Partner Group Association presents
PET FOOD PRODUCTION IN BALTICS
ALREADY PREPARED DEAL WITH FINANCES INJECTION
Vilnius-Odessa-London 2024
Proposal to a Potential Partner
Roadmap for Establishing a Joint Venture for Dog Food Production
This document presents a detailed roadmap for establishing a joint venture for dog food production in Latvia.
The plan includes stages from company registration to market entry and further business development. The document provides information on financial costs, timelines for task completion, and expected results at each stage.
Partner Group Network
Partner Group Network is the Association of professional lawyers, financial specialists, consultants, auditors and managing partners of various funds.
The PGN (Partner Group Network) project specializes in financing commercial business projects, as well as short-term financing of working capital for companies and organizations operating in various fields and regions.
Denys Yuzhakov,
UK office +441615540150
VITALIY DRUT
Ukrainian office
TEL: +37069363474
Lithuanian office
Arvydas Širvinskas
Tel.: +370 627 00 750
Ready-made deal for pet food production in Latvia
Dear potential entrepreneur/investor.
We, as Partner Group Network team, offer you a ready-made deal for the establishment of a joint venture for the production of pet food in Latvia.
The premises, equipment, and state financing of the enterprise at a low interest rate have been agreed upon. If interested, please study the Roadmap below.
Stage 1: Preparation and registration of the joint venture

1

Registration of the joint venture
Task: Registration of a new company in Latvia with the participation of Partner 1 (United Kingdom) and Partner 2 (Latvia).
Cost: 1,100 euros.
Timeframe: 2 weeks.
Result: Creation of a legal entity with the following equity distribution:
Partner 1 - 49%,
Partner 2 - 51%. (Partner 2 invests 580,000 euros within the project).

2

Evaluation of Partner 2's assets
Task: Evaluation of Partner 2's production assets to be contributed to the joint venture's share capital.
Cost: 2,000-3,000 euros. Timeframe: 3 weeks.
Conducted by an accredited licensed appraiser.
Result: Determination of the value of the assets, entry of the amount in the official state register of the share capital of the established company in Latvia.
Stage 2: Market Analysis and Business Plan Development (Part 1)
Market Analysis
Objective: Conducting a market analysis for the procurement of raw materials and the sale of finished products.
It is necessary to conduct a detailed analysis of raw material supplies and possible alternatives from different manufacturers, in order to reduce risks when loading production capacities to ensure planned production of products.
Price: 3600 euros
On the other hand, conduct an analysis of the sales of finished products in Europe and other regions.
Price: 3600 euros
Total: 7200 euros.
Timeline: 2 months.
Result: Gathering information on target markets and potential suppliers.
Important!
The conducted market analysis of raw material supplies and product sales will be a fundamental factor for decision-making and assessing the viability of the project, and will also be one of the main sections in the further development of the business plan.
Stage 2:
(Part Two)
Developing the Business Plan
Developing the Business Plan
The business plan is developed based on the previously conducted market research and analysis of raw material supply and product sales.
Objective: Develop a detailed business plan for the joint venture.
Cost: 7,300 euros.
Timeline: 3 months. (payment in two instalments)
Result: A completed business plan, including a financial model and forecasts.
The business plan is the foundation for determining the necessary loan amount and the business development strategy.
Stage 3: Obtaining Financing (Part 1)

1

Submitting documents for a loan
  1. Task: Preparation and submission of the necessary documents and financial calculations to the state investment company ALTUM.
  1. Cost: 3,500 euros.
  1. Timeline: 1 month.
  1. Result: Documents submitted to ALTUM for loan consideration.
Stage 3: Financing from ALTUM (Part 2)

1

Obtaining a loan
  1. Objective: Signing a loan agreement on favourable terms.
  1. Loan amount: Determined based on the business plan, focusing on the approximate valuation of Partner 2's assets amounting to 580,000 euros.
  1. Lending terms:
  1. Interest rate: 2.5-4% per annum.
  1. Working capital: term of 2-5 years, covering 85% of the collateral amount.
  1. Equipment: term of 7 years, covering 90% of the collateral amount.
  1. Commission of the project developer Invex Fondi SIA: 10% of the loan amount upon receipt of the funds.
  1. Result: Obtaining financing for the implementation of the project.
Lender
ALTUM, the Latvian Development Finance Institution, is a state-owned company that provides financial support to businesses and households in the form of loans, guarantees and investments in venture capital funds. Financing is provided from EU and national budget funds with the aim of developing the Latvian economy and attracting private investment.
ALTUM finances projects in key sectors identified by the state as priorities. The company carefully analyses each application, evaluating the business plan, the applicant's financial situation and the prospects for project implementation.
Important!
ALTUM's special programme to support export-oriented Latvian enterprises provides special financing terms, enabling the receipt of funding amounts from €800,000 to €1,000,000 for a project.
Stage 4:
Project implementation and further development
1
Procurement of equipment and start of production
Task: Procurement of necessary equipment and launch of the production line.
Timeline: Depending on the receipt of the loan and equipment deliveries.
2
Market entry
Responsibility of Partner 1
Task: Organisation of the sales process, marketing campaigns and expansion of sales channels.
Timeline: Gradually over 1-2 years after the launch of production.
3
Monitoring and scaling
Task: Monitoring of production indicators, market analysis and decision-making on business scaling.
Timeline: Continuously, starting from the 6th month after the launch of production.
Partner 2 Assets
Assets
Partner 2's solid financial assets that can be used to secure financing for the joint venture project.
Estimated value 580,000 euros
Production Assets
Partner's production capacities and equipment that can be used to manufacture products for the joint venture.
Location
Latvia
Address Līvānu novada, Jersikas pagasta Gumertgrāveri "Tisa" cadastral No. 7652 003 0178, owner SIA "GLEAR", taxpayer code: 40103467743
Financial Costs
Total: Costs for organizing project financing 22,500 euro
(staged payments based on the specified periods).
Project launch and funding deadlines up to 6 months.
Conclusions
This project provides partners with the opportunity to share resources and knowledge to create a successful business with low start-up costs and the prospect of entering international markets.
Partner 1
Gains the opportunity to participate in the creation of modern production with minimal investment, forming a production base for the development of their international business. Ensures reduced production costs, reduced risks and a significant increase in the capitalisation of their business.
Partner 2
Ensures the loading of existing production assets and the transition to a new stage of business development.
Special conditions
Partner 1 initially does not contribute monetary assets to the authorised fund, but as profits are generated, ensures the filling of the authorised fund to the extent of 49%, with the parties jointly bearing responsibility and sharing any possible risks in the conduct of the joint business!
Project Developer
The project developer is the company Invex Fondi SIA (RIGA/LATVIA) with extensive experience in developing projects in various business sectors.
The company has a professional international team of highly qualified specialists and competencies in all aspects of investment and business consulting.
Invex Fondi will provide the key financial and business solutions necessary for the successful launch and scaling of dog food production in the international market.
During the negotiation process, PGN will accompany you throughout the entire negotiation process, we will help you come to the office of your future partner, and also help you see the location of your future production.
We assist with the registration of a joint venture, negotiations and launch of production, we can be members of the Board of Directors if necessary.
Our fixed budget for organizing negotiations and organizing your trip to the production site and meeting with the partner is 10,000 EUR
Thus, for an insignificant amount of 32,500 EUR, which is necessary for organizing financing, you will receive a completed deal for organizing a joint venture for the production of pet food in a ready-made production facility worth 580K euros, as well as financing the project under the state's preferential program in the amount of up to 1 million euros.
СONTACT:
Please contact us:
Denys Yuzhakov, UK office +441615540150
VITALIY DRUT
Ukrainian office TEL: +37069363474 E-mail: [email protected]
Lithuanian office
Arvydas Širvinskas
Tel.: +370 627 00 750
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