Consulting and development of investment projects
Development of the investment project based on analysis of the market, the competitive environment, customer’s possibilities, assessment of risks and economic efficiency of investments includes:
1. Preparation of the proposal for product groups which it would be expedient to produce at the new factory according to the criteria of their market attractiveness as well as to the objectives of the project and the criteria of the product selection received from the customer.
2. Budgeting of the preliminary list of the technological equipment recommended for production of the proposed products. Preliminary broad budget estimates for construction / repair of the production facility for the selected products.
3. Preliminary assessment of the efficiency of the project of creating the factory based on the preliminary volume of the required investments, industry average cost effectiveness, average cost of the selected product groups on the market. Calculation of the payback period and need for credit resources based on the share of equity funds of the project shareholders.
4. Preparation / defense of the presentation for investors under the preliminary project (including defense at the bank if necessary). Making the decision about the expediency of further detailed elaboration of the investment project.
5. Upon completion of stage 2 ENGINEERING – preparation of a detailed business plan according to the international standards (the cost of item 5 is included in the cost of stage 2 ENGINEERING).
6. Building of the financial model of the factory projects:
6.1. Preparation of the sales plan
- Development of an optimal sales plan broken down by the major product groups for 5 years.
- Assessment of the necessary marketing expenses for implementation of the set sales plan.
6.2. Preparation of the production plan
- Building of the product manufacturing plan based on the sales plan
- Brief description of the production process. Calculation of the production personnel number. Calculation of the energy resources to be spent.
- Calculation of the prime cost of the products in terms of major product groups.
- Evaluation of the necessary operating capital of the factory: stocks of raw materials and finished products, settlements with suppliers and consumers.
6.3. Development of the financial plan of the project implementation. Assessment of the project resistance to the changing conditions of the internal and external environment.
- Forecasting of the cash revenue flows and flows of expenses.
- Building of the earnings guidance, balance sheet and cash flow statement.
- Assessment of the project efficiency. Calculation of the NPV, IRR and PI of the total investment costs, NPV, IRR and PI of the equity funds of the project shareholders, NPV, IRR and PI for the bank, NPV, IRR and PI for the regional and federal budget. Calculation of the period of simple and discounted payback of the project.
- Development of different scenarios of project implementation depending on different conditions of the internal and external environment.
- Assessment of effectiveness of different scenarios of project implementation. Calculation of NPV, IRR and PI.
- Assessment of the investment project resistance to the changing key parameters of the external and internal environment. Project risk assessment. Key risk factors, their qualitative assessment. Development of measures to reduce the impact of the key risk factors on the results of the project efficiency.
- Selection of the plan scenario. Formation of the plan values of the key indicators of the investment project. Selection of the variant of the investment project. Making of the investment decision.