Investment Analysis

Departments – Investment Analysis

Thanks to the interdisciplinary skills of our team, consisting of specialists in the fields of legal, tech, tax, and SSH (Social Science and Humanities), we can perform extremely detailed and effective investment analysis for the digital and innovation sector.

Our approach to investment analysis comes from the application of Legal Engineering to Investment Analysis, we will explain in detail what it consists of.

How investment analysis works

The Investment Analysis is performed by evaluating the investment in terms of income, risk and resale value. Specifically, the factors that are examined in the analysis are:

  1. Risk
  2. Cash Flow;
  3. Resale Value.

While standard investment analyses manage to perform Cash Flow and Resale Value analysis without any problems, they hardly manage to perform an effective and detailed risk analysis.

An accurate risk analysis is essential to be able to correctly evaluate an investment because if the risk of the investment is too high, a loss is very likely.

Effectively analysing the risk, however, is not easy; all factors related to the investment must be correctly assessed:

  1. the company understood as business model, revenue model but also the combination of all the technical and technological factors involved in the production process;
  2. the market;
  3. the industry;
  4. the regulatory ecosystem and much more.

The importance of risk in investment analysis

Complexity of investment analysis in the digital and innovation sector

This fundamental requirement for the Investment Analysis becomes even more complicated in the event that the target company operates in the digital industry or, worse still, in innovation, since, within the risk analysis, all the aforementioned elements will have to be evaluated in relation to very technical areas and issues such as those related to programming or, future industry legislation involving very heterogeneous aspects (e.g.: the AI Act involves elements of Law, Technology, Psychology and Sociology).

Legal Engineering is the solution to this problem. It is a result-oriented process based on an integral understanding of the risk, through the involvement of interdisciplinary professionalism, to define a clear and comprehensive analysis. The scope of Legal Engineering’s application to Investment Analysis is very broad and varied, and is applicable to the processes that characterize large international groups as well as small innovative start-ups.

The application of Legal Engineering to Investment Analysis is therefore the ideal tool for the evaluation of investments in start-ups or companies operating in the field of digital and innovation.

The Application of Legal Engineering to Investment Analysis