Financial Feasibility Study
One of the best ways to determine if a potential venture is financially feasible is to conduct an independent analysis of the expected financial results.
Financial feasibility studies often involve a market study or demand analysis to help determine and support assumptions regarding anticipated revenues. This helps company management decide whether or not to commit additional resources or borrow funds to finance a venture.
How we can help
At AEPI, our financial feasibility studies help you address a number of business start-up or expansion situations. These can include the feasibility of new entities, acquisition of an existing business, introduction of a new product or expansion of plant capacity. While we tailor our studies to meet your unique needs, each study includes the same basic elements.
For the market study or demand analysis portion, we:
- Conduct market research to identify consumer or buyer attitudes and preferences
- Define and describe the market
- Document the competitive situation
- Determine likely market potential and demand
For the financial feasibility portion, we consider:
Financing and capitalization
- Facility and contruction costs
- Personnel requirements
- Revenue and operating expense analysis
- Cash flow and debt capacity
Our report typically includes:
- Prospective balance sheets
- Prospective statements of revenues and expenses cash flow, and debt service coverage
- Assumptions underlying the prospective financial statements
- Results of the market study or demand analysis
There are several benefits of a financial feasibility study:
- Identifying market and financial factors that may have been overlooked in earlier development and conceptual stages
- Assuring potential lenders and investors that there is a reasonable basis for the assumptions used in the study
Why AEPI
We understand you face unique challenges in determining the financial feasibility of a potential venture. With this in mind, we offer a customized, flexible approach that’s based on your needs.
With a low managing director/director-to-staff ratio, we give you senior-level attention and personalized service. And we are structured to align with key industries? An important consideration in staffing engagements.