The strategy of attracting foreign investment

мик, бизнес, инвестиции, новости, мероприятия

Why is it important to attract foreign investment?
Today, interest rates on loans due to the financial crisis and the increase in the refinancing rate have grown so much that even obtaining a loan will offset the potential profit. An increase in the loan rate leads to the fact that companies can not put the required profitability in the estimates.

Abroad, loans and loans are quite cheap. True, getting them in European countries is difficult, so many companies turn to Asian investors (China, Singapore).

For any company, attraction of foreign investments can be viewed from several positions:

Obtaining the status of an international company;
Obtaining additional funds for development;
The possibility of creating a holding structure and expanding the geography of the business;
Obtaining guarantees from foreign investors in relation to Russian creditors.
Estimation of economic indicators of the project
In most cases, investors do not need expensive reports and business plans of the company. For a potential investor it is important to understand what profit he will get when the investments pay off and bring the most tangible effect. First of all, you need to show the potential investor what investments are necessary to implement a particular project. It is usually enough to calculate the planned revenues and expenses in a five-year perspective.

мик, бизнес, инвестиции, новости, мероприятияEvaluation of strengths and weaknesses of the project
As practice shows, very often for the development of the company it is important to get access to borrowed funds, have sufficient demand and offer for goods and services. In this case, you need to submit a SWOT analysis to the investor, which involves evaluating various positive and negative points of activity.

Based on the weak and strong points, the construction company can choose one of the four areas of development:

1. The strategy of rapid growth.

2. The strategy of consolidation through mergers and acquisitions.

3. The strategy of diversification

4. Creation of a holding company.

Foreign investors are often afraid to enter into contracts with Russian companies directly in Russia and prefer to choose a different jurisdiction that will allow maximum financial security. This can be both European jurisdiction (Great Britain, Germany), and Asian direction using in the holding structure of Singapore, China.

Evaluation of the legal strategy for attracting investments

мик, бизнес, инвестиции, новости, мероприятияIt is necessary to provide the investor with legal aspects of attracting investments.

1. Sale of shares of the company. When using this strategy, it is important to understand what proportion of the company-founders are ready to sell to attract investment.

According to Art. 93 of the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code of the Russian Federation), the transfer of a share or part of the share of a company participant in the authorized capital of a limited liability company to another person is permitted on the basis of a transaction or by way of succession or on other legal grounds. It is important that all members of the society are ready to alienate a stake to a foreign investor, because they enjoy the pre-emptive right to purchase a stake or a part of the share of a company participant.

The procedure for exercising the pre-emptive right and the period during which members of the company can use this right are determined by the law on limited liability companies and the company’s charter. The company’s charter may also provide for the pre-emptive right to purchase by the company of a share or a part of the company participant’s share, unless other members of the company have exercised their pre-emptive right to purchase a share or part of a stake in the company’s share capital.

2. Attraction of loans and credits. The attraction of loans and credits allows, with the maintenance of a share of ownership of the company, to receive additional investments and open new projects and activities. The advantage of such a scheme is the possibility of maintaining control over the company, the downside is the need to pay interest.

 
In accordance with Art. 807 of the Civil Code of the Russian Federation under a loan agreement, one party (the lender) transfers to the other party (the borrower) money or other things specified by generic characteristics, and the borrower undertakes to return to the lender the same amount of money (loan amount) or an equal number of other things received by him Kind and quality.

мик, бизнес, инвестиции, новости, мероприятияThe loan agreement is considered concluded from the moment of transfer of money or other things.

From the above norms, it can be concluded that the recalculation of loan obligations denominated in foreign currency and the recognition of income and expenses in the form of exchange rate differences should be made monthly.

3. Creating a new company. Often investors propose to create a joint venture for the purposes of implementing a new investment project. The procedure for creating such an enterprise is determined by the parties. A Russian company can make R & D, its brand and property, a foreign investor – money. The creation of such a company can be shown schematically (Figure 2).

The creation of a joint venture with the participation of foreign capital allows to increase the attractiveness of the company, expand the geography of the company.

Creation and liquidation of a commercial organization

A source: http://www.cfin.ru/investor/invrel/Strategy_foreign_investments.shtml