INVESTMENT BUSINESS CONSULTING: CONTENT, TECHNOLOGIES, POTENTIAL

Author
, associate professor, Kharkiv, Pushinska, 77

In heading

 Economic theory;

Signed print

 22.11.2019

Issues number

 2019 - № 4 (39)

Page

 65-82

Type of articles

 Scientific article

Code UDK

 005.942:330.341.1

ISSN print

 2411-5584

Abstract

 Problem setting. Global transformations of the business landscape cause ongoing update tools of investment management that formulate a request for professional help.
Recent research and publication analysis. The content, and technology of investment consulting (IC) almost don’t cover in the scientific literature. The main source of information is the websites of specialized consulting companies.
Paper objective. The purpose of the article is to reveal the content of IC as a technology for improving the efficiency of investment and innovation activity of modern business structures.
Paper main body. IC is aimed at ensuring the increase of competitiveness and efficiency of economic activity of client organizations by transferring best practices, investment design technologies, and investment management into business practice. IC services are 1) development and maintenance of an investment project; 2) performance evaluation, project expertise; 3) fundraising; 4) consulting on the best ways to invest. The areas of work of investment consultants are risk minimization for project participants communication, project engineering. Due Diligesce is a complex procedure for comprehensive and multi-factorial verification of a company or project to justify investment decisions and minimize investment risks.
Fundraising in business consulting means a comprehensive service that includes a search for investors/creditors; developing a proposal that meets their selection criteria; organization of communications; engineering the financial model to the participants’ requirements. The main task of the consultant is to create mechanisms that balanced the interests of the parties for the long term. Project participants try to protect themselves from
failure as much as possible. They do it by using hybrid financing tools, which make it possible to simultaneously profit and protect the interests in case of bankruptcy of the project. Call structuring, put option, liquidation privilege, conversion loan are used in structuring the investment agreement. Professional assistance can prevent these financial instruments from being transformed into «legal mines» and to ensure optimal structuring
of the investment agreement.
Conclusions. IC as a specialized type of consulting in traditional and innovative areas of investment activities has the potential to increase the efficiency and competitiveness of business.
Short Abstract for an article
Abstract. The content of investment consulting (IC) as a technology of increasing the efficiency of the investment-innovative activity of modern business structures is revealed. Theoretical aspects of IC are specified. IC services are classified. The content of fundraising as a comprehensive IC service is considered. The potential of modern consulting technologies for protecting the interests of business project participants and the optimal structuring of investment transactions based on hybrid inancing tools has been demonstrated.

Keywords

 investment consulting, development, fundraising, investment teaser, dueiligence, hybrid financing, options, structuring an investment agreement.

Reviewer

External reviewer

Article in PDF

 65-82

Bibliography

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Code DOI

 10.31359/2411-5584-2019-39-4-65

22.11.2019