When assessing the investment attractiveness of an enterprise, the following aspects are considered: the attractiveness of the enterprise's products, personnel, innovative, financial, territorial, social attractiveness.
An analysis of the attractiveness of an enterprise's products for any investor is its competitiveness in the domestic and foreign markets. The 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 multi-profile, 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 profits for the technical re-equipment of the enterprise.
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 of the financial position of the enterprise 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 the balance sheet and income statement. 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, the 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 in 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 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 Money to pay for your 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 - items in section 1 of the balance sheet asset - 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 liabilities - these include accounts payable: P 1 \u003d line 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:
A1 P1, A2 P2, A3 P3, A4 P4.
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 absolute liquidity:
A1 P1, A2 P2, A3 P3, A4 P4.
This state is characterized by the absence of the company'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:
Availability of sufficient funds in the current account;
No 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 for the insolvency of an 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 (1.1):
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 the "critical assessment" ratio, shows how much the company's liquid assets cover its short-term debt. Quick liquidity ratio is determined by the formula (1.2):
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, that is, 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 valuable papers ah, 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. Absolute liquidity ratio is calculated by formula (1.3):
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.
A financially stable business entity is one 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.
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:
The economic potential of the enterprise is growing;
The volume of sales is growing at a faster rate;
Profits are growing 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.
Svetlana Belova
Sooner or later, all enterprises face the question: “Should we look for investments on the side?”. What if they manage to get into their networks a kind, generous, ideologically close and generally likeable investor ... Timid voices protest, justifying themselves by the desire to maintain complete independence and their own pride, the majority relishes the upcoming benefits:
1. "One capital is good, but two is better."
Increasing your own capital is also useful in the field of production:
To maintain the existing market share;
To ensure the development of the company's activities;
To develop and implement new projects.
and in the field of financing:
To replace the method of financing current activities (lending is replaced by own funds);
If there is a high proportion of equity in the balance sheet, it is easier for an enterprise to attract resources in the form of loans from banks, loans from other partners, etc.
2. "What is demanded, what is the price."
I would like to keep up with others and maintain the price (or price fluctuations J) of my own shares at the level that we ourselves need:
To make a profit by trading in their own shares, such an opportunity really exists for large issuers;
To save existing investors and their further "promotion";
To expand the circle of potential investors, including small investors;
To enable management or "their" investors to buy back securities at the lowest price.
3. "Let's look for a prince, who would rule over us and judge by right."
It often happens that a strategic investor is needed who could establish management at the enterprise and restore its position in the market.
4. "St. Bartholomew's Night".
Sometimes the purpose of attracting investment is to redistribute power in the company, achieved through additional emission, the bulk of which is acquired by an investor aimed at seizing power.
5. "From the fire to the frying pan."
It also happens vice versa. In a period of instability and struggle for power, timely attraction of investments can be a chance to maintain and strengthen control over the enterprise.
And in general, it’s not in vain that they say: “Do not postpone work for Saturday, but marry in old age.”
Girlish beauty - long braid
So, having decided for one reason or another to seek investment, the management of the enterprise enters the capital market and discovers that the number of investors on it is clearly less than the number of fellow applicants. In addition, most of the interactions between investors and issuers are carried out through the direct acquisition of a block of shares of an enterprise (moreover, not just a block, but a controlling one). Venture financing and project investment, alas, are much less common.
Consumers of investments desperately compete among themselves for the most attractive sources of financing (“the heart is not a tablecloth, you cannot spread it in front of everyone”). Note that there is also competition between investors, caused by their desire to finance companies with the least risk and the highest profit for themselves, as a result of which all the "grooms" huddle around a couple of "brides", ignoring the rest. The question involuntarily arises: “Is our enterprise worse?”
In a developed economy, a natural indicator of the investment attractiveness of a company is the market value of its shares. In the Russian economy, the market value depends on anything - on the expectations of brokers, on the dynamics of the overseas Dow Jones, on transactions conducted by companies that are politically close to the issuers, etc., but not always on the financial and production success of the producers themselves.
In recent years, the practice of assessing the investment attractiveness of Russian companies by the following parameters has become established:
1. Development potential.
2. Financial condition.
4. Manageability.
5. Intangible assets.
6. Political and macroeconomic environment.
In addition to factors directly related to the activities of the enterprise, investors also evaluate the investment attractiveness of the securities themselves.
The conclusion suggests itself that before the bride, it is necessary to carefully restore beauty and correctly select a dowry. Alexander the Great (according to Pavel Taranov) said: “How to become the most beloved? “To be the most powerful and at the same time fearless.”
1. Development potential.
The most important parameter for making a decision on investing in a particular enterprise is the presence of a clearly formulated and detailed development strategy. This factor is especially significant for enterprises with a long production cycle and low turnover of funds. When developing strategic plans, it is dangerous to go to extremes: to consider the future with "unrelieved optimism" or to allow imagination to triumph over reason.
Enterprise competitiveness assessment and marketing situational analysis.
Development and promotion of the mission.
Development of corporate strategy.
Development of a marketing strategy.
Development of functional strategies.
Building an optimal business model.
Development of a diversification program and the formation of a new business.
2. Financial condition.
Investors pay perhaps the greatest attention to the financial position of the enterprise, although the results obtained can often have a different meaning depending on the volume and term of the investment. Wealthy brides are often capricious in family life and, as a rule, they have a horde of poor relatives.
Usually, a standard assessment of the financial condition and analysis of the coefficients is carried out:
liquidity;
Financial stability and creditworthiness;
profitability and turnover;
Tension obligations of the enterprise.
However, even an excellent assessment of the financial condition is only the basis for the subsequent study of all other factors affecting investment attractiveness.
Common measures to improve the financial situation and the form of its presentation to the investor:
Development of a program to control cash receipts and expenditures (operational "pulling" of the balance sheet).
Development of a debt restructuring program.
Implementation of international accounting standards.
Implementation of budget management and management accounting.
3. Production base and human resources.
The state of the production potential of an enterprise has a direct impact on its investment creditworthiness, which, however, is rarely taken into account by investors.
It is quite easy to quantify the amount of capital in cash for any enterprise. But there is another part that cannot be reliably expressed in monetary terms. This part of the production potential includes: the personnel component, the level of labor organization and the level of production organization. This part cannot be rigorously quantified, but without it, the production potential of the enterprise practically does not exist, since fixed assets and intangible assets cannot work by themselves.
To optimize the production base and increase the return on human resources, we can offer:
Optimization of logistics processes in the organization.
Reengineering or improvement of business processes in an organization http://www.ftk.ru/consulting/mailing/13.htm .
Development of an effective system of personnel motivation and compensation (remuneration).
Setting up a personnel development system.
4. Manageability.
When analyzing the management system, investors, as a rule, carefully study the macro level of enterprise management - from the presence of strategic management to the quality of documentation development.
Recently, compliance of enterprise management with international standards has acquired particular importance. The quality management system ISO 9000 is taken as a standard. This is due to the fact that in the 2000 version, the quality management system is considered as an equivalent of the overall manageability of the enterprise and the emphasis of certification has been significantly shifted from quality checks of semi-finished products and finished products to the quality of setting enterprise management processes.
In addition, an important aspect for the investor is the reputation of the current owners in society and in the market. The nature of ownership, that is, who owns the controlling stake and large stakes, is essential not only for the current activities of the enterprise, but also for its successful development.
To improve the enterprise management system, it is useful:
Evaluate the efficiency and reorganize the functional divisions of the company.
Optimize linear - functional control system.
Implement project management.
Select and implement a comprehensive integrated enterprise resource management system.
Implement ISO 9000:2000 quality management system.
5. Increasing the role of intangible assets.
After stating the fact of the transition to a post-industrial society, various methods of assessing intangible assets began to be actively added to the traditional methods of assessing enterprises. Potential investors, first of all, pay attention to the presence and popularity of the trademark and brands, pay great attention to the overall image of the enterprise, welcome the presence of intellectual property and creative innovation groups. The mischievous adage "what's in my name, you estimate the volume of the chest" is no longer valid.
In any kind of business, decisions on investing capital in a particular project are made in most cases not on some kind of intuition or intuition, but on the basis of quite reasonable and logical conclusions.
It is natural to assume that the basis of such investment decisions is built on a certain strategy, one of the main parts of which is what is called the attractiveness of an asset in order to invest capital there.
It should be noted, however, that not always the factors of investment attractiveness of an enterprise are a priority in choosing a portfolio option for investing assets, since there are diverse motives that guide an investor or his goal-setting system. For example, an investment project that is profitable from the point of view of economic efficiency may not comply with the principles of the investor himself for various reasons (environmental, humanitarian or social).
This article will talk about both the very concept of the investment attractiveness of a company, and what ways to increase the investment attractiveness of an enterprise have been developed by modern business practice, and how all this can be used in real business.
In determining the investment attractiveness of a company, a multi-factor assessment model is based on several fundamental principles, presented in the diagram below:
As can be seen from this diagram, first of all, the characteristic of the investment attractiveness of an enterprise is based on the following points:
- Financial indicators. The financial and economic criteria for the investment attractiveness of an enterprise is the ability to generate a positive liquidity flow over a given period of time. This includes indicators such as:
- Liquidity- the demand for the company's assets in the market, for example, its shares or debt instruments
- Solvency- the level of capital adequacy of the enterprise for the calculation of long-term or short-term borrowings
- Financial stability– the ability of the existing business model to withstand adverse market changes, such as a seasonal decrease in consumer demand for agricultural enterprises.
- Business activity— a set of measures taken by the company in order to stay on the market, marketing policy, tactics and strategy to fight competitors
- Production potential. Managing the investment attractiveness of an enterprise is not possible without relying on modern production technologies and their constant updating. Here, factors such as:
- Investment policy directly related to the renewal of the means of production, constant monitoring of innovations in the economic sector and the use of the most advanced achievements in this area
- Improving the technologies themselves for using the means of production within the company, optimizing the use of intellectual and labor resources
- Management quality(cm. ). One of the fundamental factors, without which the management of the investment attractiveness of the enterprise is impossible. This factor consists of such important elements as:
- The general ability of the company's management to make correct decisions in market conditions
- Relations with counterparties in the market, the practice of doing business with them
- The reputation of the company in the market, the decision-making system in the company in relation to customers and partners
- The brand of the company, the value of "goodwill" and the degree of trust both on the part of customers and, for example, creditors, counterparties or partners
- Market stability. This group includes criteria for the investment attractiveness of an enterprise, which determine the ability of a business to occupy a certain market position in accordance with its development strategy. This can include indicators such as:
- Market conditions - market situation, supply and demand factors, elasticity of demand for products, macroeconomic situation
- The life cycle of a company's product or service, how much will be in demand what the business produces in the long term.
It is natural to assume that the factors affecting the investment attractiveness of an enterprise are not limited to those listed above. In many ways, everything depends on the market and the type of business.
But in any case, an idea of what moments have a primary impact on the formation of the investment attractiveness of an enterprise can help find the right ways to increase the investment attractiveness of enterprises.
Ways to increase the investment attractiveness of the enterprise
At the moment, there are so many different types of business, markets and types of management that it is not possible to offer a universal universal method that could definitely increase the attractiveness of a business for investors.
However, in order to have an idea of the main directions of investment policy, several important concepts can be given:
- the funds invested in the enterprise should bring it to a qualitatively new level in terms of production volumes, technologies, product quality, etc.;
- quick payback of invested funds is a relative concept, but for most investors working, for example, in emerging markets, this matters
- high liquidity of the company's assets - in this category of methods, it should be noted, first of all, such instruments as the quoted shares on the stock exchange, demand, or, for example, the cost of franchise agreements, etc.;
- the presence of conditions for the development of the enterprise - includes a wide range of measures of the company's investment policy, ranging from methods of intra-corporate management to public relations in the form of government bodies or public organizations.
Rating of enterprises by investment attractiveness
The rating assessment of the enterprise's activity is largely related to the general level of investment attractiveness of the country or region. This, of course, looks logically correct, since it is difficult to imagine that investors would invest money even in a very profitable business, for example, with not guaranteed property rights?
In the generally accepted world practice, it is customary to use special methods of rating agencies (S&P, Fitch, etc.), which include a set of indicators of the investment attractiveness of an enterprise.
In addition to this, many investors, when making decisions about investing in a particular business, track the investment ratings of entire countries, developed by many reputable international agencies or research companies. For example, the annual rating of investment attractiveness of countries according to the International Business Compass.
In total, 174 countries are represented in the BDO International Business Compass ranking. The leader of the rating is Switzerland. Followed by: Singapore, Hong Kong, Norway, Denmark, the Netherlands, Canada, UK, Sweden and New Zealand. Germany is on the 11th line of the ranking, the USA -14. Investment attractiveness Belarus improved in 2015: the country moved from 115th to 85th position in the ranking over the year.
The last place in the rating of investment attractiveness is occupied by Sudan. The study website reports that the attractiveness of a country was determined by the level of its development and the combination of economic, political, legal and socio-cultural factors. The entire rating can be found at bdo-ibc.com.
Investment attractiveness is not only a financial and economic indicator, but a model of quantitative and qualitative indicators - assessments of the external environment (political, economic, social, legal) and internal positioning of an object in the external environment, a qualitative assessment of its financial and technical potential, which allows varying the final result.
In modern economic literature, there is practically no clarity in determining the essence of investment attractiveness and the correct system for its assessment. So, Glazunov V.I. argues that the assessment of investment attractiveness should answer the question of where, when and how much resources an investor can direct in the process of investing. Rusak N.A. and Rusak V.A. reduce the definition of the investment attractiveness of an object mainly to heuristic methods related to the ranking of the objects under study based on the assessment of specialists (experts). Hence, investment attractiveness concerns the comparison of several objects in order to determine the best, worst, average.
Many experts equate investment attractiveness with evaluating the effectiveness of investment projects.
The investment attractiveness of the enterprise is a certain set of characteristics of its production, as well as commercial, financial, to some extent managerial activities and features of a particular investment climate, the results of which indicate the expediency and necessity of investing in it. As a rule, the investment-attractive object in which investments are made wins.
So, the primary task, the fulfillment of which predetermines success in this very difficult competition, is the maximum qualitative increase in investment attractiveness.
The first step in solving this problem will be to determine the necessary parameters of the existing level of investment attractiveness within the framework of a particular object. That is, there is a need for a qualitative and qualified assessment of multi-level investment attractiveness, namely: international, domestic, sectoral, intersectoral, intrasectoral, specific enterprise, project.
The main objectives of assessing investment attractiveness are:
Determination of the current state of the enterprise and prospects for its development;
Development of measures to significantly increase investment attractiveness;
Attracting investments within the framework of the relevant investment attractiveness and volumes of obtaining an integrated approach for a positive effect from the development of attracted capital.
The final stage in the process of studying the investment market is a qualitative analysis and an objective assessment of investment attractiveness for individual companies and firms considered as potential investment objects.
Such a range of assessments is carried out by the investor when determining the need and feasibility of capital investments in the process of expansion and technical re-equipment at existing enterprises; selection for acquisition of alternative objects of privatization; as well as when buying shares of individual companies. But every business entity must show its capabilities to attract foreign investment. Therefore, the assessment of investment attractiveness is analyzed in external and internal financial analysis.
Analysis of the assessment of investment attractiveness
Western scientists and economists have determined that in order to assess the investment attractiveness of an enterprise as an investment object, the most important and priority is a complete analysis of the following vital aspects of its activities:
1. Analysis of asset turnover. The effectiveness of the start of investment is largely determined by the fact how quickly the invested funds manage to turn around in the course of a particular enterprise.
2. Analysis of return on capital. One of the main goals at the time of investment is the mandatory provision of high profits in the process of using the invested material resources. But in modern conditions, enterprises can largely manage profitability indicators (due to depreciation policy, tax planning efficiency, etc.), and in the context of the analysis process, it is possible to quite fully explore the potential for its formation in comparison with the initially invested capital.
3. Analysis of financial stability. Such an analysis allows assessing the investment risk associated with the structural formation of investment resources, as well as identifying the optimal financing of current economic activities.
4. Analysis of liquidity of assets. Assessing the liquidity of assets makes it possible to determine the ability of an enterprise to pay its short-term obligations, to prevent the possibility of bankruptcy due to the rapid sale of certain types of assets. In other words, the state of assets characterizes the level of existing investment risks within the short term. Moreover, the assessment of the investment attractiveness of an enterprise according to the indicated indicators is carried out taking into account the stages of its life cycle, since at different stages the values of the same indicators have different values for the enterprise and its investors.
In today's world, businesses operate in a tough competitive space. For sustainable development, an enterprise needs to constantly develop, quickly adapt to changing environmental conditions, offering the market a modern, high-quality product that satisfies the consumer. The constant development of the organization requires regular investments both in fixed assets and scientific and technical developments, as well as for other purposes aimed at obtaining a positive effect. To attract these investments, the company needs to monitor investment attractiveness.
The investment attractiveness of an enterprise is a complex indicator characterizing the expediency of investing in this enterprise. The investment attractiveness of an enterprise depends on many factors such as the political and economic situation in the country, region, the perfection of the legislative and judicial authorities, the level of corruption in the region, the economic situation in the industry, staff qualifications, financial performance, etc. .
In recent years, quite a lot of works by foreign authors have appeared on the issues of assessing the attractiveness of investment, including Van Horn, Behrens V, Birman G., Schmidt S., Sharp U., Norcott D., Havranek P. However, the conditions and specifics of the development of the Ukrainian investment market do not yet allow using foreign experience in investment management with sufficient efficiency.
It should be noted a large number of works by Ukrainian and Russian authors on issues and problems of investment management, among the most famous are Blank I.A., Idrisov A.B., Kreinina M.N., Melkumov Y.S., Peresada A.A. , Savchuk V.P. and others . However, they often largely use foreign approaches and methods without proper adaptation to the conditions of the domestic investment market, they lack a sufficient research base and practical experience of individual companies and firms in the investment field. Insufficient attention is paid in publications to the issues and problems of real investment, which, as we have already noted, in modern conditions forms the basis of the investment activity of most domestic investors.
Currently, enterprises use a variety of tools to attract funding. The most common ways to attract investments are:
Loans in credit institutions;
Attracting investments in the stock market: issuing bonds; conducting IPO and SPO;
Attracting a strategic investor.
The first option is the easiest, but at the same time one of the most expensive. In this case, raising funds by issuing a bank loan, the main loan conditions (volume, term, interest rate, etc.) are determined by the lender, that is, the bank, based on the credit policy established in this particular bank. Therefore, such financing is provided only to companies that have confirmed their solvency and provided the necessary collateral, the value of which is greater than the loan. In case of failure of an innovative project, the company returns the loan at the expense of its own funds, authorized capital, and the sale of fixed assets.
Attracting investments in the stock market and searching for a strategic investor require an enterprise to open reporting, control over financial flows, and business transparency. The higher the investment attractiveness of the enterprise, the more likely it is to receive investments.
Each investor pursues his goals by investing in the enterprise. Depending on the objectives of investors can be divided into two groups: financial and strategic.
Financial Investor:
Strives to maximize the value of the company, has only a financial interest - to get the greatest profit, mainly at the time of exit from the project;
Does not seek to acquire a controlling stake;
Does not seek to change the management of the company.
In Ukraine, financial investors are represented by investment companies and funds, venture capital funds. Most of the transactions of such investors take place in the secondary market and do not directly bring additional investments to the enterprise, but the purchase of the company's securities leads to an increase in the company's market capitalization. These investors make a profit from dividends or coupons paid by the company, and from the appreciation of the company's securities.
Strategic investor:
Strives to obtain additional benefits for its core business;
Strives for complete control, sometimes at the cost of destroying the company;
Actively participates in the management of the company;
Mainly seeks to invest in companies from related industries;
Takes "participation" in investing, often not limited to specific terms.
In Ukraine, the specifics of strategic investment lies in the fact that the investor seeks to obtain full control over the financed business. Usually, the strategic investor is a company whose activities are related to the business of the acquired company - investors.
The entire analysis of the IPP can be broken down into the following components:
1) analysis of potential profit - the study of alternative investment options, comparison of profitability and risk level;
2) financial analysis - the study of the financial stability of the enterprise; forecasting the development of the enterprise based on available data;
3) technological analysis - the study of technical and economic alternatives to the project, various options for using available technologies; search for the optimal technological solution for this investment project;
4) managerial analysis - assessment of the organizational and administrative policy of the enterprise, as well as the development of recommendations regarding the organizational structure, organization of activities, recruitment and training of personnel;
5) environmental analysis - assessment of potential damage to the environment by the project and determination of the necessary measures to mitigate and prevent possible consequences.
Thus, if an enterprise needs to attract investments, management must form a clear program of measures to increase investment attractiveness. Almost any line of business in our time is characterized by a high level of competition. Attracting investment in a company gives it additional competitive advantages and is often the most powerful means of growth.
Consequently, only an effectively operating and promising investment project is a potential object for investment and a source of profit for the investor.
Literature
1) Tereshchenko O.O. Financial reorganization and bankruptcy of enterprises: Navch. helper. – K.: KNEU, 2000.- 412 p.
2) Investment management: In 2 volumes. V.1. / V.V. Sheremet, V.M. Pavlyuchenko, V.D. Shapiro and others - M .: Higher School, 2008. - 416 p.
3) Krylov E. I., Vlasova V. M., Egorova M. G., Zhuravkova I. V. Analysis of the financial condition and investment attractiveness of the enterprise: Proc. manual for universities - M. : Finance and statistics, 2003. - 190 p.
