Investment Process
The process of decision on project investments is relatively fast in Expandia, provided all necessary information is available. In a relevant case, the project can be approved and the financing provided within 1 month since the applicant offered the basic information.An analysis of the business plan is the most important ground for our evaluation of the investment opportunity.
Expandia usually realizes the investment itself by means of its subsidiary companies, or purpose-founded companies in case of need.
The business plan should contain:
- basic principles of the enterprise's economical functioning
- detailed description of products or services and their comparative advantages
- information on partners or managers of the project (the company), including a description of their activities up to now
- evaluation of the market situation, level of competition, opportunities and threats
- information of the project's history up to now, its financial situation, commitments and outstanding debts
- financial plans of the project for 4-5 years (balance sheet, profit and loss account, cash flow statement
The business plan, together with meetings with the project's authors, is a key to the decision about the investment.
If investments in current companies are considered, due diligence is a usual part of the decision process.
Project management philosophy
Shareholders' most important task, in our opinion, is to find, stabilize and highly motivate a first-class managing team, to create and to approve a long-term strategy and tools to measure the efficiency of the company and its individual elements. Because statutory bodies are responsible for fulfilling this task, Expandia insists on the presence of its representatives in the statutory bodies. In unique cases, namely before capital and debt financing by Expandia are significantly repaid, we may temporarily request a majority representation in the statutory bodies.
