FINANCIAL FEASIBILITY STUDY
Since 1983 we have carried out financial feasibilities / business plans / market feasibility - studies for clients (other than for our own projects) and have established working relationships with renowned 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 feasibilities are almost completed and clear indications are obtained that indeed the project has a definite market capture.
Whilst the Financial Feasibility Study's main components are determined by the requirements of future lending parties (return of capital rates, etc), it nevertheless serves to test the market findings and reveals whether in fact over time the researched market could be supported in financial terms.
The project must stand (financially) on its own.
To prevent a typecast study, we list part of the brief to be complied with ...
Some of the described requirements will have been covered already in the Market Feasibility Study, but in the event of not commissioning a market research document, the Financial Feasibility Study will have to be presented as a Business Plan, incorporating research needed in marketing terms.
Investors prefer to have separately or integrated evidence of independent Marketing Study research results. It is furthermore advisable to always obtain a separate Market Feasibility Study, the results of which are used for the establishment of an operational marketing plan by the project’s management throughout the construction stage, and thereafter into the operational period.
The Financial Feasibility Study computation must (at all times) reflect the documented Market Feasibility Study research results.
A sound Financial Feasibility Study / Business Plan assembled with our expertise and advice would ...
- monitor quality and standards of performance
- ensure effective control of resources
- provide information on key areas for management decision-making
- indicate profitable financial returns
- contain an investors / lenders exit strategy
- ensure fast financing results
- contain a financial risk sensitivity analysis
