We follow a process-driven approach to know the strategic and financial viability of an opportunity. Our investment opportunity assessment involves a deep dive assessment of historical financial performance, validation of assumptions and forecasted performance, returns and sensitivity analysis, strategic importance, and competitive edge analysis. Our services enable investors to make informed decisions by providing thorough analysis and insights into potential investments.
We compare the cash outflows in terms of capital expenditure, working capital needs, and other funding for any other expenses required during the duration of investment versus the cash inflows expected from day-to-operations revenue and any capital gain at the end of the investment. We employ industry-acceptable techniques, including Internal Rate of Return (IRR), Net Present Value (NPV), and Payback Period, in addition to checking numerous scenarios and performing sensitivity analyses on various situations.
The overall objective is to have a comprehensive report backed by realistic assumptions to assess the viability and potential risks associated with the investment opportunities.
Below are some considerations for opportunity evaluation:
- Evaluating the target economy and industry
- Evaluating the financial viability of the investment
- Assess the risks associated with scenario analysis
- Compare the current opportunity with similar alternative investments and industry benchmarks
- Comprehensive report of opportunity evaluation