This study aims to explore how banks evaluate investment decisions towards SMEs, through a real option approach. After analyzing 9 interviews with business advisors from four different banks, illustrations show that banks indeed use a real option way of thinking, without being aware of it as well as put more weight in certain factors namely the repayment ability. Moreover, the relationship factor shows an interesting relevance during investment evaluation towards SMEs, as better relationships lead to lower demands on factors of evaluation. In brief, the study contributes to the theory of real options as well as of practical essentiality to banks and SMEs.

The aim of this thesis is to evaluate Československá obchodní banka, a.s. The thesis consists of two main parts. The first part is theoretical and introduces the specifications of banks and the description of evaluation methods. The second part is practical and presents the evaluation itself. In the practical part, the subject of the evaluation is described and the financial and strategic analyses are performed. Based on the financial and strategic analysis, the financial plan is created. At the end of the practical part, the evaluation of Československá obchodní banka, a.s. is presented.