market infrastructure, etc. are concentrated;

The price of land, which is largely differentiated depending on the criteria mentioned above.

The social attractiveness of an enterprise is determined by the social security of the employees of this enterprise. An indicator of the social attractiveness of an enterprise can be considered the coefficient of social attractiveness, calculated as the ratio of the average wage of one employee to the cost of a rational consumer basket in the region.

Analysis of the financial attractiveness of the enterprise is to minimize costs and maximize profits. This is a multicomponent concept, consisting of many indicators calculated on the basis of the enterprise's reporting documents.

Indicators financial position enterprises are the most significant for investors.

There are the following stages of assessing the financial attractiveness of the enterprise:

The first stage involves working with such reporting documents as balance sheet and a statement of financial results. On their basis, the calculation of indicators characterizing various aspects of financial attractiveness is carried out;

The second stage is methodological. It consists in grouping indicators according to general criteria. Five main directions for analyzing the financial position of an enterprise are proposed:

1) property structure;

2) liquidity indicators;

3) indicators of long-term financial stability;

4) indicators of business activity;

5) profitability indicators;

The third stage of the assessment consists of two parts:

1) calculation of the total coefficients of deviations of the values ​​of each compared indicator from the reference value;

2) determination of the creditworthiness class of the borrower.

Thus, when assessing the financial attractiveness of an enterprise, such indicators as the profitability of the enterprise, liquidity of assets, and financial stability are used.

Assessment of the current state must begin with an analysis of the property status of the enterprise, which is characterized by the composition and condition of the assets. Speaking about the analysis of the property status, one should keep in mind not only the subject-material characteristic, but also the monetary value, which makes it possible to judge the optimality, possibility and expediency of investing financial results into the assets of the enterprise. The property and financial position of the enterprise are two sides of the economic potential, which are closely interconnected.

The property structure is analyzed on the basis of a comparative analytical balance sheet, which includes both vertical and horizontal analysis. The structure of the value of the property gives a general idea of ​​the financial condition of the enterprise. It shows the share of each element in assets and the ratio of borrowed and own funds covering them in liabilities. Comparing the structural changes in assets and liabilities, we can conclude through which sources new funds were mainly received and in which assets these new funds were invested.

Balance liquidity analysis. The most important indicator of the financial position of the enterprise is the assessment of its solvency, which is understood as the ability of the enterprise to timely and in full to make settlements on short-term obligations to counterparties.

The ability of an enterprise to quickly release from economic circulation the funds necessary for normal financial and economic activities and repayment of its current (short-term) obligations is called liquidity. Moreover, liquidity can be considered both at the moment and in the future.

The liquidity of an asset is understood as its ability to be transformed into cash, and the degree of liquidity is determined by the length of the time period during which this transformation can be carried out. The shorter the period, the higher the liquidity of this type of assets.

Speaking about the liquidity of an enterprise, they mean the presence of working capital in an amount theoretically sufficient to pay off its obligations.

The main sign of liquidity is the formal excess (in valuation) of current assets over short-term liabilities. The greater this excess, the more favorable the financial condition of the enterprise from the position of liquidity. If the amount of current assets is not large enough compared to short-term liabilities, the current position of the enterprise is unstable and a situation may well arise when it does not have enough cash to pay for its obligations.

The liquidity of an enterprise is most fully characterized by comparing assets of one or another level of liquidity with liabilities of one or another degree of liquidity.

All assets of the enterprise are grouped depending on the degree of liquidity, that is, the rate of conversion into cash, and are arranged in descending order of liquidity, and liabilities - according to the degree of urgency of their repayment and are arranged in ascending order of terms.

A 1 . The most liquid assets - these include all items of the enterprise's cash and short-term financial investments (securities).

A 1 \u003d p. 250 + p. 260.

A 2 . Marketable assets - accounts receivable, payments for which are expected within 12 months after the reporting date: A 2 \u003d line 240.

A3. Slowly realizable assets - items in section 2 of the balance sheet asset, including inventories, VAT, receivables (... after 12 months) and other current assets. A3 = p. 210 + p. 220 + p. 230 + p. 270. Difficult-to-sell assets - articles of section 1 of the asset balance - non-current assets.

A 4. Non-current assets = p. 190.

Liabilities of the balance are grouped according to the degree of urgency of their payment.

P1. The most urgent obligations - these include accounts payable: P 1 \u003d p. 620.

P2. Short-term liabilities are short-term borrowed funds, debts to participants for the payment of income, other short-term liabilities: P 2 \u003d line 610 + line 630 + line 660.

P3. Long-term liabilities are balance sheet items related to sections 4 and 5, i.e. long-term loans and borrowings, as well as deferred income, reserves for future expenses and payments: P3 = line 590 + line 640 + line 650.

P4. Permanent, or stable, liabilities are the articles of section 3 of the balance sheet Capitals and reserves. If the organization has losses, then they are deducted: P4 \u003d p. 490.

The balance sheet is absolutely liquid if for each group of obligations there is an appropriate coverage of assets, that is, the company is able to pay off its obligations without significant difficulties. The lack of assets of varying degrees of liquidity indicates possible complications in the fulfillment of their obligations. Liquidity conditions can be presented in the following form: A1P1, A2P2, A3P3, A4P4.

The fulfillment of the fourth inequality is obligatory when the first three are met, since A1+A2+A3+A4=P1+P2+P3+P4.

Theoretically, this means that the company has a minimum level of financial stability - it has its own working capital (P4-A4)>0.

In the case when one or more inequalities of the system have the opposite sign from that fixed in the optimal variant, the liquidity of the balance to a greater or lesser extent differs from the absolute one. As a rule, the lack of highly liquid funds is compensated by less liquid ones.

This compensation is only of a calculated nature, since in a real payment situation less liquid assets cannot replace more liquid ones.

The balance is absolutely not liquid, the company is not solvent if there is a ratio opposite to absolute liquidity:

A1P1, A2P2, A3P3, A4P4.

This state is characterized by the absence of the enterprise's own working capital and the inability to pay off current liabilities without selling non-current assets.

The analysis of the liquidity of the balance sheet carried out according to the above scheme is approximate. More detailed is the analysis of solvency using financial ratios.

The most important indicator of the financial position of the enterprise is the assessment of its solvency, which is understood as the ability of the enterprise to timely and in full to make settlements on short-term obligations to counterparties.

Solvency means that the enterprise has cash and cash equivalents sufficient to pay for accounts payable requiring immediate repayment. Thus, the main signs of solvency are:

a) the presence of sufficient funds in the current account;

b) the absence of overdue accounts payable.

For a generalized assessment of liquidity and solvency of the enterprise, special analytical coefficients are used. Liquidity ratios reflect the company's cash position and determine its ability to manage working capital, that is, at the right time, quickly turn assets into cash in order to pay off current liabilities. In foreign and domestic literature, three key liability ratios are used depending on the speed of sale of certain types of assets: the liquidity ratio or the degree of coverage of current absolute liquidity by property assets, the quick liquidity ratio and the current liquidity ratio (or coverage ratio). All three indicators measure the ratio of a company's current assets to its short-term debt. In the first coefficient, the most liquid current assets are taken into account - cash and short-term financial investments; in the second, accounts receivable are added to them, and in the third, inventories, that is, the calculation of the current liquidity ratio is practically the calculation of the entire amount of current assets per ruble of short-term debt. This indicator is accepted as the official criterion of insolvency of the enterprise.

The analysis allows to identify the solvency of the enterprise, which is one of the quantitative measures of investment attractiveness. A number of coefficients have been adopted to characterize the solvency of an enterprise.

The current liquidity ratio shows whether the enterprise has enough funds that can be used by it to pay off its short-term obligations during the year. This is the main indicator of the company's solvency. The current liquidity ratio is determined by the formula:

Ktl \u003d (A1 + A2 + A3) / (P1 + P2) (1.1)

In world practice, the value of this coefficient should be in the range of 1-2. Naturally, there are circumstances under which the value of this indicator may be higher, however, if the current liquidity ratio is more than 2-3, this, as a rule, indicates an irrational use of the enterprise's funds. The value of the current liquidity ratio below one indicates the insolvency of the enterprise.

The quick liquidity ratio, or "critical assessment" ratio, shows how much the company's liquid assets cover its short-term debt. Quick liquidity ratio is determined by the formula:

Kbl \u003d (A1 + A2) / (P1 + P2) (1.2)

The liquid assets of the enterprise include all current assets of the enterprise, with the exception of inventories. This indicator determines what share of accounts payable can be repaid at the expense of the most liquid assets, i.e. it shows what part of the company's short-term liabilities can be immediately repaid at the expense of funds in various accounts, in short-term securities, as well as settlement income. The recommended value of this indicator is from 0.7-0.8 to 1.5.

The absolute liquidity ratio shows what part of accounts payable the company can repay immediately. The absolute liquidity ratio is calculated by the formula:

Kal \u003d A1 / (P1 + P2) (1.3)

The value of this indicator should not fall below 0.2.

Thus, the investment attractiveness of an enterprise directly depends on the liquidity of its balance sheet, and in order to increase investment attractiveness, an enterprise should strive for absolute liquidity and solvency.

The financial stability of the enterprise determines the long-term (as opposed to liquidity) stability of the enterprise. It is associated with dependence on creditors and investors, that is, with the ratio of "own capital - borrowed funds." The presence of significant liabilities that are not fully covered by their own liquid capital creates the prerequisites for bankruptcy if large creditors demand the return of their funds. But at the same time, investing borrowed funds can significantly increase the return on equity. Therefore, when analyzing financial stability, one should consider a system of indicators that reflect the risk and profitability of the enterprise in the future.

Financially stable is such an economic entity that covers investments in assets (fixed assets, intangible assets, working capital) at its own expense, does not allow unjustified receivables and payables, and pays its obligations on time.

The task of financial stability analysis is to assess the size and structure of assets and liabilities. This is necessary to answer the questions: how independent is the enterprise from a financial point of view, is the level of this independence growing or decreasing, does the state of its assets and liabilities meet the conditions of financial and economic activity? Indicators that characterize independence for each element of assets and for property as a whole make it possible to measure whether the analyzed enterprise is sufficiently stable.

One of the criteria for assessing the financial stability of an enterprise is the surplus or lack of sources of funds for the formation of reserves and costs, which is determined as the difference between the value of sources of funds and the value of reserves and costs.

This refers to the security of certain types of sources of formation (own, credit and other borrowed), since the sufficiency of the sum of all possible types of sources (including short-term accounts payable and other liabilities) is guaranteed by the identity of the results of the asset and liabilities of the balance sheet. To assess the state of reserves and costs, the data of the group of articles "Reserves" of the II section of the asset balance are used.

In addition to absolute indicators, financial stability is also characterized by relative indicators, which can be divided into two groups. The first group combines indicators that determine the state of working capital, among them are:

Equity ratio;

The coefficient of provision of material reserves with own working capital;

The coefficient of maneuverability of own funds, etc.

The second group combines indicators that determine the state of fixed assets and the degree of financial independence:

3) coefficient of autonomy;

4) coefficient of financial dependence;

5) coefficient of real assets in the property of the enterprise;

6) the ratio of own and borrowed funds, etc.

The coefficient of autonomy (financial independence) shows specific gravity own capital in the balance sheet. The higher the value of this ratio, the more financially stable the company. The addition to this indicator is the coefficient of financial dependence - their sum is equal to 1 or 100%.

The ratio of borrowed and own funds (capitalization ratio) gives the most general assessment of the financial stability of the enterprise. It shows the share of borrowed funds in the total capital structure.

According to the equity capital flexibility ratio, one can judge what part of own working capital is used to finance the current activities of the enterprise, that is, what part is invested in working capital, and what part is capitalized.

The coefficient of provision with own working capital characterizes the ratio of own and borrowed funds and determines the degree of provision with own working capital necessary for the financial stability of the enterprise.

The ratio of real assets in the property of the enterprise (the ratio of the property for industrial purposes) shows the share in the property of the enterprise occupied by the property for industrial purposes.

The financial stability ratio shows what proportion of funds we can use in the activity for a long time. The financing ratio shows whether an enterprise can give loans and borrowings, and whether it is able to pay them off at the beginning of the period. The ratio of stocks with own working capital shows whether the company can provide funding for stocks with its own working capital. The ratio of the structure of total long-term capital shows what part of fixed assets and capital investments financed with long-term debt.

The short-term debt ratio shows what proportion of the company's funds short-term debt payment obligations. During the entire period, it behaves relatively stable.

The non-current assets coverage ratio shows what part of the company's own funds is financed by non-current assets.

The calculated actual coefficients are compared with standard values, with indicators of the previous period, with a similar enterprise, and thereby reveals the real financial condition, strengths and weaknesses of the enterprise.

The business activity of the enterprise is characterized by the dynamism of its development and the achievement of its goals, reflected by a number of natural and cost indicators, as well as the effective use of the economic potential of the enterprise and the expansion of the market for its products.

The activities of any enterprise can be characterized from different angles, and an assessment of business activity at a qualitative level can be obtained as a result of comparing the activities of this enterprise and related enterprises in terms of capital investment. Such qualitative, that is, non-formalizable criteria are:

Breadth of sales markets;

Availability of products for export;

The reputation of the enterprise, expressed, in particular, in the popularity of customers using the services of the enterprise.

As for the quantitative assessment of the analysis of the business activity of the enterprise, the following can be considered here:

The degree of implementation of the plan for the main indicators, ensuring the specified rates of their growth;

The level of efficiency in the use of enterprise resources.

The main estimated indicator is the volume of sales and profit. At the same time, the most effective ratio is when the rate of change in balance sheet profit is higher than the rate of change in sales proceeds, and the latter is higher than the rate of change in fixed capital, that is

TP(PB) > TP(V) > TP(OK) > 100%;

This dependency means that:

a) the economic potential of the enterprise increases;

b) the volume of sales increases at a higher rate;

c) profit increases at a faster pace.

For the implementation of the second direction, the following can be calculated: output, return on assets, turnover of inventories, duration of the operating cycle, turnover of advanced capital.

Generalizing indicators include the resource return index and the economic growth sustainability index.

Resource productivity (turnover ratio of fixed capital) - characterizes the volume of products sold per ruble of funds invested in the activities of the enterprise. The growth of this indicator in dynamics is considered as a favorable trend.

The economic growth sustainability coefficient shows how, on average, the pace the enterprise can develop in the future (this indicator is for characterizing joint-stock companies).

Profitability is a relative indicator that determines the level of profitability of a business. Profitability indicators characterize the efficiency of the enterprise as a whole, the profitability of various activities (production, commercial, investment, etc.). They characterize the final results of management more fully than profit, because their value shows the ratio of the effect to cash or consumed resources. These indicators are used to assess the activities of the enterprise and as a tool in investment policy and pricing.

Profitability indicators as the main characteristic of the profitability of the enterprise's activities are the most important for investors, as they characterize the efficiency of the company's activities, and, consequently, indirectly, the profitability of the investments made. Although for the investor, of course, relative profitability indicators are of priority importance, the very fact that the enterprise has a profit is already important.

Profitability indicators can be combined into several groups:

Indicators characterizing the payback of production costs and investment projects;

Indicators characterizing the profitability of sales;

Indicators characterizing the profitability of capital and its parts.

Product profitability ( cost recovery ratio ) is calculated by the ratio of profit from sales before payment of interest and taxes to the amount of costs for products sold.

Shows how much the company has a profit from each ruble spent on the production and sale of products. It can be calculated for individual types of products and for the enterprise as a whole. When determining its level as a whole for the enterprise, it is advisable to take into account not only sales, but also non-operating income and expenses related to core activities.

The profitability of investment projects is determined in a similar way: the received or expected amount of profit from investment activity refers to the amount of investment costs.

Profitability of sales (turnover) is calculated by dividing the profit from the sale of products, works, services before payment of interest and taxes by the amount of proceeds received. It characterizes the efficiency of production and commercial activities: how much profit the company has from the ruble of sales. This indicator is calculated as a whole for the enterprise and for individual types of products.

Return on total capital is calculated as the ratio of gross profit before payment of interest and taxes to the average annual cost of the entire total capital.

Return on operating capital is calculated as the ratio of profit from operating activities before payment of interest and taxes to the average annual amount of operating capital. It characterizes the return on capital involved in the operating process.

In the process of analyzing the profitability of an enterprise, one should study the dynamics of the listed profitability indicators, the implementation of the plan in terms of their level, and conduct inter-farm comparisons with competing enterprises.

According to the existing methodology, the criterion for assessing the investment attractiveness of a borrower is the "class of the borrower" assigned on the basis of calculations, which, depending on the nominal value, is characterized by the following estimates:

Class I - organizations whose loans and obligations are supported by information that allows you to be sure of the return of loans and the fulfillment of other obligations in accordance with the agreements, with a good margin for possible error;

Class II - organizations that demonstrate a certain level of risk in terms of debt and liabilities and reveal a certain weakness in financial performance and creditworthiness. These organizations are not yet considered risky;

III class - these are problem organizations. There is hardly a threat of loss of funds, but the full receipt of interest, the fulfillment of obligations seems doubtful;

Class IV - these are organizations of special attention, tk. there is a risk in dealing with them. Organizations that may lose funds and interest even after taking measures to improve the business;

V class - organizations of the highest risk, practically insolvent.

Thus, all components of the analysis of the investment attractiveness of the enterprise can be divided into three groups:

First of all, the investor is usually interested in what is produced at the enterprise, where it is located and how enterprising its managers and staff are. Therefore, the initial components of investment attractiveness are product, personnel and territorial planning;

Financial analysis is singled out as the main component of the analysis of the investment attractiveness of an enterprise, because, precisely, in the finances of an enterprise, as in a mirror, the main results of its activities (profitability, profitability), business activity (capital productivity, working capital turnover) and financial viability (liquidity indicators) are reflected , self-sufficiency);

The innovative, conversion and social attractiveness of an enterprise are considered as estimates of the prospects of its development for investors. Therefore, they are separated into a separate group. Privatization attractiveness can also be attributed to the same group of terms, although in terms of its significance and priority, it can also be attributed to the first group.

The final rating assessment takes into account all the most important parameters (indicators) of the financial, economic and production activities of the enterprise, i.e. economic activity in general. When building it, data on the production potential of the enterprise, the profitability of its products, the efficiency of the use of production and financial resources, the state and allocation of funds, their sources and other indicators are used.

A quantitative assessment of the investment attractiveness of the enterprise is given in table 1.2.

Table 1.2 - Parameters of the investment attractiveness of the enterprise

Each of the criteria given in Table 1.2, such as: the attractiveness of products for the consumer, personnel, territorial, financial attractiveness, etc., are assessed using the level of attractiveness (A - high, B - medium, C - low). Each indicator value is assigned a specific score. The highest score should correspond to the most favorable value, the lowest score to the most critical. The value scale will look like this:

Level A coefficients - 10 points;

Level B coefficients - 6 points;

Level C coefficients - 2 points.

The maximum value of the scale is 60 points (10*6), where 10 is the maximum score for the calculated coefficients of each group of indicators; 6 - the number of indicators characterizing investment attractiveness.

The minimum value of the scale is 12 points (2*6), where 2 is the minimum score for the calculated coefficients of each structural group; 6 - the number of indicators characterizing investment attractiveness.

Based on these considerations, the threshold values ​​of the point scale were determined:

Level A - 49 - 60 points;

Level B - 28 - 49 points;

Level C - 12 - 28 points.

In order to determine the final level of attractiveness of an economic entity, weight coefficients are assigned to each component, depending on its significance.

The proposed system of indicators is based on data from public reporting of enterprises. This requirement makes the assessment mass, allows you to control changes in the financial condition of the enterprise by all participants in the economic process.

YES. Endowitzky D. e. PhD, Professor, Voronezh State University
V.E. Sobolev Leading Specialist of LLC "Scientific Center "Audit-Science", authors of the book "Economic Analysis of Mergers / Acquisitions of Companies", Publishing House "Knorus"

Length of time on the market

Over two years

Presence of competition

Absence of major competitors (whose share in comparison with the sales volume is more than 30%)

Product diversification

A wide range of products, various sales directions (in the domestic and foreign markets) uniqueness of products

Market share

Positive dynamics according to retrospective analysis

seasonality

The absence of the influence of this factor

Sum of points ∑ А ij

MAX score

Block 2 in fig. 6 - "Assessment of business reputation" (Table 4).

Table 4. Evaluation of business reputation

		Criteria for a positive evaluation
	Reviews in the media	Positive
	Reviews of business partners	Positive
	Presence of wage arrears	Missing
	Reputation for product quality	Positive (availability of quality certificates, GOSTs)
	Sum of points

Block 3 in fig. 6 - "Assessment of the company's dependence on large suppliers and buyers" (Table 5).

Table 5. Assessment of the company's dependence on large suppliers and buyers

		Criteria for a positive evaluation
	Dependence on large buyers and suppliers	Missing
	Share of cash settlements with buyers	The monetary form of payments prevails
	Duration of economic relations	Most of the economic ties are maintained with permanent counterparties (more than two years)
Sum of points
Maximum possible points

Block 4 in fig. 6 - "Evaluation of the company's shareholders" (Table 6).

Table 6. Assessment of the company's shareholders

		Criteria positive evaluation
	Information about the composition of shareholders	The list of shareholders is transparent
	Information about shareholders	Shareholders and owners are employees of the enterprise, they are not fictitious persons, they do not act in favor of other persons
	The nature of shareholder participation in management	Participate in the management of the company's activities, show interest in the company's activities
	Conflicts between shareholders and/or management	There is no information about the presence of conflicts
	Distribution of blocks of shares	A controlling stake has not been formed; the share of the maximum block of shares owned by one shareholder does not exceed 20%; "dispersion" of the authorized capital
Sum of points (∑ D ij)
Maximum possible points

Block 5 in fig. 6 - "Assessment of the level of leadership" (Table 7).

Table 7. Criteria for the level of company management

		Criteria for a positive evaluation
	Executive head of the company	Transparency of the appointment to the position, the presence of a special economic education, a long work experience in managerial positions, can influence the adoption of strategic decisions
	Sustainability of the management team	Stability, highly qualified personnel, good recommendations in professional circles
	Regulatory base of the company	The presence of an internal regulatory framework, characterized by a high degree of detail, regulating the procedure for making managerial decisions, the organizational structure of the organization
4	Planning Organization	Availability of operational, strategic business plans drawn up on a regular basis
	Conflicts with tax and other government agencies and labor personnel	Lack of conflicts and information about such conflicts, compliance with established norms, rules of activity, lack of information about conflicts with labor personnel
Sum of points ∑ E ij
Maximum possible points

Based on the data of information blocks 1-6 of the general section of the methodology, it is possible to give an intermediate assessment of the level of investment attractiveness of the target company (Table 8).

Table 8. Interim assessment of the investment attractiveness of the target company based on the analysis of its qualitative characteristics

	Group name	Sum of points		Total points (2*3)
	Assessment of the market position ∑ A ij
	Evaluation of business reputation ∑ В ij
	Assessment of dependence on large suppliers and buyers ∑ С ij
	Evaluation of the company's shareholders ∑ D ij
	Assessment of the level of company management ∑ E ij
	The final score is ∑А ij +∑В ij. +∑С ij + ∑ D ij +∑ E ij
Maximum score
Final benchmark score (subject to ∑ A ij, ∑ B ij. ∑ C ij, ∑ D ij , ∑ E ij - max; Х ij = 0.2)

The data presented in table. 8 require the following comment. The value of the weighting factor for each group is determined based on the professional judgment of the analyst. In our case, we considered all groups of factors equally significant, and therefore all of them were assigned equal weights (Х ij = 0.2).

Analysis of the information contained in the table. 8, allows us to conclude that the intermediate assessment of the investment attractiveness of company A is not the maximum, which is due to the loss of points for such assessed positions as "Evaluation of the company's shareholders", "Assessment of dependence on large suppliers and buyers", "Assessment of the market position" .

The next stage of the analysis, according to the scheme presented in Fig. 6 is analysis of the strategic effectiveness of the target company. To do this, we propose to use an approach based on the application of the Spearman coefficient.

Implementation of the strategy is accompanied by changes in comparative dynamics economic indicators, therefore, the task of its assessment is to measure the degree of compliance of the actual structure of indicators with the normative one. The basis for assessing the business activity of an organization, taking into account the conditions of an intensive type of development, is net profit, sales profit, sales proceeds, cost of goods sold, works, services, as well as indicators characterizing the efficiency of the use of material, labor and financial resources. Normative system of indicators (normative series) the growth rate of the organization's development indicators is as follows:

where T— indicator growth rate (%); state of emergency- net profit, PP- revenue from sales; VR- sales revenue; DZ- receivables; SS- total cost of sales; RFP- salary fund.

The normative series of growth rates of the organization's development indicators is the basis for comparison with the actual series, which is determined in several stages:

At the first stage, the absolute indicators of the financial and economic activities of the organization are summarized (Table 9):

Table 9. Financial and economic performance of company A in 2001-2005 (thousand roubles.)

Indicators	Pure profit	Profit from sales	Revenue from sales	Accounts receivable debt	Cost price

The data presented in table. 9 do not allow assessing the activity of the analyzed company, since they are difficult to compare. Therefore, the next step is to identify their dynamics, based on the determination of growth rates (Table 10) using formula (2):

Table 10. Growth rates of financial and economic indicators of company A in 2001-2005 (%)

Indicators	Pure profit	Profit from sales		Accounts receivable debt	Cost price

Based on the data obtained on changes in financial and economic indicators, their time series are formed, which are compared with the normative series (formula (1)) in order to determine the rank correlation coefficient (Table 11). To calculate this coefficient, formula (3) is used:

, (3)

where d— the difference between the actual rating of the indicator and the normative one;

n— the number of indicators (ranks) in the dynamic series.

Based on the calculation formula, the coefficient can take values ​​in the range [-1;1].

Table 11. Actual time series of indicators of financial and economic activity of company A

Indicators							Coefficient spearman correlations
Normative range of indicators

Based on the calculation logic, an unambiguous conclusion about the effectiveness of the strategic development of the M&A target company can be made if the Spearman correlation coefficient is equal to one (the actual time series of financial and economic activity indicators coincide with the normative ones).

However, in practice, this situation is rare, therefore, as part of the analysis of investment attractiveness, we propose the following system for assessing the level of strategic efficiency of the target company, determined on the basis of calculating the Spearman coefficient (Table 12):

Table 12. Final assessment of the level of strategic efficiency of the company-object of analysis

	Criteria for evaluation
	Spearman coefficient = 1, and as trend analysis shows, this is a stable trend
	The Spearman coefficient is in the range (+0.5; +1) throughout the entire study period, the indicators "Net profit", "Profit from sales" do not fall below the third position in the actual dynamic series
	The Spearman coefficient is in the range , there is no clear dynamics of the indicators of the actual series
	The Spearman coefficient is in the range (-0.5; 0). There is a significant scatter of indicators in the actual dynamic series. There is no clear trend in their change over the study period
	Spearman's coefficient is in the range [-1; -0.5]; a clear trend over the entire study period. The indicators "Net profit", "Profit from sales", "Revenue from sales" close the dynamic series (formula (1))

Based on the data in Table. 11, we believe that we can conclude that the strategic effectiveness of company A is not effective, moreover, there is a deterioration in dynamics in 2004, 2005. The largest gap is between the actual and standard ranks of the “Net profit” indicator, while there is practically no gap in the ranks for such an indicator as “Profit from sales”, therefore, it can be assumed that a significant share in the structure of expenses is occupied by: other expenses. Assessment of the strategic effectiveness of company A, given on the basis of our proposed in table. 12 criteria, 2 points.

Special section of methodology

Analysis of the investment attractiveness of the target company (the motive for integration is diversification)

We propose the following structure of this section (Fig. 7)

Rice. 7. The structure of a special section of the methodology for the investment attractiveness of the M&A target company (for the case of diversification and restriction of access to internal information of the target company)

Each of the ones shown in Fig. 7 blocks involve a certain set of analytical procedures, the implementation of which allows assessing the level of investment attractiveness of the target company from the standpoint of the selected criterion.

Block 1 "Evaluation of the overall performance"

We believe it is advisable to use the method of matrix diagnostic analysis described by A.A. Bachurin. The essence is the construction of a dynamic matrix model, the elements of which are indices of the main indicators of the organization's activities, united in three groups: final, characterizing the result of activity (sales profit, sales revenue); intermediate, characterizing the production process and its result (cost of sales); initial, characterizing the amount of resources used (current assets, fixed assets, average number of employees) (Table 13):

Table 13. Local elements of the index matrix of the performance of the target company A

	Profit from sales (P)	Sales revenue (B)	Current assets (OA)	Fixed assets (OS)
Profit from sales (P)
Sales revenue (B)	Growth rate P/B =
Current assets (OA)	Growth rate	Growth rate
Fixed assets (OS)	Growth rate	Growth rate	Growth rate
Average number of employees (H)	Growth rate	Growth rate	Growth rate	Growth rate

Table data. 13 require comment. The growth rate of indicators is calculated by the formula (4):

where is the period n— reporting period;

period ( n-1) - the period preceding the reporting period.

A comprehensive assessment of the effectiveness of the production and economic activities of the target company is made on the basis of a generalizing indicator of the level of efficiency (5) according to the formula of the arithmetic average indices of the target elements of the matrix presented in Table. 13:

where K.efficiency- an indicator of a comprehensive assessment of the effectiveness of the production and economic activities of the target company;

- double the sum of all indicators "Growth rate of the Indicator ij", presented in the matrix (Table 11) (under the diagonal);

n is the number of initial parameters of the matrix (in this case, five parameters).

Company A's efficiency ratio calculated using formula (5) is 1.1409.

Table 14. Evaluation of the performance of the target company

Range of K.efficiency values

Presented in table. 14 ranges of efficiency ratio values ​​and the corresponding assessment of the target company are selected in accordance with our subjective judgment. However, it should be noted that the closer (or more) to unity the value of the efficiency ratio, the more investment attractive the company is, since there is a positive dynamics of key indicators characterizing the efficiency of its activities. When conducting an analysis by constructing a dynamic matrix, one should pay attention to the dynamics of changes in each indicator in order to identify negative trends.

The second stage is an assessment of the proportionality of economic growth based on:

• the “golden rule” of the economy: Sales profit growth rate > Sales revenue growth rate > Asset growth rate > 100%;
• extended ratio (proposed by V.V. Kovalev and O.N. Volkova): Net profit growth rate > Sales profit growth rate > Sales proceeds growth rate > Assets growth rate > Average annual borrowings growth rate > Average annual short-term accounts payable growth rate debt > Growth rate of average annual receivables > Growth rate of average annual long-term receivables.

Data for assessing the proportionality of the economic growth of company A are presented in Table. 15.

Table 15. Growth rates of financial and economic indicators of company A

Indicator	Growth rates of indicators
Net profit
Revenue from sales
Sales revenue
Assets (annual average)
Average annual amount of borrowed capital
Average annual short-term accounts payable
Growth rate of average annual accounts receivable

Criteria for evaluating the data in Table. 15 are presented in table. 16.

Table 16. Situation analysis of the proportionality of economic growth

Ratio score "Golden Rule"	Score for advanced ratios
performed	performed
performed	not fulfilled
is not fulfilled, but the growth rate is above 100%.	not met, but growth rate above 100% / below 100% not fulfilled	2 - in case it is a stable trend
not met, growth rates below 100%	not fulfilled

Based on the data in Table. 15, 16 we estimate the proportionality of the economic growth of company A at 3.5 points.

Having identified the general development trends, having calculated the efficiency ratio, in our opinion, as part of the rationale for the investment attractiveness of the target company, it is advisable to evaluate the indicators of business activity and financial performance.

We propose to carry out an analysis of business activity according to the methodology proposed by D.A. Endovitsky, V.A. Lubkov, Yu.E. Sasin , which is based on the classification of business activity into operational, financial and investment-innovative (Table 17):

Table 17. Comprehensive assessment of the business activity of target company A

Indicators	Calculation formula
1. Indicators of operational activity
The share of stocks in current assets (OA)	Note: in this case, average annual values ​​are used in the calculation
Turnover set OA
Kt of operating business activity
2. Indicators of financial activity
The share of loans and borrowings in the amount of short-term liabilities (TO)	note: in the calculation in this case, average annual values ​​are used
Kt ratio of interest income and payments
Kt of financial business activity
3. Indicators of investment and innovation activity
Share of fixed assets (PP) in total assets (A)
Fixed assets update kit (OS)
Kt of investment business activity
Integral indicator (R j)

X ij - standardized relative to the reference indicator, calculated by the formula (6):

, (6)

where And ij— considered i-th indicator, located in the j-th column;

And ij floor.- the indicator corresponding to it, taken as a standard.

Table 18. Final assessment of business activity to justify the investment attractiveness of the target company

Range and dynamics R ij
Range (0; 0.5), steady trend
Range (0; 0.5), fuzzy trend
Range (0.5; 0.8), clear trend
Range (0.5; 0.8), fuzzy trend
Range (0.8; 1), clear trend
Range (0.8; 1), fuzzy trend
Range >1, clear trend
Range >1, fuzzy trend

Based on the criteria given in Table. 20, we estimate the investment attractiveness of company A in the block "Business activity" at 3.5 points.

In the analysis of the investment attractiveness of the target company (the motive for integration is diversification), special attention should be paid to assessing the financial performance (Table 19):

Table 19. Profit quality measures calculated from Company A

Signal indicators	Calculation formula	Meaning		Quality control
Profitability of sales	Sales Profit / Sales Revenue			Deterioration, despite the growth of the “Revenue from sales” indicator
Dynamics net sales margin	Net profit / Revenue from sales (works, services)			Pronounced downward trend in profit quality
Solvency ratio	(Cash balance at n.p. + income for the reporting period) / Cash outflow for the period			A low value indicates a low quality of profit. The trend is negative
Solvency strengthening ratio	Cash inflow / Net income			The growth of the indicator is assessed positively, however, the increase in the previous indicator indicates
				significant increase in cash flow
Production leverage	Sales Profit Growth Rate / Sales Growth Rate			The risk is negligible
Financial leverage	Net profit growth rate / Sales profit growth rate			A significant increase in the indicator indicates a deterioration in the quality of profit, an increase in financial risk
Ratio of own and borrowed capital				The decrease in the indicator is due to the growth in the value of the SC, the rate of which exceeded the growth rate of the SC
Profit adequacy ratio	Net profit/(Sectoral rate of return ÍBalance sheet currency)			A decrease in the indicator indicates a deterioration in the quality of profit

Criteria for evaluating the data in Table. 19 are presented in table. twenty:

Table 20. Criteria for evaluating profit quality indicators

Options for combining indicators
Growth of indicators: profitability of sales, solvency ratio, solvency strengthening ratio with insignificant dynamics of financial and operational risk indicators. Growth of the “Net Assets” indicator
Growth of indicators: profitability of sales, solvency ratio, solvency strengthening ratio with positive noticeable dynamics of financial and operational risk indicators. Growth of the “Net Assets” indicator
The growth rate of financial risk outstrips the growth rate of indicators: return on sales, solvency ratio, solvency strengthening ratio. Insignificant dynamics of the "net assets" indicator
Negative dynamics of indicators: profitability of sales, solvency ratio, solvency strengthening ratio with positive dynamics of risk indicators. Reduction of the “Net Assets” indicator, return on net assets
The solvency ratio is declining, there is no net profit (net loss), the profitability of sales is significantly reduced, the net assets indicator is growing, financial risk is growing

Based on the table. 20 criteria, we evaluate the investment attractiveness of company A in the block "Profit quality indicators" at 2 points.

To obtain a final assessment for a special section of the methodology, we suggest filling out the table. 21.

Table 21. Summary table of evaluation criteria for the case of diversification

Indicator group	Score in points	Weight coefficient	Final grade (1*2)
1. Overall performance
2. Proportional growth
3. Operating, financial, investment and innovation activity
4. Profit quality and net asset dynamics
5. Total points
6. Maximum amount
7. Average score

Table data analysis. 21 allows us to conclude that based on the criteria proposed by us as evaluation criteria for the situation of a merger / acquisition of a company in order to diversify activities, the investment attractiveness of company A is estimated at 3.65 points, which corresponds to the average level. The factor of low assessment of profit quality had the greatest impact on the final (for the special section of the methodology) indicator, which in turn is associated with the negative dynamics of the “net profit” indicator and the positive dynamics of the value of the company's financial risk indicator. We believe that one more explanation should be made to Table. 21: we assigned the values ​​of weight coefficients based on a subjective assessment of the significance of each group of indicators to determine the overall level of investment attractiveness of target company A. For greater clarity, we propose to summarize the results obtained during the analysis in the form of a final table (Table 22).

Table 22. Interpretation of results

		Score in points		A source information
	General section
	Market Position Assessment			Table 1
	Business reputation assessment			table 2
	Assessment of dependence on large suppliers and buyers			Table 3
	Company shareholder assessment			Table 4
	Evaluation of the level of company management			Table 5
	Total score for pages 2-6 (based on weighting factors)			Table 6
	Assessment of strategic effectiveness			Table 10
	Sum of points for the general section
	The motive is diversification
	Evaluation of performance			Table 12
	Proportionality of economic growth			Table 14
	Operational, financial, investment and innovation activity			Table 16
	Profit quality, net asset dynamics			Table 18
	Total score (based on weighting factors)			Table 19
	Final assessment of investment attractiveness (p. 9 + p. 15)

Control section of the methodology

In order to give a final assessment of the level of investment attractiveness of the target company, we propose the following algorithm for calculating the investment attractiveness coefficient:

1. The final coefficient is calculated by the formula of the weighted arithmetic average (7):

, (7)

where aij— weighting coefficient of the evaluation criterion Х ij, and ∑ a ij =1;

Х ij is a standardized indicator of the investment attractiveness of the j-th company (M&A target company). Calculated by formula (8):

, (8)

where b ij- assessment in points of a private indicator of the investment attractiveness of the target company (Table 20, third column);

b imax- the maximum score of a private indicator of investment attractiveness (in accordance with the evaluation system of this methodology; Table 20, fourth column).

Based on the received value To inv.inc. a final conclusion is made about the level of investment attractiveness of the target company (the system of criteria is given in Table 23):

Table 23. Assessment of the investment attractiveness of the target company

Value range K inv.	Characteristic
To inv.inc. = 1	The company is investment attractive in all analytical parameters
	Good level of investment attractiveness. It is necessary to find out for which evaluation indicators the maximum score was not obtained, to determine the degree of their significance.
(0,4 — 0,7) 0.67 - coefficient value for company A	Satisfactory level of investment attractiveness. It is necessary to analyze in detail the indicators for which the maximum score was not obtained. This level indicates the presence of an increased M&A risk, which should be taken into account when choosing a discount rate
	Low level of investment attractiveness of the target company, high M&A risks
	The company is not investment attractive

To calculate the coefficient of investment attractiveness according to the formula (7), we used weight coefficients: 0.2 - for the indicator "Total score for pages 2-6" (or the assessment of company A based on the analysis of qualitative information); 0.3 - for the indicator "Assessment of strategic efficiency"; 0.5 - for the final assessment of investment attractiveness, determined in the framework of a special section of the methodology. As a result, for company A, the investment attractiveness ratio is 0.67, which, based on the criteria we proposed in Table. 23 corresponds to a satisfactory level of investment attractiveness.

The assessment of the level of investment attractiveness, obtained by the proposed calculation algorithm, is basic, but not exhaustive.

The positive aspects of the technique are:

• Comprehensive character: allows assessing the investment attractiveness of the target company at the general level (analysis of qualitative characteristics (the company's position in the market, business reputation, characteristics of management and shareholders, strategic performance) and at the system level (based on the premise: the company is a complex system containing a complex of multilevel subsystems characterized by integrity, qualitative certainty, isolation, autonomy, the presence of external and internal links with each other);
• The methodology is based on a differentiated approach to substantiating the level of investment attractiveness of the target company, depending on the motive for the merger/acquisition transaction;
• Simplicity and clarity;
• The ability to determine the “control points” of the investment attractiveness of the target company, to establish in what parameters the company does not meet the reference level.

At the same time, the following shortcomings of the proposed method should be noted:

It is basic but not exhaustive. In fact, it represents the first stage of a general assessment of the investment attractiveness of the target company: firstly, because it relies only on retrospective indicators; secondly, it does not take into account such an important point as estimating the costs of integration (a company may be (in accordance with the proposed approach to analysis) investment attractive, but the costs that arise as a result of integration will cover the predicted synergistic effect and as a result the transaction will be inefficient Therefore, from our point of view, this methodology should be supplemented by the second stage: a prospective analysis of the synergistic effect (at the pre-integration stage of the M&A economic analysis), an analysis of the costs of integration and a final assessment of the level of investment attractiveness of the target company.

If the value of the costs exceeds the expected benefits from integration, the merger/acquisition is lost, therefore, we believe it is advisable to single out the analysis of the costs of integration, since this indicator largely characterizes the investment attractiveness of the M&A target company.

We propose the following classification of integration costs (Table 24):

Table 24. Classification of integration costs

Classification sign	Classification
By stages of the integration process	Costs of the pre-integration stage; Integration stage expenses; Expenses of the post-integration stage
According to the frequency of occurrence	One-time; recurring
In relation to the integration process	straight; Indirect
By funding source	Funded from own funds; Debt financed
According to target characteristics	strategic nature; Operational
According to the degree of forecasting	Forecasted; emergency
By direction (cost drivers)	Marketing; Production; Control; Analytical direction
In relation to the integration process	Accompanying (as a process); Final (as a result)

In table. 24 shows the author's classification of costs for integration. It should be noted that, from our point of view, the value of the proposed classification of expenses lies in the fact that it allows for a systematic analysis of the costs of conducting a merger/acquisition transaction, assessing the degree of integration risk and giving a more accurate assessment of the level of investment attractiveness of the M&A target company.

From our point of view, as part of the analysis of the investment attractiveness of the M&A target company, one should use the “cost intensity” indicator of the association, which we propose to calculate at the pre-integration stage of the transaction using the formula:

where is the present value of the projected integration costs;

— planned benefits from the M&A transaction.

Definition of synergy (9):

where PV A+B— the current value of the combined company;

PV A (B)- the current value of company A (B).

To calculate the indicator of the cost intensity of the association, we use the data in Table. 25.

Table 25. M&A performance for acquirer A

Indicators (thousand rubles)	Option 1	Option 2
Synergistic effect
Purchase price of company A
Integration cost PV
Total integration costs
Company A's current market value

The data presented in table. 25 require the following comment. Option 1 differs from Option 2 in the way that the present value of company A is calculated. Thus, when calculating the present value of company A under Option 1, the WACC (weighted average cost of capital (or barrier rate of return)) of company A was taken as the discount rate for cash flows, and Option 2 WACC of the acquiring company (Company B).

Based on the data in Table. 25, having calculated the indicator "cost intensity of association", we obtained the following results:

1) according to option 1:

2) according to option 2:

The second option is more preferable, since the combination cost is lower. It should be noted that the difference in indicators is significant, and therefore, estimates of the level of investment attractiveness of company A also differ significantly.

So, given the relatively low assessment of the level of investment attractiveness of company A, given by us on the basis of the calculation of the coefficient of investment attractiveness (formula (7)) Company A's attractiveness should be adjusted downwards and vice versa.

Thus, we consider it appropriate to use the merger cost indicator as part of the analysis of the investment attractiveness of the M&A target company.

The methodology proposed in this article does not include an analysis of M&A risks, which, undoubtedly, is its drawback. However, this direction, from our point of view, is the object of a separate study.

Bibliography:

1. Tryastsina N.Yu. "Comprehensive assessment of the investment attractiveness of enterprises" / N.Yu. Shake. "Economic Analysis: Theory and Practice". - 2006. - No. 18 (75). — P. 5-7.

2. "Investment management" // Electronic textbook http://www.rus-lib.ru/book/38/id/5/128-146.html

3. Encyclopedia "Top manager"

4. Damodaran A. "Investment appraisal: tools and methods for assessing any assets" / A. Damodaran. - M .: "Alpina Business Books", 2006. - 1341 p.

5. Endovitsky D.A. "The Essence and Content of the System of Integration (Economic) Analysis of Economic Entities" / D.A. Endovitsky, V.E. Sobolev. "Audit and the financial analysis". - 2006 - No. 4. - S. 30-43.

6. Ushvitsky L.I. “Improving the methodology for analyzing the solvency and liquidity of organizations” / L.I. Ushvitsky, A.V. Savtsova, A.V. Maleev. "Economic Analysis: Theory and Practice". - 2006. - No. 17(74). — P.21-28. — No. 18(75). - S. 14-19.

Investors in the market are different: international, foreign, domestic, intracorporate. And the level of investment also differs in scope and focus. Imagine the image of a professional direct investor, say, a foreign one. The investor has assets and intends to invest them profitably. He carefully studied the investment climate of our country, regions and industries in which he has some experience in management and success. Finally, the direct investor sees in front of him a list of enterprises that are of interest to 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.

The ratio of the life cycle stages and the attractiveness of the company

The investment attractiveness of an enterprise is indeed an important step in the activities of professional investors interested in effective investments. The attractiveness of the company as an investment object is the result of a set of diagnostic and evaluation activities carried out after the selection of companies in the long list of analysts' industry interests. Each investor asks himself what criteria of investment attractiveness he should apply in order not to make a mistake 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.

The well-known authority on the theory of the life cycle (LC) of a corporation, Dr. Yitzhak Calderon Adizes, observes two large phases in the life cycle: growth and aging. We are more interested in such stages as "courtship-birth", "infancy-childhood", "youth", "early bloom" and "late bloom" in the growth phase. The stages of aging are "decline", "aristocratism", etc. are of much less interest, since investing at this stage is already less attractive, unless the stages of “decline” or “aristocratism” precede the start of a new, more powerful cycle with the organizational and technological re-equipment of the business that accompanies it.

Life cycle stages according to I.K. Adizes

Any of the stages of the growth phase can be a subject for thinking about possible investments, but the stages “Come on”, “Youth” and “Flourishing” are still preferable. The "Infancy" stage is very risky for investments, 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 for the main group of products and services.

How to determine the current stage of the company's life cycle? There are various methods 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 sales of products;
• currency of the balance sheet asset;
• the company's equity capital;
• EBIT, EBITDA, net retained earnings.

Assessment of business attractiveness by SOFIA and life cycle stages

An analysis of the investment attractiveness of an organization based on the life cycle factor should be started with a financial analytical study using the SOFIA method. The method involves the study of how the company makes major financial decisions. Assessment of strategic decision making (or decisions of the "S" type) includes activities that simultaneously represent methods for assessing investment attractiveness. They include the following analytical slices.

1. Economic value added EVA. If the value of EVA systematically shows a positive trend, this means that the market value of the enterprise is growing above the book value of net assets. Therefore, the investment attractiveness of the company is high.
2. The market value of the company, determined by one of the available methods. For the investor, the income method (in terms of the possible sale of the business) and valuation by analogy are preferable.
3. Models of sustainable growth (development) BCG. This method involves the analysis of the correspondence between the identities of the growth rates and the increase in revenue, profit, assets, equity and debts of the enterprise. The most pronounced and synchronous dynamics of indicators is typical for the stages of "Youth" and "Early flowering", which makes them especially attractive for investment.
4. Matrices of financial strategic models. The selected financial strategy of the company serves as an indirect indicator to the investor on the formed trend, how successfully the direction in the two-factor matrix of the results of economic and financial activity is chosen. Under the zone of success is understood the direction towards the creation of liquid funds, and under the zone of deficits - their consumption.
5. DuPont model. This analytical model is more than a hundred years old. There are two-factor and three-factor DuPont models. They are based on a detailed analysis of the profitability of the company's assets.

Factors of investment attractiveness are present not only in the chosen financial strategy of the company. Of no small importance is the current system of operational financial planning (solutions of the "O" type). The field of regular management in the field of finance is no less important for an investor who is considering a business for investment. By it we understand the system of budgetary management and the system of rationing.

An assessment of the investment attractiveness of an enterprise is based on an analysis of a set of existing policies in the field of accounting, cost management, working capital and receivables (solutions of type "F"), the investment policy of an enterprise (solutions of type "I"). The actual level of development of analytical technologies in the financial sector also serves as a certain "beacon" of investment security (solutions of type "A").

Established architecture financial management company using the SOFIA methodology allows you to determine the stage of the life cycle and get complete information on the profitability and prospects of investments. In addition to the financial aspect, diagnostics of organizational behavior in the enterprise is also useful for understanding the moment of development of the company. The relationship between types of management practices and life cycle stages is presented in tabular form below.

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 evaluated during several iterations from different points of view. It is necessary for both sides of the negotiation evaluation process to understand 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, they do not pose a competitive threat. The initiator of the investment by the company must recognize that it will be necessary to discover the main aspects of the results of operations and the management system.

Indicators of profitability, liquidity, financial stability, asset turnover serve as the basis for a focused analysis of the 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. The composition of the indicators used in the analysis, summarized in three groups, is presented below.

Summary table of indicators for the analysis of 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 for the industry, with the level of the previous reporting periods of this company and with the found values ​​of the leading players in the industry and in the territory of competing players. The analysis will require the results of competitive intelligence, information from the central and regional offices of Rosstat (based on average industry indicators) and reporting forms 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 its own funds. The second group shows the company's ability to cover short liabilities due to a 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 ratio is at the level of 0.8.

Cash is the most liquid part of assets. Given this circumstance, absolute liquidity ratios are of particular importance for both investors and suppliers. The most favorable option is considered when this indicator exceeds the value of 0.5, and its optimal value is 0.25. Different types of profitability serve as a separate analytical unit for assessing the attractiveness of a company. Normative values ​​vary greatly by industry, depend on seasonality and, as already noted, on the stage of the life cycle.

Influence of the management level 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 investment task. In the previous sections, financial analysis was emphasized 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 be confirmed by indirect methods and techniques, without which the assessment of the investment attractiveness of an enterprise and local projects is not entirely complete. In addition to the above-mentioned diagnostics of organizational behavior in a company, it is advisable to clarify the type of the current organizational culture. To some extent, it indicates the stage of the life cycle and the level of development of management 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;
• introduction of electronic forms of documentation support for management;
• getting access to international markets on the basis of clear and generally recognized procedures and standards;
• understandable language and format of intra-corporate communications, plans and reporting accepted both by company employees and investor representatives;
• production costs, which receive an optimization perspective along with process optimization procedures through functional cost analysis and business process reengineering.

As a summary

There are at least two parties involved in the investment process. One party giving money for the implementation of capital investments is called an investor and expects a corresponding return. The second party initiates an investment project, needs to be supported by funds if its own capital is not enough. It is called the initiator of attracting an investor. Not only do both parties have to somehow find each other, mutual choice is highly desirable in a win-win arrangement. Unfortunately, the national pastime of Russian business is the performance of rituals that lead to losses.

I understand investors, why there are so few of them, and why the cost of investment funds for companies is inflated. The reason for this lies not only in the fact that the business is really unprofitable and ineffective. In fact, there are quite a few successful companies in the economy. It's all about three important aspects.

1. The initiating companies at first do not want, and only then “cannot” be transparent to potential investors.
2. Regulated governance is often truly shell, mock and formal, including TQM and ISO certifications.
3. Investors need to learn how to convince, analyze and evaluate the investment potential of truly attractive enterprises.

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 activity, are hidden not only from the eyes of investors, but also from the business owners themselves. Double standards in the economy are long overdue. 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. It is as much a matter of state sovereignty as it is of national security. For some reason, it is believed that a break in the stability will occur, and the quality and volume of investments in the real sector will gain new strength.

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 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 are 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 - total share money in circulation and out of 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 single 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 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 research and implementation innovative technologies, increasing production capacity.

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

Most frequently asked question, which can be heard from an investor: “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 materializes 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 effectiveness, scores 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 index.

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 extremely important questions 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.

The most difficult of all the above criteria can cause the assessment market value and the amount of future dividends. 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. To 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.

Also of great importance in the eyes of investors is credit history enterprise, as it means that the organization has practical experience in the development of investments and the fulfillment of 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. The preparation of 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.

New project for an operating enterprise	New venture (business)
Company history, milestones of development	Description of the current activities of the project initiator
Organizational structure of the enterprise	Experience of the project initiator in organizing a new business
Founders (shareholders) of the enterprise	Ownership structure of the new enterprise
The property position of the company	Description of the new project
Description of the main activity	New product market
Project description	Production plan
New product market	Investment in the project
Production plan	Project financial plan
Investment in the project	Annex: historical financial indicators of the business of the project initiators
Financial plan taking into account the current activities of the enterprise

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.