In a rapidly changing global environment, investment activity contributes to maintaining a market position and expanding business.
Long-term investment planning remains an integral parts of development strategy of large companies. Also, Long-term investment planning is one of the foundations of successful commercial activities of large businesses in the field of energy, mining, oil and gas, heavy industry, infrastructure, etc.
Havelet finance Limited is associated with a multidisciplinary team of experts from various fields to provide clients with a comprehensive services and support in the implementation of large investment projects around the world.
We offer the following;
•Long-term lending for large companies.
•Project finance instruments (PF).
•Investment engineering and consulting.
Together with the mandate of high net worth individuals/investors under our trustees, we are also ready to help companies with the construction of capital-intensive facilities under an EPC contract (general contractor).
Our projects are successfully operating in Europe, Asia, Middle East, Australia Africa and America. We are available to read your project plan and to conferred funding following our due diligence. Give us a trial.
The role of long-term investment planning in business
The priority goal of each business entity is to maximize the income of the owners, which should result in an increase in the market value of the company.
Achieving success in this context requires a constant search for the best ways to increase the accumulated capital and improve ROI. Every company needs to invest, but in a saturated market and fierce competition, choosing the right investment concept is not an easy task.
Where is the best place to invest capital?
What types of investments can bring the company the most income?
How much money should be invested to achieve the strategic goals of the business?
Long-term investment planning contributes to the achievement of the following goals:
•Maintaining / strengthening the company’s position in the market by introducing new products and technologies, expanding the range of activities and searching for new clients.
•Increasing profits, which allows the company to achieve the required level of return on invested capital, as well as pay off the debt that has arisen.
•Accumulation of financial resources and increase in the market value of the enterprise. Strategic goals, understood in this way, can be realized mainly through investment. Investing is the only way to continually expand and increase the profitability and value of a business.
Investment should be understood as an economic process that is initiated by making an investment decision. This means capital expenditures incurred on various kinds of projects aimed at achieving specific results. The effects of investment activity include increased profits / cash flows, expansion of production, upgrading of technology, increase in market share, increase in company value, improved competitiveness and other effects. The scale of expenses within the framework of long-term investment projects is much greater than in the day-to-day operations.
Therefore, it is important to properly prepare for investments, study the prospects of a particular project and possible alternatives, assess the risk of failure and establish a link between the project and the overall business strategy. Investments can be classified according to various criteria. In practice, two types of investments are distinguished, namely, material investments and financial investments, which represent two different sides of a single approach to a company’s development strategy. Material investments reflect strategies focused on expanding assets, that is, increasing the production / commercial potential of the company, its resources, market share. They can be made through the use of specific market opportunities such as the purchase of a share in an existing company, the acquisition of another company, construction, etc. Material (tangible) investment always refers to a company’s tangible assets, i.e. equipment, land, buildings, vehicles, and so on. Investment experts single out the so-called intangible investments, which determine the size and structure of the intangible and legal assets of an enterprise. This group includes any investment in training, improving the organizational structure, patents, licenses.
The second type is financial investment, including the use of company resources to purchase bonds, stocks, and other securities. This is another aspect of the long-term investment strategy, which is necessarily present in large companies with significant financial resources and capabilities.
Stages of long-term investment planning
Planning of investment activity is based on the development of investment plans, as well as on the formation of an investment portfolio and its management.
A long-term investment plan is developed based on the concept of the company’s investment policy. This investment strategy defines the main objectives of the investment policy, taking into account the needs caused by the mission and strategic goals in the context of business development.
Long-term investment planning requires the following:
•Development of a detailed model of the future business activity of the company.
•Forecasting the investment climate and the requirements of the company’s adaptation to changes in the external environment for the implementation of investment projects.
•Forecasting the investment market situation and searching for investment opportunities.
The development of a long-term investment strategy consists of four stages.
If you need more professional information about investment engineering, contact Havelet finance Limited and schedule a consultation at a convenient time. We are ready to help your project at any stage.
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