Investment Criterions Print

The main criterion is belief of the investor that, giving money to you, he would be able to gain an increase of his capital, in other words to gain profit. It seems pretty simple, clear and self-evident. But its' not like that. You have to remember that profit of an investor is formed in a slightly different way than enterprise's or entrepreneur's profit. 

Enterprises profit is formed from selling of products, that is, difference between products prime cost and selling cost. Entrepreneur's profit is dividends which pays the enterprise annually. Whereas the investor earns from selling shares of your enterprise which you assign to him in exchange for the invested capital.

In comparison, we will use the example of product selling. An enterprise purchases raw material or a semi-finished product and manufactures a product. Then those products get sold and the enterprise receives incomes and profit. If the products do not get sold, the enterprise has losses and unsold products in a warehouse. It is the same for the investor. His invests and receives shares of the capital. Later the enterprise develops and receives enterprises and profit. If he does not sell it, he has losses and capital shares. 

Therefore an important criterion is the possibility to "go through", in other words to sell belonging to the investor enterprise's capital shares by the end of the investment term. The purchaser of shares may be any other financial or strategic investor. You also can buy these shares. There is also a possibility to "lead" the enterprise to the exchange and sell shares in a public offer to many small investors. This variant may be the most attractive because in this case you save the control over the enterprise, but the investor most definitely gets a higher price for his capital shares. 

Of course, there are also formal criterions that are stated in the documents of the investment fund and limit their activity. They define the permissible region, industries, maximal and minimal amount of an investment transaction, the stage of an enterprise and others.

In advance, investors determine the focus of the investment with the help of their experience. Those are the investment criteria which show the preference of the particular investor. Also they may be called the real criterions

However, not formal, not even real criteria in this case are not essential in this case because PriBalt Capital has a wide base of investors. This is the reason why it is possible to find an appropriate investor in almost any industry, amount and state of life of the enterprise. The most essential thing is to convince the investor that he will gain profit. 

The only limits are PriBalt Capital criterion. We work with enterprises of Central and Eastern Europe in all the industries except for alcohol, tobacco, gambling, erotic and real estate.

The most essential thing is that we are interested in big enterprises and enterprises which may get big.