Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

How can you realistically assess a feasibility study?

Hints: Basic indicators.* Substitute Investments . * Opportunity factors. *

user-image
Question added by Ahmed Ibrahim Mohamed Khalil Kashif , Head of Planning and Cost Control Unit - Consultative Office , Jarash International Specialized Hospital
Date Posted: 2013/10/23
Ahmed Elkady
by Ahmed Elkady , CEO Chief Executive Officer , Modern House Contracting & Real Estate

 

From my own experience, the false/inaccurate feasibility study is one of the most important items that lead to the failure of the new investment.

 

Sometimes the feasibility studies are meant to be more optimistic in order to convince the investors or the banks that are going to share in the investment.

 

In order to assess the feasibility study, some checks have to me be made, they are:

 

1-      Check the financial statements of the companies who are working in the same business. This can be retrieved from the data of the stock exchange for the listed companies.

 

2-      Ask for the advice from the banks or the financial auditors about the Key Performance Indicators of such type of investment.

 

3- Collect the similar indicators from the related governmental affairs such as the chamber of commerce or relevant syndicates.

Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Assess all the critical areas of a feasibility study like:

 

1. Technical

2. Operational.

3. Selling

4. Marketing

5. Financial 

6. Human Resources and

7. Information Technology

 

More Questions Like This