Interesting question. Maybe I'll give it back to you, you simply decide what you're going to invest your money in? Will you buy real estate, invest in funds, simply save for events, or will you not invest at all and prefer to travel and live low-cost?
Even such a common thing as buying furniture, a car, jewelry, or even an investment in health (which these days can be several tens or hundreds of thousands) is an investment that we probably think about for a while and consider various pros and cons before deciding to use the resources.
From a company's perspective, in the area of investments we are talking about several times larger resources and amounts. So my answer is NO, I don't think it is possible to simply identify investment opportunities or projects. It is a ivory coast phone number data very complex matter that is taught at universities for several semesters.
If I were to elaborate, I would address two perspectives on investment in my answer. The first, common investment opportunities to support sales and brands within commercial companies, and the second, identifying and purchasing companies that can be complementary to the company's portfolio. I will describe both situations in very, very simplified terms.
In the first situation, a company usually decides, as part of its strategic planning, which brands it wants to launch and what marketing and sales strategy it will use to support them. As part of this decision, it usually determines what return on investment it expects. The first year of a brand launch is usually not profitable. Let's say that the company determines, as part of its strategy, that it wants to break even in year 3.
As part of the strategy, it then decides how much to invest in the price of the product, how much to invest in sales channels, and how much in advertising. From the expected sales and expected investments, it learns when the breakeven point will occur. The second case, the purchase of a company, is even more complex.
First, the company must have a strategy to monitor the market and see if there is a company/target on the market that could expand the current portfolio. The entire identification process can take several years. In such an investment project, the legal framework that regulates such opportunities must also be taken into account. An internal process must be carried out to decide whether the company is a suitable target.
When it is decided internally that we want to proceed with the identified project, the involvement of external stakeholders begins. The identified company must be approached and found out if they are even interested in selling. If they decide that they are, the cycle of involving lawyers and consulting firms begins, if the companies are relatively large, the antitrust authority must be approached, etc.
There will come a point during the negotiations where both parties may decide to stop the process and not continue with further negotiations. So as you can see from the complexity of the answer, investment decisions are not easy, they are always associated with many emotions and discussions about investments can be very challenging, in both cases.
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