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If you want to attract investors and partners, you’ll need to demonstrate real potential for growth and convince them they are buying into a good deal with an expectation of a rich return on their investment. Developing a strategy involves simultaneously taking into account both your resources and your company’s ability to mobilize them. Marshalling internal resources requires care. You need to proceed with even greater care when working with partners: they’ll want to examine you with a finetooth comb before committing to working with you.
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The process of analyzing potential for growth |
Investors want answers to three questions:
• what’s special about the company (human resources, technology, finance, etc)?
• how does it operate?
• what is the outlook for the company?
To reply, you must identify your strengths, weaknesses and scope for action, as well as the risks that can threaten you. During our evaluation, we consult all levels of staff and perform a financial analysis so as to be able to make a precise diagnosis. We produce a detailed report with suggestions on areas for improvement. This analysis, useful in any case for establishing goals and correcting weaknesses, also shows investors how your project is aligned with the company’s environment and resources.
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Convincing potential investors of the viability of your project requires communicating precise information on available company resources and detailed scheduling.
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The ability to complete the project |
Your strengths and weaknesses dictate how you perform in your markets. Our analysis reveals those strengths and weaknesses at all levels: management, R&D, manufacturing, human resources, finance, logistics, etc. We also take into account the economic, political and legal environment.
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Potential for growth and for profitability |
Investors fix their level of investment and evaluate expected returns by estimating the value of your company. They look at company accounts from various angles (cash flow, assets, etc). Added value, more than sales, is an indicator of future growth. It is calculated as a proportion of sales or overall activity. But growth must also be profitable. EBITDA is a good measure of profitability. An investor will be reassured by a good balance between growth and profitability. An evaluation of the potential for growth is useful for companies that are either growing fast, have encountered difficulties in the past or are planning strategic changes.
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