Feasibility Studies (for new projects and expansions)
We conduct an economic feasibility study to identify the project economic feasibility by preparing the following studies:
Market study
A market study is prepared to clarify the project description in general, its justifications and objectives, and to analyze the most important factors affecting the current and expected demand for the project services; study the nature and conditions of the current competition; identify the most important competitive advantages that should be offered to obtain the expected revenues during the next five years; in addition to analyze the most important available and expected marketing opportunities and threats of the project in order to estimate the volume of revenues and the expected market share of the project in the coming years.
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Technical Study
Full coordination takes place with the client to provide us with all necessary data and information to conduct the technical study, which includes studying the technical and regulatory conditions required by the relevant authorities; estimating investment costs including the construction costs, the cost of purchasing fixed assets such as devices, equipment and furniture; in addition to pre-operating expenses, as well as working capital requirements of the project. The technical study also includes clarifying the proposed organizational structure for the project and its manpower needs during the project period; estimating the operating expenses (salaries, wages, consumption expenses, maintenance and operation, and other expenses); as well as estimating the time required to establish and start the project.
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Financial Study
We conduct a financial study for the project to identify its economic feasibility, after taking into account the future financial forecasts related to the profit and loss account and the estimated budget for the project during its period, this will be according to the results of the market study and the technical study that was previously prepared. The financial study also includes preparing the project’s estimated financial statements, which include: the estimated income statement, the estimated financial position statement, and the estimated cash flow statement. The financial study will also cover the most important financial indicators and a brief explanation of the most important results and financial indicators.
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Feasibility Study Results
According to the results of the proposed project study, financial indicators, that show the economic and financial feasibility of the project, are calculated including analyzing the project cash flows and calculating the project feasibility indicators (Internal Rate of Return, Payback Period, and Net Present Value), in addition to the project sensitivity analysis to measure its sensitivity to changes in the most important items of the cost and revenue.