вторник, 15 октября 2019 г.

program for developing business plans and evaluating investment projects.

Project Expert - a program for developing business plans and evaluating investment projects.
Project Expert is the best-in-class program that, thanks to its capabilities, has become the standard for business planning and evaluation of investment projects in Russia, the CIS countries and the Baltic states.

The analytical system Project Expert is a program that allows you to "live" the planned investment decisions without losing financial resources, provide the necessary financial reporting to potential investors and creditors, and justify for them the effectiveness of participation in the project.



It is indispensable for creating and choosing the optimal business development plan, developing the financial part of the business plan, and evaluating investment projects.

It allows you to simulate the activities of various industries and scales - from small venture companies to holding structures. The program is widely used for financial modeling and development of business plans for production and services in banking, telecom, construction, oil and petroleum refining, transport, chemistry, processing and light industry, mechanical engineering, aerospace, energy.



Project Expert Features

Development of business plans, evaluation and implementation of investment projects
Step 1. Building a financial model of the project, the company, taking into account the economic and obtaining forecast financial reports.

Step 2. Determination on its basis of the volume of capital investments and working capital needed to finance the project.

Step 3. Development of a financing strategy.

Step 4. Project analysis - assessment of an investment project, including a quantitative assessment of project risks, dynamics of business value for various points.

Step 5. Creating a business plan, investment memorandum, other reports: setting a specific structure, preparing the text part, including the necessary forecast financial statements, graphs and charts in it.

Step 6. Making adjustments to the initial data of the investment project, evaluating its effectiveness in the process and based on the results of implementation

Business planning. Development of a business plan for the enterprise.
Creating a business plan for a company, evaluating various options for developing an enterprise, a business plan for expanding an existing or creating a new production, entering new markets, developing a sales network, restructuring and possible sale — all this requires preparation of a financial plan and final reports.

Project Expert greatly facilitates the business planning process. Using Project Expert, the initial data on the planned operational activity, ensuring its implementation of the newly created assets and funds raised for their financing, are automatically converted into:

forecast financial statements: cash flow statement, balance sheet, income statement,
tables of forecast financial indicators, investment performance indicators
business plan summary reports.

Forecast financial and management reporting
How to predict the financial results of the enterprise in Project Expert? The results of modeling the activities of the enterprise are reflected in the financial statements: Profit and Loss Statement, Balance sheet, Cash-Flow cash flow plan (Fig. 2).

Based on the financial model, Project Expert automatically generates reports that comply with international financial reporting standards (IFRS). This makes the calculation results understandable to foreign investors.

Financial reports demonstrate the results of the company, and you receive them in Project Expert automatically as a result of the calculations. The process of generating accounting procedures and generating financial statements is carried out in accordance with international accounting standards.

Financial and investment performance indicators
Project Expert also generates tables of investment performance indicators and financial indicators, including the following data groups:

Liquidity indicators - current liquidity, quick liquidity, net working capital and other indicators reflecting the company's ability to satisfy claims of holders of short-term debt obligations.

Profitability indicators - a set of factors showing how profitable the company is and how efficiently the use of various types of resources is.

Indicators of business activity - allow you to analyze how effectively the company uses its funds, include a set of indicators of the turnover of various types of funds, liabilities, etc.

Sustainability indicators - characterize the financial independence and solvency of the company, include various representations of the relationships between sources of financing (financial independence ratio, interest coverage ratio, etc.).
Detailing the results. Cash Flo. Total cost

Investment criteria characterizing the value and profitability of the company's shares (earnings per share, P / E, dividend coverage ratio, etc.).

Investment performance indicators (discounted Cash-Flow criteria) - net present value, project payback period, internal rate of return and other indicators used for a comprehensive analysis of the project.

The module "Detailing the results" provides the ability to detail the results of the calculation of the project. In total, you can use up to 30 standard tables that display the status and results of the project.

If this proves to be insufficient or there is a need for reports of a different format, you can easily create them in the “User Sheets” section.

Design and viewing of the output data prepared by the program are performed in the "Results" section. These materials, together with explanatory text, are included in the business plan, the formation of which is provided to you by Project Expert.

Development of a quality business plan
The “Text Description” module helps to create the structure and text of a business plan using an advanced system of tips and comments. The program provides the ability to connect and create data libraries for subsequent use in the preparation of projects. The text description can be included in the report created in the program, which can also be supplemented by calculation data from all program modules.

Dynamic update of reports sent to MS Word eliminates the chore of reformatting the report again after changing project settings. The report created in MS Word saves all formatting options when updating the results. If the data in the project file is changed, just click one button so that the new data appears in the report.

When preparing reports, all graphs and charts created in the system can be edited as MS Graph objects after being transferred to Word.

All this is difficult to implement without a financial model adequate to the planned business, easily and conveniently created at Project Expert.

The financial model of the project and the company
The process of constructing a financial model of an investment project or the entire activity of an enterprise is the most laborious and requires preparatory work to collect and analyze the source data. With Project Expert, you do not need to have a deep knowledge of mathematics or programming skills - you only need to know the described business well.

The Project Expert system allows you to develop a financial model of the company in a short time. To describe the project and the company, you will need to enter the following initial data: the start date and duration of the project, the list of products and services planned for release, the multi-level structure of the company down to each unit and product.

Sales plan
The sales strategy of the company implementing the project should be worked out in detail at the planning stage.

To simulate it in Project Expert, you will need to enter a list of products, indicate prices for each product and its estimated sales. The system allows you to take into account additional information about the influence of seasonality on the price, set a scheme by which the price of a product will be formed throughout the project. In the process of developing a sales strategy, Project Expert takes into account time factors, such as: the time the product (service) was sold, the time delay for payment after delivery of the product, and the terms of payment for the product or service of the consumer (in fact, prepaid or on credit).

When modeling sales, you take into account the volume of stocks of finished products and their storage periods, the percentage of losses in the sale of products, etc. The system also allows you to reflect the costs of advertising and promotion of products on the market.

You can evaluate the benefits of each sales scheme by analyzing the selected sales conditions.

Creating mathematical dependencies of sales of products on other factors, for example, on the size of demand, using the Formula mechanism allows you to automate the calculation of sales volumes and describe an individual strategy for selling products and services.

Production plan
When modeling the enterprise’s production activities in Project Expert, you just need to enter into the system data on the products, their production volumes, the quantity and cost of raw materials and materials, personnel costs in accordance with the existing production structure, and general costs — production costs, management costs, marketing, etc.

The system allows you to describe the production schedule and various types of costs, linking the selected parameters of the financial model of the enterprise with a complex mathematical dependence, for example, when modeling the volume of production of a product based on the capabilities of the enterprise and the predicted market capacity.

A production plan can be generated automatically by the system depending on the planned sales volumes. Project Expert allows you to establish the dependence of the production plan on other factors, for example, on the capacities of the used production equipment.

Project investment plan
Planned operational activities involve investments aimed at replacing assets or creating new ones.

The pre-investment and investment phases of any project require careful study of the work schedule and the volume of necessary investments. For this, Project Expert forms a plan of initial capital investments and preparatory work - the GANTT diagram.

The system is flexible enough to present project data, allowing you to either link all stages of investment and further operational activities, or describe these stages of the project independently. The interface of the section is well known to those who have already had to work with such project management systems as MS Project or Primavera SureTrack. In the Project Expert system, the description of the temporal characteristics of the project is not inferior to the listed network planning systems. At the same time, it is precisely the financial aspects of the investment plan of the project that are evaluated — the cost of the preparatory work, the resources used, the assets created and the features of accounting for investments. An example of a schedule is shown in Figure 11.

The program helps to determine the stages of work and establish the relationships between them, indicate the resources used to complete these stages, the procedure for their payment, and capitalize the investments made.

If the stages of production preparation are associated with the construction of buildings, the acquisition of equipment, land or other fixed assets, Project Expert allows you to choose the methods and terms for their depreciation: by production, linearly, at residual value, according to the scheme. The system provides for accounting for the revaluation of assets, their sale, as well as additional investments.

Description of the economic environment
In the course of financial modeling of the enterprise and the investment project, it is necessary to take into account the influence of environmental factors: tax environment, inflation, and fluctuations in the exchange rates used by the enterprise for monetary settlements.

With Project Expert analytics, you can easily describe finances

Project financing. Assessment of the need for capital investment and working capital
Any investment project, business plan of the enterprise are not feasible without solving the financing problem. The Project Expert program has the ability to model and select a financing scheme. What funds will be required at various stages of the project? The capital requirement is determined on the basis of the data displayed in the Cash-Flow Statement.

In fact, Cash-Flow is the main document designed to determine the need for capital, to develop a strategy for financing the enterprise, as well as to assess the effectiveness of capital use.

The values ​​of the account balance of the company are presented in the last row of the Cash-Flow table and demonstrate the forecasted state of the settlement account of the company implementing the project in different periods of time. A negative value of the current account balance means that your company does not have the necessary amount of capital.

It is important to form the capital in such a way that in no period of time does the value of the current account balance have a negative value. In this case, it is necessary to adhere to the basic principle - capital should be attracted only at that time period when it is really necessary.

It is important to consider the real conditions for raising capital. The analytical system Project Expert automatically determines how much money will be sufficient to cover the capital deficit in each estimated time period.

Modeling various financing options
A project financing strategy can be developed using borrowed and equity capital, leasing, and state financing. In addition to determining volumes, it will be necessary to choose conditions and parameters of financing.

The use of various combinations of these methods. The advantage of Project Expert is that the need for capital is determined taking into account inflation and can be adjusted in a timely manner. This avoids mistakes in investment planning.

Project Expert allows you to solve the problem of managing free cash generated by the project. It is enough to indicate the principles of dividend policy, and the real amounts will be calculated by the system. You can simulate your own scheme of the process of placing funds on various conditions for deposits or in alternative projects.

Rationale for potential contributors
In addition to evaluating the effectiveness of investing in the project as a whole, Project Expert successfully solves the so-called “investor task”. You determine whether the financial results of participation in the project satisfy the requirements of all parties interested in it - the owners of the enterprise, investors, creditors and government agencies, by analyzing the basic financial indicators and investment performance indicators calculated by the system.
Assessment of investment projects
After Project Expert generates forecast financial reports on the results of the enterprise: profit and loss statement, balance sheet, cash flow statement, the planned financial indicators and investment performance indicators are automatically calculated. Project Expert allows you to carry out project analysis in full and provides an approved methodology. In addition to evaluating the effectiveness of investment projects based on integrated indicators, the program provides:

sensitivity analysis
break-even analysis
scenario analysis

You can also create your own analytical tables in the system, add additional indicators and apply the necessary analysis methods to them.

Sensitivity analysis
One of the tasks of project analysis is to determine the sensitivity of the financial model of an enterprise to changes in various parameters. The wider the range of parameters in which performance indicators remain within acceptable values, the higher the margin of safety of the project, the better it is protected from fluctuations of various factors that affect the results of the project. The Project Expert system allows you to study how the financial performance of the project will change depending on changes in the overall inflation rate, tax rates, staff costs, sales and other project input data.

The study of the sensitivity of performance indicators to changes in the discount rate allows you to determine the stability of the project to fluctuations in the financial market and possible changes in macroeconomic conditions.

Break-even Analysis
The system analyzes the relationship between costs and revenues for various volumes of production.

In Project Expert, you solve the problem of determining the break-even point for each type of product in any billing period and calculate the sales volume that covers all the costs of its production and sale.

Based on data on the company's structural divisions and types of products, costs can be distributed by type of product and company divisions not only in accordance with a fixed share in total costs or in proportion to turnover, but also according to a complex scheme proportional to different distribution bases. This feature is also provided by the Formula mechanism.

When conducting a break-even analysis in Project Expert, a method based on the contribution to coverage is used. In addition to the quantitative and cost values ​​of the breakeven point, the system determines the margin of financial strength and evaluates the impact of the selected cost structure on profit - calculates the operating leverage. This allows you to determine the safety limit and the level of entrepreneurial risk, both for each period and for a number of periods in numerical and graphical form.
Breakeven

The summary tables created by the system make it possible to conduct a break-even analysis for a group of products on a specific date, determine the weighted average contribution coefficient for coverage, analyze the values ​​of operating leverage and financial strength margin, for each product and for the company as a whole. A similar analysis will be required to forecast changes in profits with changes in sales, and to introduce adjustments to production plans.

When describing the company in Project Expert, you reflected its structure. Now you can not only predict the financial results of each unit, but also analyze their activities and evaluate which units are profitable and which are not.

Scenario analysis - comparison of development options
In addition to analyzing the project, the Professional package has an additional module (Fig. 23) that allows you to conduct multivariate scenario analysis and receive answers to the questions "What happens if?".

When creating a project, the task of the analyst is to find the best development option. Project Expert provides the ability to quickly create several options for the development of the enterprise to compare them and choose the best. To create a new option, it is enough to set the percentage of deviations of the initial data of the project, for example, sales volumes of various products, their prices, tax rates, etc. You can create any number of development options and conduct a comparative analysis not only on financial indicators and investment performance indicators, but also on the entire spectrum of financial report data, user tables, detailing and analysis of options. Analysis results can be presented in graphs.

Project Group Analysis
Depending on the size and structure of the company, its economic activity can be carried out by implementing not one, but several areas financed from the general budget. In this case, it is of interest to jointly analyze all the projects implemented by the company, take into account their possible synergies, and create loan capacity.

When using the wide economic and economic ties of cooperation

https://www.expert-systems.com/financial/pe/

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