Our experience in financial feasibility and valuation covers a wide range of industries and transactions, bringing the added value of our insight into key factors of relevance to the feasibility or valuation of a project or company.
We believe that solid financial due diligence is the best guarantee of a successful investment. Planning professionals approach financial feasibility assessments and valuations from an investor perspective. Whether conducting a financial feasibility study for a new venture or project, or a valuation assignment in relation to a potential M&A transaction, we make sure that all variables of relevance to the eventual financial structuring of the prospective transaction are taken into consideration.
Our financial due diligence process is extensive and thorough.
For an existing company, this process involves the evaluation of the company´s historical and current financial standing, its management and its future financial requirements and performance. This process involves working with the company´s management and auditors to ensure an accurate assessment.
For a green field project, financial due diligence includes identifying and monitoring the completion of all project milestones necessary to the execution of the equity and/or debt transaction and assessing the reliability of the project’s development cost and timeframe, in addition to evaluating its proposed management and future operating and financial prospects. We develop financial models that are tailored to the project’s specific needs, allowing us to run detailed financial projections, scenarios, and sensitivities. The detail involved in our financial projections is a reflection of the thoroughness of our due diligence and renders our assumptions easily subject to the test of “common sense”. It also allows us to advise the client in deciding on the impact of various development decisions, including assessing the qualitative and quantitative impact of decisions related to the fulfillment of certain project milestones and advising them in related negotiations.
Whether for an existing company or a green field project, the assessment of a client’s current or potential operating prospects requires an in-depth understanding of the market in which it operates and of its current or prospective positioning within it. While our extensive transaction experience has provided us with a thorough understanding of many sectors, we work with market consultants that have specific expertise in the relevant industry, ensuring consideration of all market and operational issues that may have an impact on the investment at hand. The client also benefits by having access to expert insight as to state-of-the art developments and practices in the given industry.
We draw on our extensive network of relationships with local, regional, and international market consultants to assist the client in selecting the market consultant most suitable to the assignment. Our involvement here also extends to developing the market consultant’s scope of work, providing the market consultant with local market insight, monitoring the market consultant’s progress, and supervising on an ongoing basis the quality of the deliverable to be submitted by the market consultant.