Investment Studies
An investment study essentially has the same purpose as a business plan, which is to prove the profitability and feasibility of a planned investment. In addition to private entrepreneurs, investment studies are also prepared for public bodies whose purpose is not to make a profit.
Higher value investments
In terms of content, it has other elements in addition to the elements contained in a business plan and is more comprehensive than a business plan. It is mainly prepared for investments of higher value (according to HBOR recommendations for investments of a value greater than 700,000.00 kuna).
According to HBOR's recommendation, the investment study includes:
• Information about the entrepreneur – investor
• Investor’s business scope
• Investor’s existing assets
• Analysis of previous financial operations
• Assessment of investor’s development opportunities
• Market analysis
Purchase market
Sales market
Summary of market analysis and estimate of revenue generation
• Dynamics and structure of employees
Analysis of required personnel
Calculation of annual gross salaries
• Technical elements of investment
Description of technical and technological process
Consumption of raw materials, materials and energy
Technical structure of investment
Characteristics of the building (business premises)
• Location
• Environmental protection
• Dynamics of investment realization
• Economic and financial analysis
Investment in fixed assets
Investment in working capital
Structure of investment in fixed and working capital
Sources of financing and credit terms
Sources of financing
Calculation of credit obligations
Depreciation calculation
Cost calculation and price calculation
Profit and loss account projection
Cash flow
Economic flow
Balance sheet projection
• Economic and market assessment
Static assessment of investment project efficiency
Dynamic assessment of the project
Payback period method
Net present value method
Relative present value method
Internal rate of return method
• Sensitivity analysis
• Final project assessment