Investment Companies Looking to Invest in Video Production Companies

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Advertising and promotion is evolving at a rapid pace, today even small sized industries are looking at video marketing. Several surveys prove beyond doubt that a video based promotion has a greater impact than conventional promotional techniques. Hence video production and motion graphics services are in huge demand and certain video production companies are boasting about a three digit yearly growth rate. This presents a huge opportunity for those who learn video creation software like Adobe AfterEffects and so on.

Established video production companies also attract huge investments.  The highly reputed investment firms are looking for the right companies to invest in. After analyzing the performance of the company, EBDITA, debt, future growth prospects and market share the group will create an investment packaging for the investors. This will help the investors to make a well informed choice. The following are other important performance metrics that the group is looking for.

  • They will first evaluate the business model by analyzing all the services offered, they will then identify the target consumer.
  • They will then study the assets of the company like the equipment, facilities and other movable and immovable assets. They will also look in to the quality of human resource.
  • They will then look in to the start – up capital and the break-up of the start up capital like loans, investments, personal savings or grants. This will help them to evaluate the interest component payable for the capital.
  • The most critical part is the service/product offering; though video production is predominantly a service based business, there are several companies that develop state of the art video production software. Such products are invaluable as the recurring expense associated with product development is relatively very less.
  • Other assets like studio, where the company conduct the voice-overs and editing is also taken in consideration. A live production studio with option for on-site filming and the option of renting these facilities will also be considered. As such an option will add value to an investor.
  • Last but not the least, the Brand Identity of the company. This is an asset (good will asset) and strong brand identity is extremely important as the video production company predominantly caters to those who are looking to improve their own brand recall.

Reputed investment firms, after collecting all these information will create investment packaging and will present it to the investors. In addition to the video production companies they are also looking in other new technology companies with high growth opportunities.

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