The service of studying and evaluating investment alternatives aims to provide a comprehensive analysis of options in a given market or sector — studying surrounding factors (economy, regulation, social factors, market trends and expected returns) to help investors make informed, effective decisions.
Why it matters
- Identify profitable opportunities: analyze financial and economic data to determine expected returns and risks.
- Reduce risk: analyze financial, legal, operational and social risks and set measures to lower them.
- Informed decisions: accurate, objective, fact-based information.
- Higher returns: select the most viable, highest-return opportunities.
Core evaluation steps
- Define objectives and criteria: financial and non-financial, such as required return, acceptable risk and sustainability.
- Collect data: financial, economic, market reports and relevant information.
- Analyze alternatives: via NPV, IRR and payback period.
- Assess risks: financial, legal, operational, political and social.
- Decide: based on results, criteria and defined goals.
Tools and methodologies
- Financial value analysis: NPV and IRR to assess attractiveness.
- SWOT analysis: strengths, weaknesses, opportunities and threats.
- PESTEL analysis: political, economic, social, technological, environmental and legal factors.
- Return-and-risk analysis: balancing expected return against risk.
- Sensitivity analysis: measuring how changes in key variables affect outcomes.
When deciding, weigh the desired return, risks, resource availability, legal requirements and the company's strategy. At Expertise Consultancy we provide a specialized team and advanced methodologies that give you confidence in the best decision.