In actuality, the facilitation of the Formal Feasibility Analysis, for any project, is intended to be the end product of all of efforts in Team Creation, Development, Permitting, and Due Diligence. If all the other efforts have been completed properly, then the probability of securing a supportive, even complimentary, and accepted formal third-party Feasibility Report is dramatically improved.
A successful Feasibility Report begins with selecting the right third-party independent specialist, in the applicable discipline, to prepare the report. The first step in making this selection is to consider the intended audience of the Feasibility Report. If the Report is to be part of Private Placement Memorandum where investors will be relying upon that report when making investment decisions, then those feasibility experts with experience in the private investment community would be a good fit. Alternatively, if the Report is intended for institutional investors, then an expert with a history of providing reports for institutions would be wise.
Next, find an expert that has specific experience in the industry that is relevant to your project. And finally, get samples of the reports that the expert has provided on other projects.
One of the key issues in Feasibility Reports is timing. If you engage the expert and ask for the Report before you have assembled the data that is needed for the Report, the costs to provide the report will increase, as the expert must review documents that are revised repeatedly, or re-educate themselves on a project after waiting for months for key agreements to be negotiated and finalized. The more complete the development of the project, then the quicker and more efficiently the expert can deliver its report.
The scope of the Feasibility Report is crafted to meet the needs of the Project and any third-parties requesting the report. So, there is no universal scope of work for all Feasibility Reports. However, in the experience of the FourPoints principals there are some factors that are generally seen in these reports. The Scope of Services of a Feasibility Analyst will often include the following:
- Project Site Review
- Environmental Site Review
- Overall Project Consistency
- Project Technology and Design
- Review Engineering, Procurement and Construction
- Review Project Cost Estimates
- Review O&M Plan
- Review Project Agreements and Third-party Interfaces
- Review Pro Forma Financial Model Assumptions
- Review Permits and Licenses
The importance of the Feasibility Report cannot be understated. It is often the turning point in whether a project will be funded or abandoned. FourPoints principals have the experience in identifying, engaging and supporting Feasibility experts so that a thorough and valid Feasibility Report is produced.
Most project funding plans are usually highly customized loans and/or investments. FourPoints has, and brings to each project, the funding relationships that fit those highly specialized needs. The FourPoints executives have each worked for more than 30 years with lenders, funders and investors of every type, developing relationships over years of cooperation and successful funding.
A team of experienced executives who each bring their unique skill, knowledge and scars, to find solutions for the development, construction, funding and operational needs of each Project.
Focus on funding
While we can’t guarantee that funding is always available, we can help you evaluate the many private and public alternative financing options.