Brickstone is a leading Research based Project Finance Advisory and Asset Management firm, helping sponsors of projects finance large-scale asset-backed projects. In executing our advisory process, we combine the required technical and financial skills to navigate the complex structures which characterize today’s financial markets and an unsurpassed creative approach that differs from the traditional consulting firm.
We are very strong in developing market research and business plans for Large Scale Projects. Our analysts have written a number of feasibility study documents within our chosen sectors such as Agriculture, Heavy Industries, Commercial Developments, Housing, Transport Infrastructure, Energy and Natural Resources. in addition We have written feasibility studies for our Core Sectors of industries and businesses requiring project finance including new development, expansion capital, product launching and much more.
When is a Feasibility Conducted?
We typically assist our clients in conducting a feasibility study for their project prior to a project starting or investing any money in the project. We advise our clients (project sponsors) and their investors to make sure that any project they plan on developing is “feasible” on a risk-weighted basis, and developing a study showing this feasibility is the main reason for writing this article (which should help save needed financing and time in the long run). A feasibility study includes such important information and data as the funding needs to complete the project, the market opportunity, government regulations, risk factors, strength and weaknesses, the management team and the financial forecast of the company. Although a feasibility study somewhat sounds like a business plan, the reports tend to be many times longer with more vital information on the market and financials.
Brickstone Partners team is known for its keen insights into any given market with our core sectors and our detailed bankability assessment regarding a project’s viability. We work on a personal note with our clients to ensure that each project is specifically tailored to the company’s needs.
Various Types of Feasibility Study Reports
Our Research and Intelligence team can assist with any of the types of feasibility studies below. Every separate study has its own characteristics but there are more similarities among them than there are disparities.
4 Main Feasibility Studies
1. Financial Economic Feasibility
An economic feasibility study is conducted when a project sponsor wants to find out if the proposed amount of capital and financing is enough to complete a project successfully. The Comprehensive business plan may have a subdivision called the options analysis, in an economic feasibility study it will be deeper detail and have more statistics and numbers in the financials.
2. Project Development Pre-Feasibility
This is the most common feasibility study that we at Brickstone Partners write for our Project Sponsors. Project Development Pre-feasibility reports include such features as the project base case, CAPEX, impact on the surrounding market and environment and natural habits and general impact on businesses in the area as well as the overall market opportunity for the Project. Large-scale developments such as projects in Agriculture, Heavy Industries, Commercial Developments, Housing, Transport Infrastructure, Energy and Natural Resources require Project Development Pre-feasibility studies before land acquisition and development.
3. Comprehensive Feasibility
A comprehensive feasibility study is an all-inclusive report that takes into consideration some of the most rational project finance practices any sponsor should implement before undertaking any project. The comprehensive feasibility includes data on commercial issues, economic and cultural impact and the PPP structure and more. Comprehensive studies can be included in our business plan features especially if a client wants a very long and detailed analysis to aid the due-diligence required by lenders. The comprehensive feasibility study is also referred to as the Market Study & Feasibility study and together with the Project Business report is the most common feasibility study we offer for our clients.
4. Market Feasibility
The marketing feasibility, studies the market impact and penetration, such as the demographics, target market, product testing and more. Prior to launching a project into the market, whether in a local, regional, national or global environment, a viable study on the market is imperative.
Why Write a Financial or Market Feasibility Study?
Getting a consultant to write a professional feasibility study is good business practice, especially for companies that intend to get funding for Large projects and want to have the knowledge readily available to make an informed decision about a project’s viability. By creating such a feasibility study, for instance, for a Large Scale project, you will be able to navigate potential risks during development and save needed capital in the process, as well as possibly discover new opportunities in the market.