Valuation of investment projects
Investment project valuation is the process of analysing the potential profitability and risks of a specific investment proposal or project to support informed investment decisions. This involves analysing such aspects as the business model, financial performance, market environment, competitiveness, and potential risks, along with strategies to manage them.
Investment project valuation enables clients to:
- Make informed decisions about investing in specific projects based on their potential profitability.
- Identify and assess risks associated with project implementation and develop strategies to manage or mitigate them.
- Determine which projects are in line with the company’s development strategy and which can bring the highest added value.
Investment project valuation includes the following stages:
- Analysis of objectives and requirements. The initial stage involves defining investment objectives and project criteria, such as financial expectations, payback period, risk level, etc.
- Opportunity identification. Investment opportunities that meet the investor’s objectives and requirements are screened and analysed.
- Identification of available assets for project implementation. An analysis is made of existing investor assets (e.g., land plots, patents, licenses, machinery, equipment, etc.) that can be used for the investment project. Their availability is taken into account when calculating project efficiency.
- Data collection and analysis. Consultants gather project data, including financial forecasts, market research, technical specifications, and other critical project data necessary for analysis.
- Construction review (if required). Evaluating CAPEX and construction timelines.
- Financial analysis. An assessment of project viability is performed. This includes using metrics like NPV (net present value), IRR (internal rate of return), payback period and other financial metrics.
- Budgetary effect assessment (if required). The consult evaluates the project’s budgetary effectiveness. The contribution to federal, regional, local budgets, as well as social funds, via taxes and other payments is determined.
- Risk assessment. Project risks related to project implementation are identified and analysed and risk mitigation strategies are developed. Scenario and sensitivity analysis is performed. Real options or other probability-based methods may be applied.
- Non-financial evaluation. Non-financial aspects of project are looked into, such as technical feasibility, social impact, etc.
Upon completion of investment project valuation, the client receives:
- Business plan / feasibility study / investment project presentation / valuation report depending on the requirements of the report’s recipients: investors, banks, state authorities granting benefits, etc.
- Confidence in the project’s effectiveness for all stakeholders.
Our advantages
Expertise
FBK provides clients with comprehensive analytical and advisory solutions for data-driven investment decisions.
Expert Team
Each project is handled by professionals with an impeccable reputation and deep expertise in investment and risk management.
Flexible Work Format
FBK values clients’ time, offering offline, online, or hybrid collaboration models.
Key Persons
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