Business Report
Introduction
Businesses are established and meant for the economic prosperity, and also for providing strategic well being for the core operations of the company. Investors are very important for the organizational level, as they are the one who will inject their money in the stocks of the company in order to get high amount of return in the result. A business which is entitled to give high amount of return to their investors would be classified as a more worthwhile business as compared to the other one (Blackwell, 2008).
The choice of entity and business valuation function of a company depends upon two things, products and the market planning of the company for their customers’ one (Blackwell, 2008). Investment can be done for motley purposes, like to earn high return on investment (ROI), getting loan benefits and others. Regardless with the end result, the existence and importance of investment is also effective as far as enhancing the productivity of the companies particularly (Blackwell, 2008). In the investment purpose, organizations would consider the things in an effective and organized manner (Blackwell, 2008) . The core theme of this paper associated with the making of a business report for a Venture Capital (VC) firm which is strategizing to invest in a company which is Vista Investors. There are certain sections that needed to be cover in this particular analysis for the advancement of the products in particular. Vista Investors is an investment management company established for the convenience for the employees, shareholders and the external investors. The main theme of this company is to provide effective buying and selling strategy to the investors for their greatness and effectiveness in the market. This assignment is all about recommending the VC regarding the investment in the company for their effectiveness in the market.
Analysis & Findings
Leadership and Structure
Leadership and management are some of the important aspects that associated with an organization and those organizations whose leadership stance are effective and powerful are more productive than that of those organizations which don’t have high leadership effectiveness. Vista Investors is an investment management company that requires high amount of specification and effectiveness in the market particularly. It is extremely important to have a powerful and intelligent management team for such an investment management company (Blackwell, 2008).
Product or Services Analysis
Investment management and asset management industry is one of the most important industries that associated with the economic expansion and effectiveness of an economy particularly (Covello & Hazelgren, 1994). From the business plan analysis, it is clear that the products and services of the company are highly organized and effective. Vista Investors is providing effective investment decision for the sake of the company’s overall operations in particular.
The products and services of the company are well organized and structured that provide benefits to the company in an effective manner. Vista Investors provide buying and selling strategies to the investors in order to enhance their effectiveness in the process of investment in particular. The management of the company is highly effective and mobilizes, and they are providing some of the major results for the customers of the company.
Vista investor is now providing effective investment decisions to its consumers through the immense and effective technological visions with high amount of communication stance. The dynamics of the technological advancement makes this company a highly effective one as far as providing effectiveness to them in the market. The services of Vista investors are highly effective and organized, and it is favorable for VC to invest in the company, because the potential of the company in terms of growth is highly effective in the market with positive attitude and behavior. Though the business plan don’t have any information regarding the promotional strategies of the company, but it will certainly be effective in the future for the future prospects of the company, but the company has to promote the things in an effective manner in the future for their core effectiveness in the market. The management will certainly get immense appreciation with the new promotional strategies of the company, which will be effective for the future of VC as well.
Exit Strategy
Management of risk is an important strategy from the viewpoint of an organization, and those organizations which are highly effective in terms of managing their finance and operations in an effective manner are more productive and effective as compared to those organizations which are unable to manage their operations and risk in an effective manner (Covello & Hazelgren, 1994). The exit strategy of the company strides the employees and owners of the company and required to sell back their ownership stakes upon the core retirement and departure (Covello & Hazelgren, 1994). The company is having effective budget, and has the chance to enhance their productivity in the market as well. The exit strategy of the company is effective, which will certainly gives information to the market and the VC to enhance their investment services and stance in an effective and organized manner. With the help of this particular strategy, the exit strategy of the company will enhance effectively in the market. The next big thing which is associated with the recommendation stance to the VC is about the sources of finance used by the company. In my personal view and after a critical analysis of the business plan, approaching the financial market for Initial Public Offering (IPO) would be a better choice for Vista Investors to enhance their effectiveness further in the market. Vista investors would get certain added advantage with the help of the IPO and can enhance their core productivity in an effective and organized manner. It is recommended to VC to invest in the company, and after the investments have been made, they should compel the company to go with the IPO in the future for their betterment in the market with effectiveness.
Financial Aspect Analysis
In this part of the analysis, some of the major ratios will be taken into consideration to analyze the stance of the company as far as increasing the investment return of the market with effectiveness (Covello & Hazelgren, 1994). Three years of data have been forecasted in this particular business plan. From the sales projection, it is clear that the sales of the company will increased considerably for two consecutive years by 477% and 439% in second and third year respectively. It is showing that the sales growth of the company is even higher than the industry average profile.
Conclusion & Recommendations
This project is all about concluding and recommending a big Venture Capital Company about the core effectiveness of the company as far as determining the effectiveness of the project in particular. The analysis has been initiated on the basis of a business plan which has been initiated and made on the core scenario of an investment management company. The company highlighted in this particular analysis Vista Investors, and it has been analyzed through four different angles to analyze whether to invest in the company or not.
- The leadership stance and behavior of the chosen organization is highly effective and mobilize, and they have the power and guts to enhance the productivity of their employees. VC has to take this particular provision into consideration and should invest substantial amount of money in the Vista Investors as it will be effective for the future
- It is also recommended to the Venture Capital Company (VCC) to invest in the company by analyzing the current product and services of the company, along with analyzing the current exit strategy of the company in a perfect manner
- In terms of financials, Vista Investors would not get effective things in the commencement of the operations, as the net income and other important ratios are not in the favor of the company, but it will be standing on their feet from the third years of operation, which will be equally sound for the company in particular
- A new company requires sometime to strengthen its roots in the new market, and Vista Investors require sometime to reach on the succession. The same can be found from the proforma financial statement of the company, and it is recommended to the VC to wait and judge the performance of the company
In my verdict, VC should invest in the company and should bring Vista Investors into its portfolio of companies. The company should go with Equity Investment with the company, as it will bring positive and long term feedback for them in the future.
References
Blackwell, E. (2008). How to prepare a business plan. London: Kogan Page.
Covello, J., & Hazelgren, B. (1994). The complete book of business plans. Naperville, Ill.: Sourcebooks Trade.
