Increasing competition along with economic risks are boosting the demand for professional investment consulting services. 
 
These services are becoming increasingly important for projects initiated by both large private companies and government agencies. 
 
Investment consulting includes but is not limited to: 
 
• Comprehensive project development and support. 
• In-depth analysis and assessment of the effectiveness of a business project. 
• Capital raising and advice on capital raising tools. 
 
Each of these services affects a business’s investment activities, relying on the use of special consulting technologies that can increase project success. 
 
Implementing major projects based on intuition is no longer in line with economic realities and cannot meet the growing needs of businesses in the context of globalization and penetration into the world market. 
 
As business operations in many sectors today face increasing competition for capital, capital raising has become an important factor in investment consulting.   

​​​

Capital raising as a comprehensive service includes: 
 
• Finding potential investors and lenders. 
• Developing high-quality project presentations. 
• Effective communication with major capital providers. 
• Modeling and forecasting cash flows. 
• Financial guarantees, etc. 
 
Today, the main task of an investment advisor is to create mechanisms to ensure that the interests of project participants are met in the long term. 
 
Professional services in this context help companies prevent serious financial or reputational losses by ensuring that investment deals are fully structured and financial flows are properly managed. 
 
We are ready to provide you with advanced investment consulting services for projects in the fields of mechanical engineering, mining and mineral processing, conventional and renewable energy, oil and gas, agriculture, real estate and other areas. 

Investment Consulting Services for Medium and Large Businesses 

This type of service can be viewed from two sides, depending on the type of client and their preferences. 
 
From the point of view of companies in the real sector, investment consulting focuses on finding and attracting finances for investment projects. From the point of view of a potential investor, these services represent the search, formation and professional management of an investment portfolio that best suits the profile of a particular investor. 
 
In this section, we look at investment consulting from the perspective of a large business that needs to attract finance and manage cash flow within the framework of investment projects. 

Definition 

The expansion and increasing complexity of investment projects, the improvement of structural and project financing technologies require company managers to have a better understanding of the potential and risks of innovative financing forms, the specifics of interaction with different investors, ensuring the commercial interests of project participants, etc. In the 21st century, even large companies are often unable to independently ensure the high quality of investment processes. 
 
These companies, along with government agencies and other stakeholders, are driving the demand for consulting. 
 
In this context, investment consulting services are becoming a valuable tool for increasing the competitiveness and efficiency of companies by using advanced methods, investment design technologies, organizing and managing investment operations, cash flow management, etc. 
 
Investment consulting can be defined as the process of providing professional services/advice to a business on developing, selecting and applying the best option for a project, raising capital and achieving target financial indicators. 

Objectives and Scope of Advisory Services 

The elements of comprehensive investment advisory services can sometimes be provided to clients as separate services. 
 
In the global reality, the most demanded services are: 
 
1. Pre-investment research. 
2. Developing and evaluating investment proposals. 
3. Developing and evaluating business plans. 
4. Project cash flow modeling. 
5. Analyzing business opportunities, risks, and weaknesses. 
6. Developing financial models. 
7. Project presentation. 
 
An important role in this context is played by many related services, including approval of investment projects at the local government level, obtaining permits, developing technical documentation, etc. 
 
The goal of hiring outside experts can be to get an objective assessment of the situation, professionally address specific project issues as well as help businesses in critical situations. Some European financiers identify the so-called "resource consultants" (experts who suggest what needs to be changed in a project) and "process consultants" (experts who suggest how to change some aspects of the project and guide clients to solve problems). 
 
Analysis of the service structure of consulting companies specializing in large businesses allows us to highlight the most important areas of work of business investment consultants. 
 
Including: 
 
• Minimizing risks for project participants, including investment planning, evaluation, analysis, and support for implementation. 
 
• Ensuring effective communication, including clear dialogue between business owners and investors, as well as other sources of capital. 
 
• Technical services, including technical improvements to project components to achieve the best results for participants. 
 
Our team of experts with over 20 years of experience in the field of project financing is always ready to address any issues that arise during the investment process. 

Investment advisory needs 

In recent years, global demand for investment advisory services has increased with the price 
 
to pay is for small and medium enterprises, large enterprises, banks and government agencies. While the relative proportion of SMEs in the demand structure has increased, large and expensive projects are undoubtedly being implemented with the participation of multinational companies and governments. 
 
Services such as finding investment objects that meet certain requirements, due diligence and comprehensive assessment of the project’s effectiveness, as well as legal support, are becoming more and more relevant for investors. Project initiators of large projects are mainly interested in developing financial models/business plans, preparing project documentation for investors, finding and attracting funding sources, and identifying the most appropriate programs for using resources. 
 
Such services in the context of large investment projects are quite expensive, as they require consulting companies to use advanced techniques, experience, knowledge and business relationships. 

Classification of investment advisory services 

Leading financial experts consider investment consulting as an element of strategic business consulting. 
 
Some international companies 
 
include investment advice in the list of financial advisory services, which is reasonable. On the other hand, some consulting companies are taking business planning or financial modeling activities beyond investment advisory services. Investment advice is associated with the implementation of projects in the real sector of the economy (although this does not exclude the use of securities for financing), while stock brokerage focuses on financial investments. 

Clearly, this type of service needs additional systematization and a clearer classification, which is currently lacking. 
 
Any investment project includes a number of stages of the life cycle, including the pre-investment stage, the investment stage, the operation stage and the final liquidation stage. 

This dictates the sequence of the following actions of project participants: 
 
1. Formation of the investment intention and general concept of the project. 
2. Conducting detailed and comprehensive pre-investment analysis. 
3. Building/purchasing a facility and preparing it for operation. 
4. Operating the facility for the purpose of making a profit. 
5. Closing/liquidating the project. 
 
The characteristic features of each stage of the project cycle determine the appropriate structure of investment consulting services for businesses. 
This allows us to propose the following classification: 
 
• Investment project development (from planning to signing an investment agreement) and assisting clients at all stages. 
 
• Evaluating the effectiveness and comprehensively checking the investment project. 
 
• Optimizing financing sources and methods, raising capital in the context of selecting the best funding sources for a specific project. 
 
• Advising clients on optimal investment tools, including asset analysis for buying/selling (Due Diligence), assessing the investment attractiveness of the company, identifying priority investment areas and more. 
 
Below, we will take a closer look at each type of investment consulting service, focusing on capital raising (raising capital for projects) as the most important aspect for a business. 

Memorandum of project development and investment 

As part of raising capital to finance large projects, consulting firms can develop business strategies and plans, as well as draft investment memorandums. 
 
This activity is extremely important in the context of investor interest and awareness. 
 
Investment consulting firms provide clients with services to develop project documents according to the standards/recommendations of UNIDO, the European Bank for Reconstruction and Development or the specialized financial institution of the host country. 

Investment project development consulting services include: 
 
• Assessing the specific area and object of investment. 
• Professional financial and legal analysis of the investment project. 
• Preparing detailed analytical reports, business plans and roadmaps for clients. 
• Establishing checkpoints and intermediate indicators to track the project. 
• Presenting the project to potential participants. 
 
At the client’s request, information on alternative directions and projects can be prepared, as well as an assessment of selected performing companies responsible for implementing the project. 
 
Consulting support for a project means real-time support from professional advisors who help solve everyday business issues. 
 
This type of service helps large businesses avoid costly mistakes in the project implementation process, as well as help resolve less important tasks that clients may not always be able to allocate time and resources to. 

Project support consulting is recommended for the following clients: 
 
• Companies facing systemic investment difficulties and are unclear about the next steps in the project. 
 
• Companies that need to attract an effective external investment group to implement the project, including cash flow management. 
 
• Companies that need to attract additional funding for large projects that require significant capital and have no relevant experience. 
 
Here are the documents that must be submitted to investors to successfully implement the project. Companies specializing in investment consulting for large businesses can provide support in developing and presenting these documents. 
 
Table: Summary description of the package of documents for presenting a large project. 

Finally, it is worth noting the investment memorandum, which is being built to present the project most effectively to potential investors. 
The quality of this document largely determines the chances of attracting capital. 
 
An investment memorandum is an informational presentation document about a business and a project, built to attract capital. This document includes the structure of the deal with potential investors, a detailed analysis of the company and the company’s operations, taking into account investments that attract. It includes measures to ensure optimal interaction between the investor, owner and project management after receiving capital. 

Analysis of the effectiveness of an investment project 

A comprehensive analysis of the effectiveness of an investment project is always a laborious process that includes forecasting and modeling cash flows, assessing risks and developing measures to mitigate risks. In many cases, companies do not have dedicated departments with experienced professionals to carry out this task effectively. 
 
Professional support from companies providing investment consulting services helps businesses solve such important tasks at a high level. 
 
Professional assessment of a business plan is inextricably linked to the assessment of the completeness, reliability and relevance of the information, the accuracy of the calculations, the validity of the parameters, risk assessment, identification of project weaknesses and their impact on the results, analysis of the effectiveness situation, etc. These and other services bring obvious benefits to project initiators. 

Hiring investment consultants to assess the effectiveness of large projects allows company owners to save a lot of money, increase the chances of attracting funding on satisfactory terms and ensure business growth. 
 
Obviously, making decisions intuitively in such cases would be presumptuous and quite risky. 

Due diligence and risk assessment 

To assess risks when purchasing assets or participating in a project, organizations and companies often resort to investment consultants to carry out. 
 
A complex procedure for comprehensively verifying a company’s business processes or an investment project, assessing their legal purity and commercial attractiveness as investment objects to substantiate investment decisions and mitigate investment risks. 

There are several reasons to proceed:
 
• Preparing for the sale and purchase of a company and/or company shares. 
• Evaluating the investment attractiveness of a company or project. 
• Preparing for a merger or acquisition agreement. 
• Verifying potential partners, etc. 
 
Among the tasks, investment consultants pay special attention to determining the current value of an asset and its future value in investment to determine the project’s profitability. 
 
The purpose of the audit may be to minimize information asymmetry between investors and project initiators for more efficient and safe investment. 
 
Aiming to avoid or reduce the following risks:
 
• Buying a company at an inflated cost. 
• Borrowers do not fulfill their debt repayment obligations. 
• Asset loss due to participation in a risky project. 
• Damage to the company’s business reputation. 
• Recognition of the transaction as invalid. 
• Litigation and compensation. 
• Company conflicts. 
 
Within the framework of investment consulting, it includes studying all aspects of the business, including marketing, finance, technical, and legal. 
 
Based on the results of the measures taken, all areas of the company’s (project’s) operations are combined into a report containing expert opinions on the project’s profitability and risks. 
 
Since raising capital for major investment projects is the most important and complex part of investment consulting services, we will highlight this factor in a separate section for more detailed discussion below. 

Fundraising: attracting investment for large businesses

Fundraising, or raising capital for investment projects, is considered a popular investment consulting service today. 
 
Arranging finances for a business project is a long, complex, and expensive process, but it does not guarantee 100% success for each proposed project. 
 
Fundraising in business consulting means a set of consistent activities to seek and attract investors. Therefore, some consulting firms define this service as investment financing. 
 
A good investment advisor will comprehensively justify the use of different financing tools and methods and build an optimal financial plan. 

This is influenced by the following factors:
 
• Terms of implementation of the investment project. 
• Project type and current technical parameters of the industry. 
• The specific stage of the project cycle. 
• The tax system in the home country. 
• The company’s asset structure. 
• The capital market, etc. 
 
In all cases, the purpose of this activity within the framework of investment consulting services is to raise capital on terms beneficial to the client through long-term loans, share issuance, leasing instruments, etc. These tasks are usually addressed using project financing instruments. 
 

Financing an investment project must yield the following results:
 
• Attracting sufficient capital for the entire project and for each stage of the investment cycle in accordance with the implementation schedule. 
 
• Minimize risks and costs for project participants, each party striving to maximize benefits and having specific requirements for the outcome. 
 
The greatest concern in attracting investors arises in the startup phase of a company (project) or the company’s rapid growth phase. Consulting firms have a vast database of potential investors, understand their profiles and strategies. Potential investors also use these contacts. 

Types of investors and fundraising strategies

The investor’s goal is always formed through the development of a clear investment strategy or investment plan, which, in the long term, will lead to the achievement of goals. Investors achieve these goals by purchasing various assets over a period of time. 

The investment process consists of the following stages:
 
1. Search and purchase of a profitable asset. 
2. Receiving income during the ownership of the asset. 
3. Finding a new buyer of the asset. 
4. Selling an asset. 
 
Income during the investment period includes regular income during the ownership of the asset and final income as a result of changes in the market value of the asset:  

• Passive investment strategy : investor’s actions end with buying an asset, after which he receives dividends or profits (the so-called "buy and hold" strategy). 
 
• Active investment strategy : investor is interested in the growth of income and capitalization of the asset (appreciation in value over time). In this case, the investor seeks to make extra money from the growth of the value of his asset, monitors changes in value and is ready to sell at any time. 
 
Different types of investors have different motivations and goals when participating in projects, they are attracted at different stages of the project cycle. 
 
Therefore, depending on the type of project and its life cycle stage, the objectives of investment rounds will differ. 

It is important to take these stages into account when building fundraising strategies for large businesses, as these strategies should be fully aligned with the investor’s understanding of their financial benefits at each stage and its duration. 

Table: Types of investors in large business projects and their characteristics. 
 

It is important not to limit yourself to looking for investors with a suitable profile. 
 
In the case of financing large projects, we are talking about a comprehensive service, including searching for investors or project lenders, developing an attractive proposal, organizing effective communication, developing a financial model, etc. 
 
Finding a capital provider in investment consulting is only the first step towards a project’s success. The second step depends on the proper preparation of the project and the investment attraction team (presentation and communication). The main task of a consultant when organizing an investment round is to create balancing mechanisms to protect the interests of the parties in the long term. 

Strategy and Algorithm for Attracting Large Investments 

It is obvious that a well-organized investment attraction strategy for large investment projects has a decisive impact on the success of a given project. 
 
A professional fundraising strategy should include the following: 
 
• Determining the required amount of investment. 
• Analyzing and comparing alternative funding sources. 
• Identifying the target audience of the project (investors, lenders). 
• Developing an investment proposal and sending it to investors. 
• Developing an effective scheme for project exit (exiting of the participants). 
• Organizing an effective project presentation. 
• Communication between participants. 
• Transaction structuring. 
 
One component of the fundraising service is the so-called Investor Relations (IR), which includes the organization of information and analytical measures aimed at establishing and developing two-way communication with investors, financial analysts, creditors, partners, and other participants. 
 
Investor Relations includes company reports, databases of investors and lenders, contacts with business media, press releases and summaries for the target audience, presentations on financial results, investment plans, programs, etc. The purpose of these actions is to provide the listed participants with the necessary information to make informed investment decisions. 
 
Below we have provided a typical algorithm for interacting with a potential investor. 

Investor Profile Research 

Companies that provide investment consulting services to large businesses specialize in collecting and arranging valuable information about the investment profile of potential partners. 
 
This information can be successfully used to attract capital for specific projects. 

The essence of studying an investor’s profile is to find out the investment strategy, the acceptable level of risk, the possible amount of funding, the desired equity stake in the project, and preferences, preferred investment stages, industries, regions, and other characteristics. 

Preparing a Project Presentation 

Preparing a presentation on an investment project includes: 
 
• Purpose and parameters of the project. 
• Terms and stages of implementation of the investment plan. 
• Information about the initiator (group, qualifications, experience). 
• Market, industry, and competitive environment. 
• Technology, description of products and services. 
• Investment volume and funding sources. 
• Financial model and forecast. 
• Investment plan. 
 
The project presentation should be comprehensive, but at the same time, concise, clear, and persuasive. 
 
It is important to describe the strengths of the project in a short time, outline a number of scenarios for the development of events, and point out the parameters that affect its outcome, emphasizing the base scenario and analyzing the payback period. 
 
A convenient format for presenting information about the project, designed to attract the attention of a potential investor in 3-5 minutes, along with a well-structured presentation structure, guarantees excellent results at the subsequent stages of interaction. 

Agreement Structure and Investor Selection 

This element of cooperation with potential investors is considered the most difficult and time-consuming in investment consulting. 
 
The structure of the agreement includes the following: 
 
• Project participants. 
• Terms of project financing. 
• Optimal capital structure and financing methods. 
• Funding conditions: minimizing risks for participants. 
 
The classic approach to financing large business projects is focused on finding the most suitable combination of equity and debt. The advantages and disadvantages of each of these sources are widely known and have been described in our articles. 

Hybrid Financial Instruments 

Modern projects are characterized by increased levels of risk, which has been proven many times by examples of the negative impact of market and political factors on many companies ( for example, industry sanctions, widely used in recent years in the context of increased geopolitical tensions ). 
 
In an effort to protect themselves as much as possible, project participants use hybrid financial instruments, which help increase profits and protect investors from the consequences of project failure. 
 
Hybrid financial instruments include but are not limited to: 
 
• Convertible bonds : debt securities that the holder has the right to convert into a portion of the project after a certain period of time. 
 
• Mezzanine finance : an instrument that is intermediate between bank loans and private equity. It is a combination of a number of instruments with different levels of risk and profitability. 
 
• Warrants : options that allow the purchase of a certain number of shares of a company (investment target) at a predetermined price. 
 
The defense mechanism of each listed hybrid instrument is unique and applicable to certain types of projects and/or their implementation conditions. 
 
Developing best practices to protect project participants in one form or another is the responsibility of investment consulting firms. 
 
Below we will briefly discuss the downside of consulting services focused on meeting the interests of potential investors, whether they are individuals, organizations, and companies of many different ownership forms, who plan to invest in promising projects in the real estate sector. 

Investment Consulting Services for Potential Investors 

In the broad sense, investment consulting is a professional service that involves selecting suitable financial instruments and investment targets for clients in various fields of activity, from financing the real economy sector to financial assets. 
 
An investment advisor selects assets for his clients worth investing in, based on an analysis of the client’s financial situation and goals. 
 
First of all, this specialist provides detailed recommendations to inform the investor and describes the mechanism of operation of a particular investment product, including determining the level of risk, time frame or determining the expected rate of return and the initial payment. 
 
In addition, it provides professional services to manage the cash flow of investment projects and provides other services for large businesses: 
 
• Investment project management. 
• Preparation of investment memorandums for partners. 
• Development and professional evaluation of investment projects. 
• Analysis and monitoring of investment projects. 
• Development of detailed business plans for projects. 
• Financial risk management. 
• Project support from A to Z. 
• Capital mobilization, etc. 
 
Despite the vast capabilities of investment consulting service providers, the final investment decision remains with the client, and consulting services do not create any obligations. 
 
Investment consulting belongs to the category of brokerage services. Activities in this area are strictly regulated and limited by the national law of a particular country, and in different countries, investment consulting may have its own specific features and limitations. 
 
In particular, providing such services may require a special license. Therefore, providing any advice and recommendations for a fee or free of charge related to stocks or bonds or investment fund units can only be carried out by licensed organizations (companies). 

Reasons for Using Investment Consulting Services 

The job of an investment advisor involves assessing risk and investing resources in instruments that can bring the greatest return. 
 
They are hired by banks, brokerage firms, investment funds, large multinational corporations, medium and small businesses, and private investors. 
 
Close cooperation between the investor and the investment advisor, including mutual exchange of information and ideas, can help analyze the financial situation and point out the best path for a successful investment. 
 
We would like to remind you that the investor makes the final investment decision by agreeing to a certain risk and based on the recommendations of the specialist. Investment consulting services are highly personalized, so the portfolio that the investor builds with the support of the advisor will always be unique. 

The main responsibilities of an investment advisor include: 
 
• Providing advice to private clients on various instruments. 
• Managing investment portfolios using optimal financial instruments. 
• Advising companies on mergers, acquisitions, and capital restructuring. 
 
Investment advisors primarily perform tasks related to entering into agreements for the provision of their services through intermediaries such as an investment company or to ensure the performance of those agreements. 
 
Advisors also receive and transmit orders to buy or sell securities or participate in collective investment schemes on behalf of their clients. 
 
There are many very important aspects that clients need to consider when preparing to invest, and investors can pay dearly if they miss any part of this puzzle. For this reason, it is vital to consult with experts, as this field is very broad and complex. 
 
Investment advisory services can be used by companies and individuals who lack experience or knowledge in the field of investment and have free funds that they want to invest at an acceptable rate of return. 
 
Of course, investment advisory services come with additional costs, but given the potential benefits that can be obtained or the avoidance of large losses, this is definitely a worthwhile investment. 
 
When looking for an investment advisory company, experts recommend choosing a company with a good reputation among clients and solid experience in a particular field. 
 
A good investment advisor can intelligently manage the capital entrusted to them by clients who are not familiar with the financial market. In addition, the advisor has certain responsibilities under local investment law. If the investment advice does not meet the standards, the advisor may be held liable for losses incurred by the investor as a result of their inaccurate advice. 

How to choose the right investment advisor? 

You can start your search with the licensing authority of the corresponding country. However, experts recommend relying on informal channels, taking into account the experience of other companies or private investors. 
 
You should also check whether the advisor charges a one-time fee or whether the client has to pay monthly to create and constantly maintain an investment portfolio. Common practice is to charge a commission on the profits received based on the advice of the investment advisor. 
 
The opinions of current and former clients are a valuable source of information about investment advisory service providers. 
 
It is important to understand the ability to provide comprehensive services to the investor. 
 
First of all, a good investment advisor should analyze the client’s profile, that is, check the client’s investment risk tolerance, investment timeframe, and investment opportunities. Based on the analysis, the expert can suggest what type of investment is suitable for the client. 

Our investment advisory services 

The successful investment activity of companies in a highly competitive business environment requires competent professionals and modern technology. 
 
Investment consulting is a specialized type of consulting in many areas of investment activity that has the potential to increase the efficiency and competitiveness of capital-intensive projects. 
 
Investment advisory services include, but are not limited to: 
 
• Analysis of investment projects. 
• Development of a detailed business plan. 
• Financial modeling and forecasting. 
• Provision of long-term business financing with flexible terms. 
• Project consulting and support at all stages. 
 
If necessary, together with international partners, we carry out engineering design, construction, procurement, and installation of equipment under contract terms (turnkey). 
 
Therefore, our team is ready to provide our clients with a full cycle of professional services, from business ideas to finished products. 
 
We actively cooperate with large companies in dozens of countries around the world, including Spain, France, Germany, Brazil, Mexico, Saudi Arabia, South Africa, and other countries. 
 
If you are interested in comprehensive investment advisory services for large businesses, both domestic and foreign, please contact us.