Financial Feasibility Study
We have been conducting financial feasibility/business plan/market feasibility studies for clients (other than our own projects) for decades and have developed working relationships with reputable financial institutions, banks, insurance syndicates, money management funds and other types of lenders.
The financial feasibility study for a project should be commissioned once the marketing feasibility studies are almost complete and there is clear evidence that the project does indeed have a definite market capture.
While the main components of the financial feasibility study are determined by the requirements of future lenders (return on investment, etc.), it is nevertheless designed to test market outcomes and demonstrate whether the market being studied could actually be financially supported over time.
The project must stand on its own (financially).
To avoid a typification study, we list a portion of the brief that must be met…
Some of the requirements described are already covered in the market feasibility study. However, in case no market research document is commissioned, the financial feasibility study must be submitted as a business plan containing the research results required with regard to marketing.
Investors prefer separate or integrated evidence of independent market research results. In addition, it is advisable to always obtain a separate market feasibility study, the results of which will be used by project management throughout the construction phase and thereafter into the operational phase to prepare an operational marketing plan.
The calculation of the financial feasibility study must (at all times) reflect the documented research results of the market feasibility study.
A sound financial feasibility study / business plan prepared with our expertise and advice would…
- Monitor quality and performance standards
- Ensure effective resource control
- Provide information on key areas for management decision making