Feasibility Studies

Feasibility Studies

A comprehensive independent third-party feasibility study or detailed and comprehensive due diligence report is indispensable in securing capital.  We consider that presenting a well-balanced risk profile to potential investors and/or lenders is imperative.  By analyzing and compiling economic, marketing, technology, management, and financial risks of the business or project through a written independent document, our clients gain additional credibility that internally-generated company materials cannot provide. 

Investors and lenders tend to review the project more rapidly, and in many cases, more favorably due to a complete and independent presentation.  For international projects, we also provide the additional risk analysis of political and social structure, terrorism, monetary policies, infrastructure, logistics, and raw materials analysis, as well as other locally identified risks.  For companies that need re-financing, we have found that a detailed feasibility study has been instrumental in obtaining new financing.

Our independent feasibility studies are also written to the USDA guidelines, and the clients that we have conducted these studies for have experienced continued success for the USDA 9003 Biorefinery Loan Guarantee Program, the USDA 9007 REAP Grant and Loan Guarantee Program, the USDA Business & Industry Loan Guarantee Program, and the USDA Value-Added Grant Program.

The feasibility study process involves making rational decisions about a number of enduring characteristics  of a project, including:

  • Economic feasibility risks - does the site have the infrastructure, people, and resources to adequately perform the business tasks?
  • Technical feasibility risks- do we 'have the technology'? if not, can we get it? Will the project be commissioned on time and within the budget?  
  • New technology readiness risk - Is the technology commercially feasible, or does more testing need to occur?
  • Market feasibility risks- evaluation to include sales, competition, and other outside market influences.  What is the competitive advantage for the business?  
  • Management risks - proposed operations/management structure and management method, employee retention, new hires.
  • Financial feasibility risks - evaluation of all financial inputs to the proforma, historical financial analysis, cash flow sensitivity analysis, equity requirements, and key financial ratios are examined against industry reports.

For international projects, we also provide the additional risk analysis of political and social structure, terrorism, monetary policies, infrastructure, logistics, and raw materials analysis, as well as other locally identified risks.  

We have a flexible retainer fee schedule, and can work with clients on a per-project contract arrangement or on an hourly fee basis as desired.  Please contact us for more information and a free, no-obligation consultation at 866-461-0851 or sales@westartrade.com.