A strategic investment is a transaction which is closely associated with joint ventures. In strategic investment, one company makes an investment in another company. These two companies enter into an agreement to serve shared goals. The term strategic investment applies to two different ways of investment in the financial world. The first is when an individual or a company invests with the objective of generating safe, steady returns typically with the advice of Consultant Company which is fully conversant of the trends in the market and addresses the requirements of the customer.
Joseph Scott Audia on why is strategic investment needed?
Raising capital/investment is an essential modern tool to start or expand the business/company. This is necessary to expand the business, to stay competitive in terms of quality of product, technology, & to cope up customer’s need and market requirement.
Strategic Investment by an individual or by a company is essentially with the objective of generating safe and steady return & acquire a significant position in the business world. This is normally done with the advice of an expert who is well conversant with the market conditions and keeps the client requirement in mind. Investment can be by way of putting capital in the company, share acquisition, merger and joint ventures. Volume based companies frequently have the chance to accept an investment from a tactical investor.
Strategic investment decision making comprises the process of evaluating, identifying, and selecting among projects that are likely to have a significant impact on the organization. In a highly competitive environment, internationalisation is a very attractive strategic investment for all kinds of firms. However, making the decision on internationalisation, like other strategic investment, is very hard owing to high uncertainties and linked risk factors involved in it.
Strategic buyers are operating companies that are often suppliers, competitors, or customers of the firm in which they want to invest. Their objective is to recognize companies whose products or services can synergistically incorporate with their existing product line to create incremental, long-standing shareholder value.
The strategic investment decision-making process is one of the greatest challenges for the top management. There is a serious need to get these decisions right. On the one hand, if the decision proves thriving, the firm reaps major strategic and operational advantage. On the other hand, significant opportunity and substantial resources are lost if the decision is incorrect.
Joseph Scott Audia is a Registered Representative currently working for the investment firm VCS VENTURE SECURITIES, LLC. He has more than two decades of experience as a Stock Broker. He has run his own branch office for over ten years where he has overseen the management of several other brokers as well as managed and retained dozens of his clients’ accounts for more than a decade. His honesty, clear-cut nature and deep knowledge of the stock market and investment strategies are exemplified by the dozens of clients that have trusted him over the years with their investments and continue to do so.