Investment project definition from the article. Investment project: example, risks

The main definitions regarding the concept of “Investment project” are given in the Federal Law “On investment activities in the Russian Federation, carried out in the form of capital investments” dated February 25, 1999 No. 39-FZ with subsequent additions and amendments, and in cases where The law lacks the necessary definitions based on its meaning. Let us consider the basic concepts that are given in the “Recommendations”, and then we will analyze them in more detail from an applied point of view.

Project. This term can be understood in two senses:

as a set of documents containing the formulation of the goal of the upcoming activity and the definition of a set of actions aimed at achieving it,

as this set of actions itself (works, services, acquisitions, management operations and decisions) aimed at achieving the formulated goal,

those. both as documentation and as activity. In the “Recommendations for assessing the effectiveness of investment projects”, in all cases, except where otherwise specified, the term “project” is used in the second sense, in the sense of activity.

Social significance (scale) of the project is determined by the impact of the results of its implementation on at least one of the (domestic or external) markets: financial, products and services, labor, etc., as well as on the environmental and social situation.

Depending on their significance (scale), projects are divided into:

global, the implementation of which significantly affects the economic, social or environmental situation on Earth;

national economic, the implementation of which significantly affects the economic, social or environmental situation in the country, and when assessing them, one can limit ourselves to taking into account only this influence;

large-scale, the implementation of which significantly affects the economic, social or environmental situation in certain regions or sectors of the country, and when assessing them, the impact of these projects on the situation in other regions or sectors may not be taken into account;

local, the implementation of which does not have a significant impact on the economic, social and environmental situation in the region and does not change the level and structure of prices in commodity markets.

Investments- funds (cash, securities, other property, including property rights with a monetary value) invested in objects of entrepreneurial and (or) other activity in order to make a profit and (or) achieve another useful effect.

funds generated during the implementation of the project. They can be used as investments (in cases where investment continues after the funds are put into operation) and generally include profits and depreciation of production assets. The use of these funds is called self-financing project.

funds external to the project, which include:

facilities investors see below (including own funds of the operating enterprise - project participant), forming share capital project. These funds are not subject to return: the individuals and/or legal entities who provided them are co-owners of the created production assets and consumers of what is received through their use net income"

subsidies- funds provided free of charge: allocations from budgets of various levels, business support funds, charitable and other contributions from organizations of all forms of ownership and individuals, including international organizations and financial institutions;

cash borrowed funds(credits, loans) subject to repayment under predetermined conditions (repayment schedule, interest rate);

funds in the form of property provided for rent (leasing). The conditions for the return of these funds are determined by the rental agreement.

Subsidies, borrowed funds, and funds provided for rent (leasing) are not included in the share capital of the project and do not provide the right to participate in the income of the project.

Capital investments- investments in fixed capital (fixed assets), including costs for new construction, expansion, reconstruction and technical re-equipment of existing enterprises, acquisition of machinery, equipment, tools, inventory, design and survey work (R&D) and other costs.

Capital-forming investments- investments consisting of capital investments, working capital, as well as other funds necessary for the project. In the Recommendations, everywhere except Sec. P4.6 of Appendix 4, the word “investment” means “capital-forming investment”.

Investment project (IP)- justification of the economic feasibility, volume and timing of capital investments, including the necessary design and estimate documentation developed in accordance with the legislation of the Russian Federation and duly approved standards (norms and rules), as well as a description of practical actions for making investments (business plan). An investment project is always generated by some project(understood in the sense of the second definition), the rationale for the feasibility and characteristics of which it contains. In this regard, certain properties, characteristics and (or) parameters of individual entrepreneurs (duration, implementation, cash flows, etc.) in the Recommendations mean the corresponding properties, characteristics and (or) parameters the project it generates.

Efficiency of the investment project- a category reflecting the compliance of the project generating this IP with goals and interests project participants(see below). To assess the effectiveness of an IP, it is necessary to consider the project generating it over the entire period of its life cycle - from pre-project development to termination. Therefore, the term “efficiency of an investment project” (“IP efficiency”) is understood in the Recommendations as “project efficiency”. The same applies to performance indicators.

Financial feasibility of an investment project is ensuring such a structure of cash flows in which at each step of the calculation there is a sufficient amount of money to implement the project that generates this IP. The terms “financial feasibility of an investment project” (“financial feasibility of an individual entrepreneur”) and “financial feasibility of a project” in the Recommendations are used as synonyms. Similarly, we can talk about “cash flows (inflows, outflows, payments and receipts) of an individual entrepreneur,” meaning, respectively, the cash flows (inflows, outflows, payments and receipts) of a project associated with this individual entrepreneur.

Project materials- a document (system of documents) containing a description and justification of the project. This term covers both documents required for the design of capital construction projects, as well as additional materials developed by project participants during examination, preparation for implementation and during the implementation of projects. Project materials must contain the information necessary to assess the effectiveness of the IP (the composition of such information is disclosed in Section 3 and Appendix 2 of the Recommendations). It is assumed that project materials contain all the necessary information about the technical, technological and organizational characteristics of the project.

Organizational and economic mechanism for project implementation- a form of interaction between project participants, recorded in project materials (and in some cases in statutory documents) in order to ensure the feasibility of the project and the ability to measure the costs and results of each participant associated with the implementation of the project.

The organizational and economic mechanism for project implementation generally includes:

regulatory documents on the basis of which the interaction of participants is carried out;

obligations assumed by participants in connection with their joint actions to implement the project, guarantees of such obligations and sanctions for their violation;

conditions for financing investments, in particular - the main conditions of loan agreements (loan terms, interest rate, frequency of interest payments, etc.);

special conditions for the turnover of products and resources between participants (for example, the use of barter exchange, preferential prices for mutual payments, provision of trade loans, gratuitous transfer of fixed assets for permanent or temporary use, etc.);

a project implementation management system that ensures (in case of possible changes in the conditions of project implementation) proper synchronization of the activities of individual participants, protection of the interests of each of them and timely adjustment of their subsequent actions in order to successfully complete the project;

measures for mutual financial, organizational and other support (providing temporary financial assistance, loans, deferred payments, etc.), including measures of state support;

the main features of the accounting policy of each Russian participating enterprise, as well as foreign participating firms receiving income from participation in the project on Russian territory.

The need to use information about the organizational and economic mechanism for implementing a project arises primarily when assessing its commercial effectiveness (for each project participant, the most important elements of this mechanism will be those that affect its costs and income

Certain elements of the organizational and economic mechanism at the project implementation stage can be fixed and specified in the statutory documents and agreements between the participants.

Project participant- subject of investment activity for this project. The project participants include the subjects of investment activities listed in the Federal Law on Investment Activity, as well as society as a whole.

Shareholder- an investor who owns shares of the enterprise (organization) implementing the project.

Creditor(lender) - an investor providing borrowed funds for the implementation of a project. The lender can simultaneously obtain rights to a certain share of profits or manufactured products, for example, acting as a shareholder of the newly created enterprise or borrowing company.

It is recommended to assess the feasibility and effectiveness of the project taking into account factors uncertainty And risk (methods for such accounting are described in detail in Section 10 and Appendix 9 of the Recommendations).

Uncertainty- incompleteness and/or inaccuracy of information about the conditions of the project, the costs incurred and the results achieved.

Risk - uncertainty associated with the possibility of adverse situations and consequences arising during the implementation of the project. Unlike uncertainty, the concept of “risk” is more subjective - the consequences of the project, unfavorable for one of the participants, may be favorable for another.

The Recommendations discuss the impact on the implementation of IP of such elements of the economic environment as various manifestations of inflation, participation in the implementation of IP of various currencies, interest rates, and the taxation system.

Inflation (inflation) - an increase in the general (average) price level over time. It is characterized by a general inflation index - an index of changes in the general (average) price level in the country and price levels for certain types of goods, works and services, counted from the initial moment - the moment of development of project materials.

The essence of investment contains a combination of two aspects of investment activity: resource costs and results obtained.

Investments are made with the aim of obtaining a result - quantitative (income) or qualitative (for example, in the field of education - the construction of a school and an increase in the number of educated people), they are useless if they do not bring results.

For the case of making a decision at the enterprise level, costs can be classified as investment if, as a result of the decision:

the structure, composition and volume of assets of an enterprise or a company change;

the impact of the solution is generally expected over a long period of time;

As a rule, significant costs are required.

Investment theory is traditionally considered by Western economics as a central problem, solved from both micro- and macroeconomic positions.

The microeconomic theory of investment puts the process of making investment decisions at the enterprise level at the forefront, providing entrepreneurs with specific scientifically based methods for forming an optimal investment policy.

The macroeconomic theory of investment, the founder of which is D. Keynes, examines the problem of investment from the perspective of the entire economy as a whole, focusing on government investment policy, income and employment policies.

To make a long-term investment decision, you must have information that confirms two basic assumptions:

Firstly , the invested funds will be fully reimbursed;

Secondly , the profit received from this operation will be large enough to compensate for the temporary refusal to use funds, as well as the risk arising from the uncertainty of the final result.

Thus, the problem of making a decision on investment comes down to analyzing the adequacy of the plan for the expected development of events and the likely consequences of its implementation to the expected result.

In the most general sense, investment project- This is an investment of capital with the aim of subsequently generating income.

The methodological basis of project analysis is the systemic concept of “project”.

Project is a holistic object, the essence of which is multifaceted:

firstly, from the moment the project idea is conceived to the stage of its materialization in real objects (be it industrial enterprises or social infrastructure facilities engaged in the production of products or services), a certain time is required, which constitutes the life cycle of the project;

secondly, before investing money in a project, it is necessary to conduct a comprehensive examination of it to prove its feasibility and feasibility, as well as evaluate its effectiveness in technical, commercial, social, institutional, environmental, financial and economic aspects.

We have already reviewed the basic concepts that are used in the “Methodological recommendations for assessing the effectiveness of investment projects and their selection for financing” (hereinafter referred to as the Recommendations)

In the work of Shapiro V.D. ( Shapiro V.D. etc. Project management. - St. Petersburg: DvaTrI, 1996.) a project is understood as a system of goals formulated within its framework, physical objects and technological processes created or modernized for their implementation; technical and organizational documentation for them, material, financial, labor and other resources, as well as management decisions and measures for their implementation.

In another work (Investment design: a practical guide to the economic justification of investment projects/Under scientific. ed. SI. Shumilina. - M.: Finstatinform, 1995.) an investment project is understood as a comprehensive plan of activities (including capital construction, acquisition of technology, purchase of equipment, personnel training, etc.) aimed at creating a new or modernizing (expanding) existing production of goods and services in order to obtain economic benefits.

To a greater extent, the essence of project analysis corresponds to the interpretation of the project as a set of interrelated activities intended to achieve the set goals within a limited period of time and with an established budget.

Any project is implemented into a real-life external environment: at the input, the project draws resources from it to create products or provide any services, and at the output, the environment accepts the results of project activities. For the success of a project, one cannot ignore its interaction with the external environment, which is carried out through a comprehensive examination of the project - a systematic, interconnected study of the internal and external environment of the project.

So, for its implementation, every project needs resources - financial, material, labor - to carry out both the production process and the management process.

At the very early stage of working with a project, there is a need to collect the most complete information about the scope of the project, about the participants in this project, about the legal support for the normal course of the production process. At the stage of development of project documentation, this information is supplemented and becomes comprehensive, which makes it possible to predict the progress of the implementation and operation of the project with a greater degree of validity.

In most specialized literature, investment projects are classified according to the degree of commitment, urgency and degree of connectedness:

By degree of obligation :

Required. These projects are required to comply with rules or regulations. They may be intended for critical asset upgrades, to keep existing assets in working order. This type includes contract projects, i.e. designed to ensure contractual obligations, for example, investment projects for environmental protection.

Optional. This may include any optional development projects, for example, replacing broken equipment.

By urgency :

Urgent. These projects are either completely unavailable in the future or lose their attractiveness when delayed, for example, various types of acquisitions.

Deferred. Along with urgent ones, there is a fairly large range of investments that can be postponed, although their attractiveness, although changing, is quite insignificant. An example is the reactivation of shut-in wells.

By degree of connectedness :

Alternative. There are projects in connection with which the acceptance of one project excludes the acceptance of another. These projects are, as it were, competitors for the company's resources. These projects are evaluated simultaneously, but they cannot be implemented simultaneously. Examples include projects that completely exhaust the company's currently available resources: installing satellite communications in the company and drilling a new field.

Independent. Rejection or acceptance of one of these projects does not affect the decision regarding the other project; these projects can be carried out simultaneously and are evaluated independently. For example, the reconstruction of two unrelated divisions within a company.

Interconnected. The acceptance of one project depends on the acceptance of another. These projects are evaluated simultaneously with each other as a project, resulting in one decision.

But such a simplified classification system cannot describe all projects encountered in practice and cannot reflect the features of financing, their significance, the role of industry, etc.

There are many other approaches and classification features.

In the book Karavaev E.P. Industrial investment projects: theory And practice engineering ; "MRS." 2001.-299 p. The following type of classification of projects is given:

Table 3.1.

Purpose	Goals	Means of achieving	Resources and resources	Result
		goals	limitations

Industrial	New markets	Construction	Limited	Sales of products
	New products	object, release	material,	Payback
	Commercial	new product	financial,
	(usually)	tions. Implementation	labor The same	nested
		modern	tough times
		technologies,	nal framework
		equipment
Environmental	Decrease in	Construction	Limited
	loads on the surrounding	object, protection	material,	social
	living environment.	construction	financial,	and economic
	Non-profit	ny. Complex	labor	sky problems
	(usually)	activities for
		limitation
		or exclusion
		harmful emissions

Search in-	Research and	Carrying out ex-	Limited	Negative
innovative	creation of new	experiments	material,	ny or po-
	technologies and		financial,	positive
	equipment.		labor Not-	with transition
	Commercial and		strict limits	to industry
	non-profit		you time	pro-

Search engines	Discovery and use	Travel and	Limited	Negative
spatial	following but-	expeditions	material,	ny or by
	new areas in		financial,	positive
	space.		labor Og-	with transition
	Non-profit		limitation in	to development
				new areas


Architectural	Aesthetic.	Construction		Negative
construction	Development of new			ny or po-
	construction			positive
	technologies, equipment			with the implementation
	ore and ma-			in industry
	terials. Com-			lazy and
	commercial and non-			others pro-
	commercial

Humanities	Establishment and	Human	Financial.	The decision
	strengthening the	contacts. Kul-	Implicit restrictions	cial
	faith in society	tour exchanges	disdain
	ve. Non-profit

Medical and	Health protection	Creation of new	Material,	The solution is
in the field of health	of people. Fight with	drugs, me-	financial,	Ditsinsky and \|
defense	epidemics Non-	tods, technology	labor	social
	commercial	gy treatment. Or-
	(usually)	organizational
Social	Improvement	Privileges. Mero-	Legislator-	The decision
	catch life.	acceptance. Subsi-	new acts. Ma-	cial
	Non-profit		terial,
			financial

Publishing	Spreading	Print edition	Material,	The decision
	knowledge, experience.	no products	financial,
	Commercial and	or other but-	labor	economic
	non-profit			ski and technical
		information		nic


In the field of	Aesthetic,	Creation of production	Material,
	moral and	knowledge of art	financial	social.
	spiritual education	quality of various		ethical.
	education and enlightenment			aesthetic
	tion. Commerce			and social
	technical and non-commercial			political
	commercial			sky problems \|
In the field of	Perfection-	Creation of new	Material,	The decision
education	system	methods and pro-	financial,	cial
	education. By-	gram of learning.	labor
	improvement of qualification	New educational	Cyclical during
	modification and re-	establishments. Pro-
	Preparation.	conducting a seminar
	Commercial and	ditch, symposium
	non-profit	mov, etc.

The following table shows the universal classification of investment projects

Table 3.2.

SIGNS OF CLASSIFICATION	TYPES OF INVESTMENT PROJECTS
Functional focus	Development; rehabilitation
Implementation period	Short term; mid-term; long-term
Investment goals	Ensuring: increasing production volumes; expansion (updating) of the assortment; improving product quality; cost reduction; aimed at solving social, environmental and other problems
Amount of resources needed	Small; average; large; megaprojects
Level of mutual influence	Alternative; independent; interdependent; complementary
Level of urgency	Urgent; deferred
Mandatory	Mandatory; optional
Proposed financing scheme	Funded from internal sources; financed through corporatization; financed by credit; with mixed forms of financing
Degree of influence on the external environment	Global; large scale; regional scale; urban (intra-industry) scale
Field of activity	Social; economic; organizational; technical; mixed
Complexity	Simple; complex; very complex
Purpose	For industrial purposes; innovative
	Internal; external
Type of expected income	Cost reduction; expansion income; entering new markets; expansion into new business; risk reduction; social effect
Cash flow type	Ordinary; extraordinary
Risk attitude	Risky; risk-free
Parent organization level	International; federal; regional; corporate
Industry affiliation	Intra-industry; intersectoral
Availability of a prototype	Standard; using standard solutions; original

Classification of investment projects according to I.A. Form:

By functional focus

Investment development projects

Rehabilitation investment projects

By investment goals

Investment projects that ensure an increase in product output

Investment projects that provide expansion (updating) of the product range

Investment projects that improve product quality

Investment projects that reduce production costs

Investment projects that provide solutions to social, environmental and other problems

By implementation compatibility

Investment projects independent from the implementation of other projects

Investment projects dependent on the implementation of other projects

Investment projects that exclude the implementation of other projects

By implementation time

Short-term investment projects with an implementation period of up to one year

Medium-term investment projects with a period of implementation from one to three years

Long-term investment projects with a period of implementation over three years

By volume of required investment resources

Small investment projects (up to 100 thousand US dollars)

Medium investment projects (from 100 up to 1000 thousand US dollars)

Large investment projects (over 1000 thousand US dollars)

According to the proposed financing scheme

Investment projects financed from internal sources

Investment projects financed through corporatization (initial or additional issue of shares)

Investment projects financed by credit

Investment projects with mixed forms of financing

There are other classification types of projects in the economic literature.

Thus, the complexity and size of projects and the impact of their results on the economic, social or environmental situation characterize importance projects.

Along with the indicated features of investment projects, there are other characteristics by which they stand out. Thus, the two analyzed projects are called independent projects, if the decision to invest in one of them does not affect the decision to finance the other. For example, the decision to create a center for new medical technologies should not affect the possibility of implementing a project to build an urban rehabilitation center. Moreover, the effect from the simultaneous implementation of these projects will be equal to the sum of the effects of these projects.

If two or more analyzed projects cannot be implemented simultaneously, then such projects are called alternative or mutually exclusive. Typically, such projects include the construction of large enterprises, which include separate production facilities, united by technology and organization of production, as well as transport communications and energy supply systems.

It must be said that in reality most investment projects relate to conflicting projects that is, to projects that involve different ways to achieve the same goal. Projects with different purposes, but requiring approximately the same investments for their implementation, can also be recognized as conflicting. Therefore, the investment company always chooses from the analyzed options the project that, despite all the restrictions on the invested capital, will bring it the greatest benefit.

Investment projects may also differ in their organizational, operational and time series.

Organizational framework The project is characterized by the composition of its participants. In turn, the composition of participants is determined by a large number of factors: level of specialization; the complexity of individual parts of the project; organizational structure for managing participants, project financing, etc.

Operational framework project are determined by the actions of its participants in accordance with the requirements of project documentation and adopted technology.

Time frame of the project are characterized by the period of project implementation. They are established on the basis of duration standards for objects financed by the state budget, or based on the payback period of capital investments for projects carried out at the expense of private investors.

Investment projects can also be divided into groups according to the minimum threshold rate of return. The minimum rate of return can be specified depending on the level of profitability of securities, lending rates, etc. At the same time, with an increase in investment risk, the threshold value of the rate of return increases, and the choice of a financing scheme becomes more complicated.

Along with investment projects for production purposes, they can be innovative projects, aimed at the development and creation of new effective materials, devices, equipment, machines, technologies or technological processes. The implementation of production and innovation projects are often closely related, since their effectiveness depends not only on the scientific idea, but also on its implementation.

To implement the planned programs for the country's economic growth, investment projects aimed at the following sectors are promising:

military-industrial complex;

housing construction;

light industry;

mechanical engineering;

metallurgy;

oil refining and petrochemicals;

fuel and energy complex (FEC);

food complex;

transport, communications and telecommunications;

The scale of the project in terms of its complexity and implementation costs, as well as the impact on the environment, determine the level of feasibility and possibility of its implementation in a given period of time.

The decision to form an investment project is preceded by:

assessment of the investment proposal, which justifies the idea of the project, by management bodies;

preliminary approvals with federal, regional and local authorities, selection of an enterprise (organization) capable of implementing the project by the recipient.

availability of funds.

Information considered to make an investment decision should include the following:

the goals of the project, its orientation and economic environment (taxes, government support, risk, etc.);

marketing information (sales opportunities, competitive environment, promising sales program and product range, pricing policy);

material costs (needs, availability of raw materials, prices and terms of supply of raw materials and components, auxiliary materials and energy);

placement location, taking into account labor, natural, climatic, social and other factors;

design and construction information (selection of planning and structural solutions for buildings and structures, utilities) and design information (selection of industrial production technology, specifications of standard and non-standard equipment and conditions for its manufacture and delivery, design documentation, etc.);

information on the organization and management of production (enterprise structure, form of ownership, management system, sales and distribution, etc.);

personnel (need, availability, need for training, payment terms and work schedule);

project implementation schedule (preparatory work, construction, installation and commissioning work, operation period);

volumes of financing by project implementation period;

project effectiveness assessment

The results of the preliminary analysis and assessment of the effectiveness of the investment project are used to prepare a preliminary feasibility study (PTS), and then a final feasibility study (TES).

If a company sees the feasibility of implementing a number of investment projects, distinguished by the focus of production or scale, then in these cases a preliminary assessment of the effectiveness of the project can be presented in the form of a technical and economic report (TER) or a technical and economic calculation (TEC).

In conclusion, it should be noted that the above classifications do not exclude the possibility of the existence and development of other types of investment activities. For example, there is investment in production and economic activities, that is, the use of capital as working capital or for the acquisition of fixed assets. However, for all cases, descriptions of the project idea, method of analysis and evaluation of the project's effectiveness are required.

Investment project is a plan for the implementation of a set of activities aimed at the creation, acquisition or modernization of physical facilities and technological processes, carrying out scientific developments and financial transactions. A real investment project must have a technical justification and be interconnected in terms of resources, deadlines and performers.

Each project undergoes preliminary testing experts. First of all, the project is assessed from the point of view of its feasibility both in economic and technical aspects, i.e. a preliminary feasibility study of the project (PTS) is being considered. If the preliminary assessment of the project is positive, then they move on to a more detailed study of the project. The value of pre-assessment is to promptly screen out projects with low chances of success in order to save the cost of expensive project research.

One of the important stages of project evaluation is associated with determining the investment risk of the project. Project investment risk is a complex concept that includes various types of risks. Each stage of investment is characterized by specific types of risks, which are both internal and external in nature. The overall risk assessment for the project is carried out on the basis of aggregated data for its individual stages. In specific Russian conditions, the following can be distinguished: main types of investment risks:

insolvency associated with failure of business partners to fulfill contractual obligations;
financial support of the project, associated with the untimely receipt of investment resources from individual sources, with the danger of underfunding due to the increasing cost of financing the project;
financial instability of the enterprise, caused by an imbalance in the flow of equity and borrowed capital;
tax related to possible changes in tax legislation;
inflationary, associated with a possible decrease in income in real terms;
interest rate associated with changes in the discount rate of the Central Bank of Russia and, as a consequence, changes in interest rates of commercial banks;
marketing - the risk of shortfall in investment income at the project operation stage, caused by circumstances affecting sales volume and operating costs;
criminogenic, due to the lack of proper protection of private property rights.

Comprehensive assessment of the investment project, i.e. its feasibility study (TES) is carried out in accordance with the requirements of regulations.

If we proceed from the definition that investment is a long-term investment of economic resources with the aim of creating and obtaining benefits in the future, then the main purpose of this investment is to transform the investor’s own and borrowed funds into assets that, when used, will create new liquidity. Such a definition of the concept of “investment” includes all types of investments and corresponds to the goals and objectives of investment projects.

Creation and implementation The investment project includes the following stages:

formation of an investment plan;
research of investment opportunities;
feasibility study (TES) of the project;
preparation of contract documentation;
acquisition or lease and allocation of land;
preparation of project documentation;
construction and installation works;
operation of the facility, monitoring of economic indicators. Formation investment plan (idea) provides:
selection and preliminary justification of the plan;
innovative, patent and environmental analysis of a technical solution (technical object, resource, service) provided for by the planned project;
verification of compliance with certification requirements;
preliminary approval of the investment plan with federal, regional, municipal and industry authorities;
preliminary selection of enterprises and organizations capable of implementing the project;
preparation of an information memorandum in which the subject of investment activity, i.e. enterprises and organizations making investments inform about preparations for the implementation of the investment project.

One of the stages of analysis of an investment project is pre-project research and assessment of investment opportunities (business plan). At this stage the following work is performed:

marketing research is carried out, during which it is necessary to resolve the question of how much and at what price the products envisaged for release by this project can be sold;
proposals are being prepared on the organizational and legal form of project implementation and the composition of participants;
project costs are estimated and sources and amounts of financing are determined;
the availability of raw materials and the cost of delivery of raw materials are assessed;
information is collected on legislative and regulatory acts relevant to the implementation of the project;
Preliminary assessments are being prepared for sections of the feasibility study (TES) of the project;
contract documentation for design and survey work is being prepared.

At the preliminary stage of consideration of an investment project, it is of fundamental importance assessing the viability of the project, which is understood as the result of comparing various existing project options in terms of their cost, implementation time and profitability. A project viability assessment should answer two fundamentally important questions:

1) will the investor be able to uninterruptedly provide the project with financial resources?
2) is the project able to provide a stream of income that could reimburse investors for the financial resources they invested, taking into account the risk taken?

If there are only one or several alternative project options, the so-called situation “without a project” or “without the construction of a new enterprise” is taken as the basis for comparison. In the first case, this means that the production and financial results of an existing enterprise are compared before and after reconstruction. In the second case, the hypothetical production and financial results of a new enterprise, built according to the proposed project, are compared with the indicators of an existing enterprise. After determining the viability of an investment project, it is necessary to determine project value, i.e. results after its implementation. To do this, determine the difference between the change in benefits and the change in costs as a result of its implementation.

The main project document when considering a facility construction plan is a feasibility study (Feasibility study) of the project. The feasibility study determines the main solutions: technological, space-planning, structural, environmental; the environmental, sanitary-epidemiological and operational safety of the project, its economic efficiency and social consequences are assessed.

Feasibility study contains estimate and financial documentation, including: calculation of capital costs, assessment of production costs, calculation of annual revenues from production activities (enterprises), calculation of the need for working capital, sources of project financing, estimated needs for foreign currency, selection of creditors. In addition, the feasibility study must include an assessment of the risks associated with the implementation of the project and the timing of its implementation. The feasibility study consists of following sections:

general explanatory note;
master plan and transport;
technological solutions;
management of production (enterprise) and organization of conditions and labor protection of workers and employees;
engineering equipment, networks and systems;
organization of construction;
environmental protection measures;
measures to prevent emergency situations;
estimate documentation;
assessment of investment efficiency.

The feasibility study undergoes non-departmental environmental and other types of examinations. Based on the feasibility study and expert opinions, decisions are made to invest funds in an investment project.

Simultaneously with the preparation of the feasibility study, a business plan, contract and working documentation is prepared.

Business plan- this is a detailed document that sets out the goals and objectives of the investment project, methods of its implementation and technical and economic indicators of the enterprise or project after its completion.

Contract documentation includes:

preparation of tenders and, based on their results, preparation of contract agreements;
conditions of tenders for further design and development of technical documentation.

When preparing working documentation, design and estimate documentation (working drawings) is prepared and manufacturers and suppliers of non-standard process equipment are identified.

At the final stage of the investment project, construction, installation and commissioning work is carried out, and a pilot batch of products is produced. After the construction of the facility is completed and its normal operation begins, ongoing monitoring of the functioning of the created enterprise is carried out, i.e. production and its economic indicators.

An investment project (IP) is a justification for the economic feasibility, volume and timing of capital investments, including the necessary design and estimate documentation developed in accordance with the legislation of the Russian Federation and duly approved standards (norms and rules), as well as a description of practical actions to implement the investment (business plan).

An investment project is a plan or program of activities related to the implementation of capital investments and their subsequent reimbursement and profit. The term “investment project” can be understood in two senses:

as a set of documents containing the formulation of the goal of the upcoming activity and the definition of a set of actions aimed at achieving it;

as this set of actions itself (works, services, acquisitions, management operations and decisions) aimed at achieving the formulated goal.

A correctly drawn up investment project ultimately answers the question: is it worth investing in this business at all and will it bring income that will repay all the costs of effort and money? It is very important to draw up an investment project on paper in accordance with certain requirements and carry out special calculations - this helps to see future problems in advance and understand whether they can be overcome and where you need to insure yourself in advance.

The purpose of the investment project is to help entrepreneurs and economists solve four main problems:

study the capacity and prospects of the future sales market;

estimate the costs that will be necessary for the manufacture and sale of products needed by this market, and compare them with the prices at which you can sell your goods in order to determine the potential profitability of the planned business;

discover all possible pitfalls that lie in wait for a new business;

determine those signals and those indicators on the basis of which it will be possible to regularly evaluate the activities of the enterprise.

Classification of investment projects.

When deciding on investment, it is advisable to determine where it is more profitable to invest capital: in production, securities, purchasing goods for resale, in real estate or currency.

Therefore, when investing, it is recommended to take into account the following main points, for example, capital investments with long payback periods must be financed using long-term borrowed funds. It is recommended to finance investments with a significant degree of risk using your own funds (net profit and depreciation charges). It is necessary to choose investments that ensure the investor achieves maximum (marginal) profitability. The return on investment should always be higher than the inflation index.

There are various classifications of investment projects. Depending on the characteristics underlying the classification, the following types of investment projects can be distinguished: I . In relation to each other: · independent - allowing simultaneous and separate implementation, and the characteristics of their implementation do not affect each other; · mutually exclusive, i.e. not allowing simultaneous implementation. In practice, such projects often perform the same function. Of the set of alternative projects, only one can be implemented; · complementary, the implementation of which can only occur jointly. II . By implementation time (creation and operation):

short-term (up to 3 years);

medium-term (3-5 years);

long-term (over 5 years).

Short-term projects require short deadlines for implementation. The cost of a short-term project may increase during its implementation. The customer increases the cost of the project to gain time to maintain priority in the competition in the sales market. Short-term (high-speed) projects, as a rule, are typical for enterprises with a rapidly updating range of products, during restoration work, when creating pilot plants, etc.

Long-term projects are usually projects that implement capital-intensive investments (for example, investing in the construction and reconstruction of real estate). III . By scale (most often the scale of the project is determined by the size of the investment)

small projects, the action of which is limited to the framework of one small company implementing the project. Basically, they represent plans to expand production and increase the range of products. They are distinguished by relatively short implementation times. Small projects, as a rule, do not require special elaboration of the feasibility study and related issues. At the same time, mistakes made during the formation of projects can seriously affect their effectiveness. Small projects also include the creation of social and cultural facilities.

medium projects- these are, most often, projects for reconstruction and technical re-equipment of existing production facilities. They are implemented in stages, for individual productions, in strict accordance with pre-developed schedules for the receipt of all types of resources, including financial ones;

major projects- projects of large enterprises, which are based on a progressive “new idea” of producing products necessary to meet demand in the domestic and foreign markets;

megaprojects- these are targeted investment programs containing many interrelated final projects. Such programs can be international, state and regional.

To classify a project as a small, medium or mega-project, the following indicators are used: · volume of capital investments; · labor costs; · duration of implementation; · complexity of the management system; · attracting foreign participants; · influence on the socio-economic environment of the region, etc. IV.According to the maindirections:

commercial projects, whose main goal is to make a profit;

social projects oriented, for example, to solving problems of unemployment in the region, reducing crime levels, etc.;

environmental projects, the basis of which is the improvement of the living environment;

V Depending on the degree of influence of the results of the investment project oninternal or external markets for financial, material products and services, labor, as well as environmental and social conditions :

global projects, the implementation of which significantly affects the economic, social or environmental situation on Earth;

national economic projects, the implementation of which significantly affects the economic, social or environmental situation in the country, and their assessment can be limited to taking into account only this impact;

large scale projects, the implementation of which significantly affects the economic, social or environmental situation in a particular country;

local projects, the implementation of which does not have a significant impact on the economic, social or environmental situation in certain regions and (or) cities, on the level and structure of prices in commodity markets.

VI.A feature of the investment process is its association with uncertainty, the degree of which can vary significantly, therefore, depending on the amount of risk, investment projects are divided as follows:

reliable projects, characterized by a high probability of obtaining guaranteed results (for example, projects carried out under government orders);

risky projects, which are characterized by a high degree of uncertainty of both costs and results (for example, projects related to the creation of new industries and technologies).

VII From the point of view of project participants, the most essential is to take into account the following participants:· state enterprises; · joint ventures; · foreign investors.

In practice, this classification is not exhaustive and allows for further detail.

Chapter 2. 2.1. Project performance indicators.

The following are recommended as the main indicators used to calculate the effectiveness of an investment project:

a) net income (NI);

b) net present value (NPV);

c) internal rate of return (IRR);

d) the need for additional financing (other names: PF, project cost, risk capital);

e) indices of profitability of costs and investments (IDDI and IDDI);

f) payback period (PA).

2.3.1 Net income and net present value

NPV and NPV characterize the excess of total cash receipts over total costs for a given project, respectively, without taking into account and taking into account the inequality of effects (as well as costs, results) relating to different points in time.

The difference between BH and NPV is often called the project discount.

To recognize a project as effective from the investor’s point of view, it is necessary that the NPV of the project be positive.

2.3.2 Internal rate of return

The internal rate of return (IRR) is the interest rate at which the net present value (NPV) is 0.

The economic meaning of this parameter is that it determines the upper limit of the profitability of an investment project, and, accordingly, the maximum unit costs for it: if the IRR of the project is greater than the cost of the invested capital, then the project should be accepted for consideration, otherwise it should be rejected.

2.3.3 Payback period

The payback period taking into account discounting is the duration of the period from the initial moment to the “payback moment taking into account discounting”. The payback moment, taking into account discounting, is the earliest point in time in the calculation period, after which the current NPV becomes and subsequently remains non-negative.

CO shows the period required for the income generated by the investment, taking into account discounting, to cover the costs of the investment. This indicator is determined by the sequential calculation of the NPV for each period of the project; the point at which the NPV becomes positive will be the payback point.

The logic of the CO criterion is as follows:

a) it shows the number of base periods (calculation steps) over which the original investment will be fully reimbursed by the cash inflows generated by the project;

b) it is possible to allocate a fractional part of the calculation period, if we abstract from the initial assumption that cash inflows occur only at the end of the period.

2.3.4 Need for additional funding

The DPF value shows the minimum discounted amount of external financing for the project necessary to ensure its financial feasibility.

Return indices (RI) characterize the (relative) “return of the project” on the funds invested in it. They can be calculated for both discounted and undiscounted cash flows.

The profitability index reflects the effectiveness of the investment project. If the value of the profitability index is less than or equal to 1, then the project is rejected, since it will not bring additional income to the investor. Projects with a value of this indicator greater than one are accepted for implementation.

When assessing effectiveness, the following are often used:

a) discounted cost profitability index (DCPI) - the ratio of the sum of discounted cash inflows to the sum of discounted cash outflows.

b) discounted investment return index (DIDI) - the ratio of the sum of discounted elements of cash flow from operating activities to the absolute value of the discounted sum of elements of cash flow from investment activities. The IDDI is equal to the ratio of NPV increased by one to the accumulated discounted volume of investment.

The logic of the ID criterion is as follows:

a) it characterizes income per unit of cost;

b) this criterion is most preferable when it is necessary to organize independent projects to create an optimal portfolio in case of limited total investment.

2.3.6 Return on investment

In a number of cases, the return on investment (ROI) indicator is determined, showing how many monetary units of net income will be brought, taking into account discounting, one monetary unit invested in the project:

The profitability of an investment project is the ratio of the current value of net cash flow to the amount of investment.

The profitability index is used when you need to compare several projects with different investment amounts (the NPV indicator is not suitable for this purpose, since it is absolute). The higher the profitability of an investment project, the more preferable this project is.

The concept of “investment project” is a system of measures deployed over time for a significant renewal or creation of fundamentally new individual components of the enterprise’s activities. The components of any investment project are the direct participants (individual/legal entity), organization or group of persons interested in it. The last link of this structure can relate to both the macroeconomic level and the mesolevel, as well as the microeconomic level.

From this link you can download the most complete investment project (example with calculations in Excel). The calculation results are available for testing, the formulas are “visible” (it’s easy to check which formula was used and what data it refers to).

The project needs to create a structure diagram something like this:

author of the idea;
content author;
investors;
the enterprise (group of enterprises) to which the project is directed;
consumers to whom the project was aimed.

For example, investment projects need to rank the sequence of all structural elements. This system performs the following functions:

decision support for design and selection;
optimal business development plan; creating financial plans and investment projects;
modeling the activities of enterprises of different forms and structures.

A very important integral part of an investment project is the precise determination of its duration, for example 1 year or 2-3 months. The “launch” date of the investment project is also important.

We draw up an investment project using an example

Name:	“Creation of a full production cycle livestock farm.”
Documentation:	business plan, marketing research of the agricultural market.
Project budget:	40,000 USD.
Field of activity:	Agriculture.
Sources of financing:	personal funds, credit funds.
Goal Definition:	creation of a full production cycle livestock farm on the basis of an existing agricultural enterprise.
Direction:	commercial.

If we are talking about a specific example of an investment project, then there is a detailed description of all stages of the implementation of the project plan, concept, novelty, efficiency, and ways to achieve it. It should be noted that a typical example could be a business plan for the investment project itself as a whole, or part of it. A project can include up to ten sections:

initial data,
market assessment,
financial assets
production,
human resources,
territorial location of investment objects,
project documentation,
organization and expenses,
deadlines for implementation of plans,
business performance assessment.

Example of a construction project: “Sanatorium and resort complex (SKK)”. Even such a business project, ideally planned in all respects, without an investor, remains unrealized.

Registration of the structure of an investment projecta

Another example of a formalized investment project could be the following structure:

company,
conceptual essence,
capital investment plan (technical and permitting documentation, network deployment costs, etc.),
production dates,
implementation deadlines,
sales and distribution routes, materials and components,
general costs and personnel plan,
financing.

The structure should depend directly on the specifics of the investment object, the scope of implementation, etc. These examples of investment projects do not take into account the financial side of business projects. It is important that the current financial condition determines the balance of the launch date for the project. This factor directly affects the size and direction of cash flows. In this regard, the return on investment is determined. The compiled examples must have descriptions of the volume and form of investment. A brief summary of the essence of the proposal is required. By summary we mean a detailing of the main features of the development pre-determined by the project itself. Many companies and specialists provide services for the development of investment projects or their analysis, and as a result, correction for maximum efficiency.

Who is responsible for developing the investment project?
What documents need to be developed to make it easier for the General Director to analyze investment projects?
What documents must the authors of the project submit?
What five areas should be used to analyze the effectiveness of a project?

You will also read

Who in the Mir company is involved in the development of a project related to the opening of a new store
Why, according to the CEO of S&G Partners, most investment projects end in failure

The development strategy of a large and medium-sized enterprise is usually formed from the totality of its investment projects. The General Director's task is to be able to assess their effectiveness without going into the details of financial and marketing analysis. You can do this quickly and objectively if you build a system for developing investment projects at your enterprise and appoint those responsible for this process. Then, to analyze the effectiveness of the new project, it will be enough for you to ask the subordinates responsible for its development a few questions (see. ).

Who should be entrusted with the development of an investment project?

As a rule, three people are responsible for the development of an investment project:

Head of the relevant direction or division. He is obliged to formulate the strategic goals of the project and form a project team. Sometimes this is done personally by the General Director.
Project manager. Responsible for its development process. This person must be given sufficient authority so that he can independently resolve issues of interaction between departments and require other employees to take into account the needs of the project.
Project economist. His tasks are to analyze the financial, marketing, and production aspects of the project and study prepared documents. You can appoint either a company employee (for example, a specialist in the financial or economic planning department) or a third-party consultant as a project economist.

Roles of participants in a typical investment project

Role	What is he responsible for?
Head of the working group	Compliance of the investment project with internal regulations and procedures Time frame for development and decision-making on the project Necessity and sufficiency of the requested resources
Industry specialist	Reliability of general industry and product information Reliability of analyzes and forecasts for industry development Expertise on data specific to industry, product, niche, etc. Determination of cycles of development, production, implementation, maintenance, operation (product, structure, etc.)
Investment Specialist	Reliability of calculation of investment indicators Organization of risk assessment, proposals for risk management Development of an investment model
Finance Specialist	Reliability of data on the provision of the project with financial resources, selection of the optimal form of financing Coordination of financing with the legal aspects of the project
	Compliance of the project with current legislation Optimization of taxation, minimization of tax risks
HR, PR, GR, IR managers	HR manager - reliability of data on the availability, cost, quality and quantity of human resources necessary for project execution PR manager - the need and sufficiency of PR support, assessing the impact of the project on the value of the company’s brand GR manager - reliability of data on the availability, cost, quality and quantity of GR resources necessary for project execution IR manager - the impact of a new project on existing ones, in the presence of public co-investors of the project - planning activities to manage relations with co-investors
Marketing Specialist	Together with an industry specialist - reliability of prices for materials and components, finished products, analysis (including development dynamics) of the industry (including market volume), competitors, suppliers, clients

What documents need to be approved

To make it easier for the General Director to analyze investment projects, the following documents need to be developed:

1. Methodology for evaluating an investment project. This document should contain answers to the following questions:

What should be studied especially carefully in the process of preparing a project?
What indicators do company management need to make decisions and how should they be calculated? (In financial analysis, the meaning of terms and ratios can be understood differently, but employees of the same company must work in a single coordinate system.)

2. Regulations for the preparation and acceptance of an investment project. This document contains the following information:

distribution of responsibilities between project participants;
sequence of document approval;
project deadlines;
other requirements for the organizational part of the work.

Entrust the preparation of documents to the department of the financial director; the latter must take this work under personal control. Let the direct developers be employees of the economic planning or investment department (depending on the structure of the company).

Types of investment projects

Investment projects can be divided into three categories:

Large-scale investment projects. The investment level ranges from 50 to 300 thousand US dollars. Such projects require the preparation of a detailed business plan, regardless of whether outside financing will be attracted.
Small investment projects. They are justified by simplified documents and are not submitted to the company management for consideration as separate projects (they are discussed as part of project packages). Such projects include, for example, the launch of new products, entering new markets, changes in logistics schemes.
Investment activities. Projects that do not have a revenue part, although they indirectly affect the company’s income. Their economic analysis cannot be performed in isolation from the overall activities of the company. For example, implementing an ERP system will most likely not bring direct benefits, but it will provide opportunities for growth and the implementation of many other revenue-generating projects.

A practitioner tells

Dmitry Kalaev
Deputy General Director of Naumen, Moscow

You should formalize the procedure for selecting projects. To do this, develop regulations for the preparation of an investment project and a business plan template: investment projects should be described in the same way and evaluated using a single methodology. For example, you can select projects based on the following criteria:

Compliance with the company's strategic plans. If the essence of the project coincides with strategic development plans, it should be implemented first, even if it is less profitable than other proposed projects.
Predicted profitability of the project taking into account risks. In business, high profitability is always associated with high risks, so any investment project must contain their assessment.
Resources required for implementation. This refers not only to investments, but also to the necessary production capacities and administrative efforts. Some projects can take up so much of the CEO's efforts that he has no time left for the main business.

What documents must be submitted to project participants?

The main document that is shown to a potential investor is the business plan. On average, it takes one to two months to prepare, although in complex cases the process may take longer. You should not plan for this work for less than one month. When preparing a business plan, many difficulties are always revealed, a lack of information is revealed, so it is usually impossible to reduce the time frame (see. ).

A practitioner tells

Dmitry Kalaev
Deputy General Director of Naumen, Moscow

From personal practice, I can say that it makes sense to prepare two documents: “Project Summary” and “Business Plan”.

Project Summary- a brief overview of the project on two to four pages, including the following sections: company and project team, project goal, brief description of the subject area, business idea, market condition, overview of project work, sources of financing. It is being prepared for investors.

Business plan- a more detailed document, which consists of several dozen pages and includes sections such as business goals and objectives, information about the enterprise, investment plan, investment objects and sources of financial resources, characteristics of the enterprise’s products (services), sales market analysis, marketing strategy. The business plan also contains estimated indicators of turnover, fixed and variable costs, profit and profitability of production, payback period for investments, and break-even point.

In addition, it makes sense to divide projects depending on costs and the degree of impact on the organization’s business. Naturally, a project with a budget of $5,000 should not be justified in the same way as a project with a budget of $1 million. In addition, to choose the best one, you usually have to compare projects with each other, so the documents should be prepared in the same way - create an easily repeatable process for preparing an investment project.

Business plan structure

1. Project Summary: a brief, one or two page, presentation of the main theses and key indicators of the project.

2. Information about the company: Must demonstrate the company's ability to implement projects similar to those described in the business plan.

3. Product design (description): information about the essence of the project and the characteristics of the products or services proposed for implementation.

4. Strategic plan: competitive advantages of the product, development program, long-term goals of the company within the framework of this project.

5. Marketing plan: analysis of the market, competitors’ activities, product promotion plan, sales forecasts.

6. Investments and operations: description of the stages of project implementation, as well as the composition of investment costs, organization of activities after the launch of the project.

7. Financial plan: forecast budget and calculation of all necessary indicators.

8. Risk analysis: assessment of possible threats and their impact on the results of the project, description of measures aimed at reducing risks.

A practitioner tells

Vitaly Konotop
Head of the Budgeting and Controlling Department at Mir, Moscow

In our company, by order of the General Director, the document “The process of forming and analyzing the implementation of a feasibility study for opening a retail store” was approved. The data collected on the object goes to the finance department, where the main indicators of the project are calculated. The decision (whether we take this object or not) is made by the governing body - the real estate committee. The meetings are attended by members of the board of directors, the General Director and other top managers. If the conclusion is positive, the feasibility study is once again agreed upon with the departments and an order is issued to the company to begin implementation of the project. Next, department employees formulate the budget of the investment project, which is consolidated and analyzed by the finance department.

Project effectiveness analysis

Let's say a project has been developed, and you need to make a decision about its future fate. To do this, you need to analyze the project in five areas (reports on which you should require from your subordinates).

1. Technological analysis. A study of the extent to which the proposed project launch plan can be implemented and how feasible the conditions for its functioning are. Projects most often fail not because investors misjudged market demand, but because the company is unable to launch the project as planned. The analysis of the technological side is carried out by specialists from specialized production departments, always under the control of the investment department.

2. Legal analysis. Construction, mining, pharmacology - in all these industries, legal aspects can turn out to be even more complex than the main investment part itself. Naturally, management's attention to these issues should also be increased. The company lawyer is responsible for this aspect of the work.

3. Financial and cost analysis. Conducted by the financial and economic service. Based on the project budget, a financial model is built that allows you to study it from all points of view and calculate the prospects.

4. Analysis of project effectiveness. Includes calculation of traditional project performance indicators. It is advisable to use a small list of characteristics (from two to four) that can be calculated for the vast majority of the company’s projects. Most often this list looks like this:

discounted payback period (Pay-Back Period, PBP);
net present value (NPV);
internal rate of return (Internal Rate of Return, IRR).

All of the above indicators are calculated based on the cash flow forecast within the investment project. Therefore, a correct cash flow statement for a company is extremely important. If it is difficult to do this for one reason or another, the classic indicators can be replaced with others. But the replacement is made taking into account the specific features of each project; a standard solution cannot be offered here.

In principle, this small list can be supplemented as necessary with a variety of analytical tools and indicators. However, there is usually no need for this, since investment projects, as a rule, are characterized by extreme uncertainty, which means that the ability to use financial mathematics is limited.

5. Risk analysis. It is assessed to what extent deviations in forecast data will affect the success of the project, various project implementation scenarios are studied, and possible losses of participants are analyzed. This part is prepared by the risk manager (in the absence of such a specialist in the company, entrust the risk analysis to the financial and economic service).

General Director speaks

Mikhail Kalinin
Chairman of the Board of Cost Management Group, Moscow

Marketing analysis is prepared by the marketing service. In my opinion, it is necessary to cover the following areas: market analysis, analysis of the competitive environment, development of a marketing plan for the product, quality (reliability) of marketing information.

Technical analysis is usually carried out by the company's engineering services with the participation (if necessary) of specialized specialists. Employees must assess their own technical capabilities to implement the project and indicate the advisability of attracting additional resources.

The most responsible and time-consuming analysis is carried out by the financial service. It is necessary to assess both the financial condition of your own enterprise (including an analysis of work over the previous three to five years, an analysis of the profitability of production of main types of products, a forecast of profits in future periods, including at the time of project implementation), and the project itself (to determine the investment needs of the enterprise for the project, sources of financing, predict profits and cash flows during the project implementation, evaluate performance indicators).

Analysis of the influence of external (state policy in the industry, legislative and permitting framework, etc.) and internal (management qualifications, experience, etc.) factors can be entrusted to the director of strategic development or done yourself.

The final risk analysis should be carried out by the project manager (a person with a commercial sense), who must proceed from the most pessimistic option for the project.

Cost Management Group is engaged in the creation and implementation of highly effective technologies to increase business, and manages industrial assets with a total size of more than $150 million. Operates in 12 regions of the Russian Federation. In 2003-2007, the group's managers developed and implemented 11 projects to bring industrial enterprises in the engineering, food and petrochemical industries to a qualitatively new level of development in a short time.

General Director speaks

Ella Gimelberg
General Director, Managing Partner of S&G Partners, Moscow

To assess the investment attractiveness of a project, the General Director must understand the adequacy of its marketing component (see case study: Reason for project failure). When preparing calculations, the vast majority of financiers are based not on marketing data obtained as a result of research regarding expected implementation plans, but on the technological capabilities of future production (that is, on how many products the company can produce). Having received such a report, the General Director is obliged to clearly understand the sales strategy of the project.

Keep in mind: there are markets in which 100% sales of products is not luck, but a legal requirement (for example, markets for precious metals and stones, oil and gas, other minerals, as well as scarce markets - cement, metal, wood, etc.). d.). If the project does not fall into these categories, then the General Director first of all needs to get from his subordinates a clear understanding of where and at what prices the company will sell its products, what the promising market share is, and the plans of competitors. As part of project preparation, this information is collected and analyzed by marketers.

S&G Partners was founded in 2006. Provides services in financial consulting, mergers and acquisitions (M&A), investment design, construction and financial supervision. Main clients: CJSC MFK Gras, OJSC Nechernozemagropromstroy, Deloitte & Touch, Khoory Investment (UAE).