For the companies, which solve the issue of investment attracting or selling a business, it is important to understand, by what criteria are guided the potential investors in selecting of investment object. There are different approaches, indicators, assessment system for perspective of one or another business. Among them, we highlight the criteria as follows.

  1. Payback on Investment

Placement of capital in investment attractive business areas first and foremost require payback – return of the initial investment by means of accumulation of net real cash flows received on the project.

In addition, an important factor for investments is their payback period – a term that indicates a time when income from investments exceeds the very amount of investment and the project will begin to bring net profit. The calculation of this indicator is important for investors, because it gives an opportunity to assess riskiness of the project and the time within which he will not be able to use the contributed resource.

  1. Return on Investment

The coefficient of return on assets (Return on Investment) shows how much currency units was required by the company to obtain one currency unit of profit. This figure is one of the most important indicators of competitiveness.

It is calculated by the formula:

ROI = (Profit + (Selling price – Purchase price) / Purchase price) * 100%

where: Profit – income earned during possession of the asset; Purchase price – the price at which the asset was acquired; Selling price – the price at which the asset was sold (or can be sold) on expiration of a period of asset ownership.

 Clear Development Strategy

In order to invest in a certain business, even a project with great potential requires a clearly defined development strategy. While forming investment strategy, we search and assess alternatives for investment solutions that fully meet the objective of development of the company. In addition, peculiarities of formation of the investment strategy associated with the fact that it is variable and require periodic adjustments based on environmental conditions and new opportunities for development of the company. Such a strategy has subordinated character and conforms to the objectives and implementation stages.

  1. Potential Increase in the Cost up to 100 Million Dollars.

One of the key indicators in the analysis of investment attractiveness is the profit, which is the main source of formation of financial resources and capital accumulation. The profit establishes financial and market positions of the entity, as well as it is a protective mechanism against the possibility of bankruptcy. This figure plays a quite important role in the analysis of the company’s activity and it is one of the most important criteria for investment. Investors try to work in the domestic market mainly in those areas, where concentrated the lowest risk and profit is guaranteed, as the main purpose of investment is to increase the investor’s property.

  1. Professional Team

An important factor that influences the decision on investment into an attractive business, is a formed professional team – specialists who perfectly familiar with all the nuances of this business and have a positive experience in the relevant market. These professionals, in addition to a powerful knowledge base, should strive for the best results and ensure the successful implementation of the project.