“Is this a sound investment”? Our clients regularly confront this basic question that, if not properly answered, can be costly.
Several years ago, voters in a Midwest county approved the increase in local sales taxes to finance construction of two professional sports stadium. Residents were persuaded, in-part, by a study that confirmed the project’s feasibility.
Years after construction of the stadiums, sales taxes did not materialize as projected in the feasibility study. The burden of serving the bond issue severely impaired the county’s financial position. Attempts to redress the problem included restructuring the debt and a subsequent tax referendum that failed.
Conducting a feasibility study is a necessary business practice before investing in a proposed venture. This is particularly so when competing alternatives. We bring to these critical decisions, expertise in finance, a depth of understanding about business, and commitment to thorough analytics. As noted above, the underlying assumptions that factor into the study of a proposed venture are as critical as the analytics.
Our BayLouVETTM methodology captures your underlying assumptions and parameters of a proposed venture, tests proposal sensitivity against plausible scenarios, and provides a recommended course of action. To either: proceed as planned; proceed subject to certain revisions; or reject the idea of venture’s feasibility.
The BayLou way of performing in-depth analysis of a proposal’s feasibility is deliberately rigorous so as to stand-up to the highest level of client and third-party stakeholder scrutiny. conducting feasibility analyses We consider the array of relevant factors, including: general economic conditions, technology, regulations, market trends, competitive environment; and internal organization dynamics.
We apply BaylouVET to a wide range of business decisions such as:
• New business venture
• Technology deployment
• Competing projects
• Social service financing
• Transportation (e.g., multimodal)
• Site selection
• Redesign of operations/supply chain
• Real estate investment
• Public/private partnership development
• Organizational restructuring
• Buy vs. Lease equipment acquisition
• Operations and supply chain redesign
• Contract analysis (e.g., competing ventures, alternative structuring)
• Jurisdiction realignments (e.g., annexation, regionalism)