ECONOMIC FEASIBILITY STUDIES

Feasibility studies provide top management, financial institutions and investors with an independent third-party evaluation of the costs, benefits and risks associated with investments in new ventures or improvements to existing operations.

BECK staff members have completed numerous economic feasibility studies and analyses of both new construction and major modernization projects for forest products-related businesses.  These studies typically evaluate the following factors:

• Raw material availability and cost

• Target markets, product lines and market trends

• Processing equipment capabilities and projected performance

• Capital costs

• Expected manufacturing and overhead costs, including labor costs and associated staffing requirements

• Projected yields for both primary products and by-products

• Assessment of competitive position and key competitors

• Management experience and expertise

• Overall financial performance and sensitivity to changes in key variables impacting profitability

• Project risk factors