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INVESTMENT PARTNERS’ SELECTION CRITERION
Investment partners are catalysts of investing that everybody must constantly lookout for in order to make it this highly challenging business world of today. The presence of multinational business platforms prove to be more robust when operated under one investment partnership or the other.
You need to have someone who has knowledge of economic, political, religion and cultural environment of a country before investing in that country, even technological preference. You don’t involve yourself into a business deal that will set up a plant to assemble polycom vsx 8000 in a country that does not even understand what a web conferencing is all about for instance.
The above reasons are why you need an investment partners to achieve your investing objective.
These investment partners can be business angels, venture capitalist, or even an entrepreneur with good investment idea but have no fund to execute the project. The points listed below will act as guide to investing.
WHAT TO LOOK OUT FOR WHILE SELECTING INVESTMENT PARTNERS
- TAXATION LAWS OF THE COUNTRY: taxation laws vary from country to country. Before going into any form of investment partners form of contract, make sure you consult with your tax consultant if you don’t have the right expertise of taxation. The reason you must do this is because many countries tend to heavily tax multinational companies. Again, you may lose all your profits before your dividend of investing gets to you. This will be more pronounced when withholding tax rate in the host country is more than you have in your home company.
- ANTI CAPITAL FLIGHT POLICIES OF THE COUNTRY: you will want to be sure that the anti capital flight policies of the country you intend to take up an investment partners from. You definitely be making a wrong choice if you select an investment partner whose home country have an unfavourable capital flight policies.
- THE TEAM MEMBERS OF THE COMPANY: be sure to run a background check on team members of the investment partners you intend to work with. A background check can be run using different methods; I start by running a Google check and then check up with relevant authorities for possible clues as regards the past of my potential investment associate(s). Make sure none of the investment partners have been convicted in the past.
- THE INVESTMENT HISTORY OF EACH MEMBERS OF THE TEAM: this is similar with the above but the intentions are different. While the above check is run to be sure you are not dealing with a criminal, this search is to ensure you are dealing with someone who have investment history. The person may be experienced in a penny stock selection. or online investment for instance
If you don’t take time to investigate your potential investment partners’ activities, you would surely regret not doing so. The sensitivity of investment makes many scammers to seek ‘undeserved income’ from unsuspecting people. We must always be on the lookout for investment fraudsters as it is our responsibility to protect our investments as investors.
You will be happy to have an individual with asset allocation techniqueknowledge in the investment partners’ team. This adds to your investment strategy basket!