Business Plan for an Investment Bank in Türkiye Assoc. Prof. Hülya Hazar

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BUS 362 Financial Institutions and
Markets
Business Plan for an Investment Bank in Türkiye
Assoc. Prof. Hülya Hazar
Faculty of Economics and Administrative Sciences, Department of
Business Administration
[email protected]
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Financial Institutions and Markets
1. Fields of Financial Support to Investments
2. Loan Approval Process
3. Business Plan
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Financial Institutions and Markets
Financial Support to Investment Projects in Different Fields
• Complete new plant investment
• Capacity increase
• Plant modernization
• Machinery-equipment purchase
• Technology, R&D and innovation
• Efficiency and environment
• Distribution and logistics
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Financial Institutions and Markets
The Loan Approval Process
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Loan application is made by the company.
The application is shared with relevant departments in the
bank.
The business plan is prepared by the technical, economic
and financial departments.
The business plan is part of the loan evaluation report of the
bank.
The loan evaluation report is shared with relevant
departments.
A presentation is made to the Credit Evaluation Committee.
Project requests, which are approved by the Credit
Evaluation Committee, are submitted to the Board of
Directors for approval.
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Financial Institutions and Markets
Business Plan
• A business plan is a strategic document that outlines a
company's goals, strategies for achieving them, and the time
frame for their achievement.
• It covers aspects like market analysis, financial projections,
and organizational structure, serving as a roadmap for
business growth and a tool to secure funding.
• It has to show that the outcome fulfills the requirements and
the concerns of the lender. For example, if the loan requires
that the company has be aware of the climate change, the
business plan has to show that the operations related to the
investment will not cause any climate change.
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Financial Institutions and Markets
Sections of a business plan
• General information about the company
• Tecnical section
• Economic section
• Financial section
• Conclusion
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Financial Institutions and Markets
General information about the company
• In which sector the company is working?
• About the shareholders
• About the management
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Financial Institutions and Markets
Technical Section
• Information on current situation
• Detailed technical analysis of investment projects
• Investment and operating cost analysis
• Investment capacity assessment
• Environmental and social impact assessment of the
investment
• Examination of appraisal (mortgage) value
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Financial Institutions and Markets
Economic Section
• Understanding the market and the sector dynamics
• Sectoral positioning with respect to the competitors
• Creating sectoral data to evaluate projects - pricing
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Financial Institutions and Markets
Financial Section
• Detailed financial analysis of the company
• Sales performance and profitability by product group
• Current financing structure
• Working capital management
• Risk management
• Future expectations and cash flow projection
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Financial Institutions and Markets
Conclusion
• Have the requirements of the loan met?
• Decision: approved / not approved
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Subjects Covered
1. Fields of Financial Support to Investments
2. Loan Approval Process
3. Business Plan
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References
Readings:
Various sources
Software used to do the homework:
Microsoft Excel
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Financial Institutions and Markets
Good luck…
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