Service definition
What is Financial Feasibility Study?
Financial feasibility is the backbone of any investment decision. It measures project profitability through standard indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), and Return on Investment (ROI), as well as determining the break-even point and the project's payback period. It also includes defining financial statements for ten years and financial risk analysis.
Main benefits
- Accurate knowledge of expected profitability
- Determining the break-even point
- Estimating liquidity needs
- Objective comparison between investment alternatives
Use cases
- Evaluating a project before investment
- Comparison between several investment opportunities
- Presentation to banks and funds
- Making the decision to expand or liquidate
Why it matters
Why you cannot ignore this stage
Added value
- • Avoiding investment in unprofitable projects
- • Determining the required working capital
- • Choosing the optimal financing structure
- • Convincing investors with documented numbers
Common mistakes
- • Exaggerated revenue assumptions
- • Overlooking hidden costs such as taxes and maintenance
- • Not calculating working capital
- • Ignoring sensitivity analysis
Risks of neglect
- • Running out of liquidity before breaking even
- • Actual loss instead of expected profit
- • Inability to repay financing
Our methodology
How we work step by step
- 01
Project idea study
1 daysReviewing project files and determining the work mechanism.
- 02
Price quote
1 daysClarifying project details and work duration.
- 03
Execution phase
10-15 daysWorking on the submitted details and starting the study implementation.
- 04
Delivery phase
2-3 daysDelivering a draft of the feasibility study and holding a meeting to discuss the draft.
- 05
Follow-up on the study after delivery
1 yearFree follow-up on the study for a full year after delivery.
Scope and deliverables
What exactly will you receive?
Project capital costs
- Land purchase costs
- Building and construction costs
- Machinery and equipment costs
- Furniture and equipment costs
- Vehicle and transportation costs
- Software and application costs
- Contingency reserve
- Pre-establishment expenses
Annual operating costs
- Project workforce expenses
- Operating supplies costs
- Project needs for utilities and services
- Administrative and general expenses
- Marketing costs
- Rent costs
Summary of total project cost
- Working capital
- Invested capital
- Financing schedule
- Project revenues
- Total variable costs
- Fixed costs volume
- Estimated income statement for ten years
- Estimated balance sheet for ten years
- Estimated cash flow statement for ten years
Financial and economic evaluation of the project
- Financial analysis
- Break-even point
- Present value of cash flows
- Internal rate of return on investment
- Project payback period
- Summary of financial indicators
- Sensitivity analysis (financial risk analysis)
Sector expertise
Industries we serve
Track record
Metrics we are proud of
Before you begin
Questions clients ask
What is IRR?
How long does the study take?
Your next step
Ready for the next step?
Get a custom quotation within 24 hours.
Our team reviews your requirements and returns with a clear, transparent work plan.