Haynes Path team develops Feasibility Studies Models for its clients to facilitate evaluation of growth or investment opportunities from Strategic, Financial, Commercial, Operational and comprehensive Risk Management perspectives.
It typically involves an analysis and evaluation of a proposed project to determine if it:
- is technically feasible
- is feasible within the estimated cost, and
- will be meeting the organizational financial thresholds
Furthermore, Feasibility Studies are usually required to obtain financing for the business from Banks, lending institutions and investors.
Feasibility Studies depend on the industry and project studied, critical success factors for that project, methods chosen to conduct the study (primary and secondary research), and Budget allocation. Key components of a Feasibility Study are:
- Existing situation and justification for the spend in line with strategic objectives
- Detailed Budgeted Cost and estimated benefits duly validated
- Risk Analysis and Risk Mitigation strategies from financial, commercial, operational, technical, regulatory and key stakeholders’ perspectives
- Historical data and projected financial model (P&L, Balance Sheet, Cash flows)
- Assumptions (financial and non-financial) supported by authentic information based on historical performance, market study, competitive landscape analysis and industry outlook
Evaluation of the project based on Financial parameters (IRR, NPV, Payback Period, Weighted Average Cost of Capital) and Non-financial parameters (regulatory, productivity, contractual requirements)