Feasibility study, evaluation and business plan

1. Feasibility studies

It is a comprehensive analysis process to determine the viability of the proposed
project, focusing on Feasibility studies to evaluate the financial, marketing,
technical, and legal aspects to determine whether the project is worth investing in
or not.
Any founder carries A new project with great moral and legal responsibility to the
official authorities and from Before the financial institutions that he may resort to
to arrange the necessary financing to implement his project; which requires
ensuring the economic feasibility of the project and identifying its various risks
before starting to implement it.

In this regard, the study of economic feasibility aims to:

– Identifying the marketing opportunities available to the project and the
extent of the market’s need for new competitors to enter – Identifying the marketing opportunities available to the project and
estimating the size of its expected revenues from various sources and
activities on a sound scientific basis supported in a neutral professional
manner. – Preparing the financial evaluation of the project by identifying the estimated
investments of the project and its various sources of financing and
identifying the internal rate of return on the investment – Identify the most important risks that can be faced by the project and the
common people that can be taken to reduce the degree of the project’s
vulnerability to these risks

Tasks for preparation study feasibility

 – Numbers study to the market

– Numbers study Artistic

– Numbers study Financial

– Preparing financial evaluation and economic feasibility

What is the importance of studies Feasibility for investor

– Clarify project ideas and details – Helping investors with choice Among the available opportunities for invest
in the project the right way – Its results are seen as a way to follow the implementation stages – Achieve the objectives on the project – work on Identify appropriate sources of income for the project

2. workplan

It is a document that explains the vision and operational strategy of the project,
including the objectives, Target market, Operations Marketing, expected costs,
and revenues and it is a guide to leading the project towards success.

Setup process steps

• Numbers Study Diagnostic

FINGATE’s team conducts a diagnostic study to identify the most important
strengths and weaknesses related to the following:

  • Legal Aspects and Legal Structure of the Company
  • General strategy of the company
  • Company Organizational Structure and Human Resources
  • Governance system
  • The company’s financial performance level
  • Marketing aspects
  • Financial Systems, Operations and Internal Control
  • IT system
  • Risk Management System
  • Asset and Liability Management System

• Preparing a business plan

Based on the results Study Diagnostic We prepare an action plan to implement
the readiness process practically and scientific that takes into account the
following:

  • Enable senior management to follow up and monitor and measure the performance of the rollout readiness process
  • Prioritize the implementation of tasks related to the launch preparation process.
  • Efficient distribution of responsibilities between the company’s management, the offering manager, and the parties involved in the offering process (such as legal advisor, financial advisor, auditors, etc.)
  • Identify risks and Potential difficulties that may be faced implementing the action plan and developing a plan to deal with them efficiently if they occurandEnsure the availability of the financial and human resources necessary to implement the offering process efficiently
  • Obtaining senior management approval for the action plan and providing the human and financial resources needed for implementation.

• Implement the action plan

The company’s senior management in this field appoints a work team headed by
one of the company’s senior officials who is responsible for:

  • dination between team members
  • Ensure proper implementation of tasks assigned to team members
  • Overcoming any obstacles facing the work team within the company
  • Informing the company’s senior management and its board of directors of the progress in implementing the business plan

3. Financial Evaluation

It’s the process of identify the current value of a company, asset, or project that is
used to determine the selling or buying price and to evaluate financial
performance and potential risks. The financial valuation includes Asset Analysis,
Debts, Future cash flows, and market value to achieve an accurate understanding
of the financial value of the entity under study
Many evaluation methods can be followed to reach the fair value of the
company’s shares. Fingate Company experts choose the best methods that truly
express the location of the fair value of the company being evaluated based on
many factors, including the purpose of the evaluation, the nature of the company
being evaluated, and the prevailing economic and political conditions when
conducting the evaluation process. It may be appropriate to evaluate one
company using one method rather than another, and there may be a method that
is appropriate to evaluate the company at a certain time or for a certain purpose
and is not appropriate at another time or for another purpose.
In general, the evaluation is conducted using one or some of the internationally
and locally recognized evaluation approaches in evaluating companies, which can
be explained as follows:

• Evaluation based on income approach

  • Preparing a market study
  • Analysis of the historical financial performance of the company being evaluated
  • Numbers study for company financial forecasts
  • Estimating the value of a company’s free cash flows
  • Determine the appropriate discount rate and residual value.
  • Estimating the fair value of the company’s shareholders’ equity

• Evaluation based on the assets approach

  • Determine the fair value of the company’s long-term assets.
  • Determination of the allotment to be made corresponding to the company’s potential liability at the valuation date
  • Adjustment of the carrying amount of shareholders’ equity resulting from the revaluation

• Market-based evaluation

  • Profit multiplier method
  • Method of multiplying net profit before interest, taxes, depreciation and depreciation
  • Book Value Multiple Method
  • And others (as appropriate to each company’s circumstances)

The goal of studies Fair value

The main objective of any evaluation is to know the current value of the
company’s net equity. It may be necessary to evaluate the company by specialists
in the event of a company being offered, or the evaluation may be done for the
purpose of merging a company with another company, or for the purpose of one
of the partners relinquishing his share in the company to other partners, or for
the purpose of selling the entire company to new partners. The fair value is used
to help the investor estimate risks according to his short-term, medium-term, or
long-term objectives.