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Feasibility Studies

Local, state and federal government clients, Government Business Units (GBEs) and not-for-profits, often require the results of Due Diligence to be documented in a stand-alone report called a Feasibility Study, so that it can considered by a Board, or Top Management before proceeding with a decision. 

Typically, entrepreneurs, business owners, venture capital funds, private equity funds do not require formal feasibility studies.

A feasibility study analyzes and reports upon all of the critical aspects of a business or organisational project to determine the probability of completing it successfully, in line with the objectives and goals of the organization promoting the project. 

It usually weighs up the cost of the project against the expected benefits (i.e. cost / benefit analysis) and like Initial Deal Assessment and Due Diligence is undertaken as an early step in the commercialisation / development process.

 

 

 

 

 

Components of a Feasibility Study

Typically, there are six key components of a feasibility study:

  1. Economic
  2. Sociodemographic
  3. Marketing
  4. Technical 
  5. Management
  6. Financial

These components are often weighted differently in terms of importance based on the context, objectives and targets of the organization promoting the project.

Benefits of a project or venture do not have to be financial based metrics like profit or wealth creation. Benefits can be measurements like economic growth, spend within the community, the achievement of social outcomes, employment growth, awareness, attraction of tourists, improvements in the natural environment and educational outcomes.

Search Case studies and Insights for Evahan's experience in Feasibility Studies.