Investment Management

30 SEPTEMBER, 2021
Stages of a Typical Investment Project
Concept
Verification of the Concept / Feasibility Study
Internal Conditional Decision
Detailed Country Specific Due Diligence
Region/Country Selection
Location Due Diligence
Site Selection
Setup Local Business
Conclude Fundamental Contracts
Stages…
Tender and select contractors
Planning , permitting and construction
Hiring employees
Install technology
Trial production
Start daily operation
Decision
preparation
S O U R C E S O F I N F O R M AT I O N

• E MB A S SI ES
• H I G H CO MI S S I O N S
• T RA D E REP RE S EN TAT I O N S
• CH A M BE RS
• P RO F E SS I O N A L A S SO C I ATI O N S
 • GOVERNMENT OF HUNGARY
• HUNGARIAN INVESTMENT
PROMOTION AGENCY / HIPA
Sources… • ECONOMIC, INVESTMENT AND
TRADE SECTIONS OF EMBASSIES
• HUNGARIAN EXPORT PROMOTION
AGENCY / HEPA
Ranks in Contemporary Diplomacy
Ambassador
High Commissioner
Minister
Minister Counsellor
Counsellor
First Secretary
Second Secretary
Third Secretary
&
Attaché
Sources…
• C ON S U LT I N G C O MPA N I E S
• L AW F I R MS
• R E A L E S TAT E A G E N C I E S
Stages of a Typical Investment Project
Concept
Verification of the Concept / Feasibility Study
Internal Conditional Decision
Detailed Country Specific Due Diligence
Region/Country Selection
Location Due Diligence
Site Selection
Setup Local Business
Conclude Fundamental Contracts
Internal
decision
• IF FEASIBILITY STUDY CONFIRMS,
INTERNAL CONDITIONAL
DECISION IS MADE
• PROJECT ENTERS NEXT PHASE
• DETAILED INVESTIGATIONS TO
FOLLOW
Stages of a Typical Investment Project
Concept
Verification of the Concept / Feasibility Study
Internal Conditional Decision
Detailed Country Specific Due Diligence
Region/Country Selection
Location Due Diligence
Site Selection
Setup Local Business
Conclude Fundamental Contracts
 BASED ON THE FINDINGS OF THE
FEASIBILITY STUDY, EXACT
DEFINITION OF:
• A C H I EVAB LE TAR G E TS
Selection of • P O TE N T IAL G EO G R AP H IC AL A R EAS
Region/ • TA R G ET ED M AR KET S / PL A C ES ,

Country •
S EG M EN TS
B U D G ET
• S C H E D U L E / C O M PL ET IO N D ATE S
• E N T ER - T H E - M AR KET D EAD LI N ES
 T O B E I N V E S T I G AT E D

 GEOGRAPHICS
Selection /  LEGAL ENVIRONMENT
Region,Country  TA X AT I O N
 P O L I T I C A L S TA B I L I T Y
 INCENTIVES
 P R O X I M I T Y TO M A R K E T S
 P R O X I M I T Y TO S U P P L I E R S
 
H T T P S : / / W W W. D O I N G B U S I N E S S . O R G / E N / R A N K I N G S
H T T P S : / / W W W. E I U . C O M / N / S O L U T I O N S / V I E W P O I N T /

H T T P S : / / W W W. F D I I N T E L L I G E N C E . C O M / F D I - M A R K E T S
 • LIVING STANDARDS
• WAGES, SOCIAL COSTS
Selection… • UNIONS
to be investigated… • GENERAL AVAILABILITY OF SITES
&INFRASTUCTURE
• INTERNATIONAL SCHOOLS
FI N A N C I A L
F I S CA L
Incentives
IN KIND
Stages of a Typical Investment Project
Concept
Verification of the Concept / Feasibility Study
Internal Conditional Decision
Detailed Country Specific Due Diligence
Region/Country Selection
Location Due Diligence
Site Selection
Setup Local Business
Conclude Fundamental Contracts
 • 2 - 3 COUNTRIES

Country 3 - 4 P O T E N T I A L L O C AT I O N S I N E A C H
•
P R E S E L E C T E D F O R F U RT H E R , L O C AT I O N
selection S P E C I F I C I N V E S T I G AT I O N S
GO AHEAD FOR NEXT PHASE: SITE
SELECTION
Stages of a Typical Investment Project
Concept
Verification of the Concept / Feasibility Study
Internal Conditional Decision
Detailed Country Specific Due Diligence
Region/Country Selection
Location Due Diligence
Site Selection
Setup Local Business
Conclude Fundamental Contracts
 U LT I M AT E P U R P O S E : TO F I N D T H E B E S T
L O C AT I O N F O R T H E I N V E S T M E N T
D E TA I L E D A N A LY S I S A N D E VA L U AT I O N O F
THE PRESELECTED SITES
SEVERAL ON-SITE VISITS
DISCUSSIONS WITH GOVERNMENT AND
Site selection LOCAL REPS
S I T E S U RV E Y / I N C L G E O T E C H N I C A L
I N V E S T I G AT I O N S
P R E L I M I N A RY A R C H I T E C T U R A L D E S I G N /
S I T E L AY O U T D R AW I N G S
  W O R K F O R C E AVA I L A B I L I T Y
 COSTS OF LABOUR
 GEOGRAPHICS/LOGISTICS

Site selection  T R A N S P O RTAT I O N / T R A F F I C L I N K S

 TELECOM INFRASTRUCTURE
criteria  U T I L I T Y S E RV I C E S AVA I L A B I L I T Y A N D
COSTS
 CONSTRUCTION SCHEDULE
  L A N D AVA I L A B I L I T Y A N D C O S T S
 LAND OWNERSHIP
 INCENTIVES /CENTRAL, LOCAL

Site selection…  C R E D I B I L I T Y O F L O C A L P L AY E R S
 REFERENCES
 CONSTRUCTION COSTS
 O T É K – N AT I O N A L U R B A N P L A N N I N G A N D
BUILDING REQUIREMENTS
Site Survey - S T R U C T U R A L P L A N O F H U N G A RY

Planning C O U N T RY L E V E L S T R U C T U R A L P L A N S
SETTLEMENT PLANS
DISTRICT PLANS
L O C A L B U I L D I N G R E G U L AT I O N S