Before companies make a decision on whether to move forward with a proposed investment plan, the feasibility of the investment has to be taken into consideration with regards to several different factors in order to determine whether the investment will fulfill the objectives of the project owners. Hence, conducting a feasibility analysis is considered a crucial step in the decision making process. 

In which scenarios, a financial feasibility study is needed?

1) Creating a new product or service line

2) Purchasing a new manufacturing facility

3) Establishing a foreign subsidiary

Consulta provides a sound basis for decision making by providing impartial and reasoned opinions from financial perspective concerning the viability of the potential projects. Carrying out a financial feasibility analysis requires a strong foundation in both the technical and financial aspects of the project. If the client is looking to raise money from a financier or investor to finance the proposed project, it is crucial to use precise information in the analysis as any uncertainty determined by the capital provider can hurt your probability of having access to that capital. Therefore, clients entrust Consulta to carry out financial feasibility studies with utmost care and accuracy.

Consulta’s analysis is not just about pressing buttons on a model to populate results. In order to construct an accurate assessment as possible, Consulta will gather data from the project’s owners and outside sources, and often specialists within the field of the project to develop a base case financial plan. This will involve Consulta to estimate the total capital requirements, equity and credit needs, expected costs and returns. Besides these parameters, the demand supply scenario will be evaluated by Consulta through execution of a market study. With the goal of providing a unique perspective into project risk related to changes in input parameters, Consulta will conduct a sensitivity analysis to showcase how much output values change with respect to a given change in the input parameters.