Feasibility Studies

A comprehensive independent third-party feasibility study or detailed and comprehensive due diligence report is indispensable in identifying threats and opportunities, and can is often one of the required documents when securing capital. We consider that presenting a well-balanced risk profile to potential investors and/or lenders is imperative. By analyzing and compiling economic, marketing, technology, management, and financial risks of the business or project through a written independent document, our clients gain additional credibility and additional analysis that internally-generated company materials cannot provide.
Investors and lenders tend to review the project more rapidly, and in many cases, more favorably due to a complete and independent presentation. We also provide the additional risk analysis of political and social structure, terrorism, monetary policies, infrastructure, logistics, and raw materials analysis, as well as other locally identified risks. For companies that need re-financing, we have found that a detailed feasibility study has also been instrumental in obtaining rapid lending approvals.
In addition, we use the QuantaVision Risk Management System to present the risks identified from the root issues, and then compile a comprehensive risk mitigation profile that will not only be applicable from a financing perspective, but can serve as a tool to be used by the company to manage and measure risk to maximize financial performance. This can also be used as a reporting tool for investors and lenders.

Analysizing Feasibility Risks

The feasibility study process involves making an independent review regarding a number of characteristics of a project:
External Risks

Economic Risks include: interest rate, unemployment, oil prices, customer demographics, feedstock supply and availability, transportation, utilities and labor.

Political Risks include: federal and international regulations, public perception, guidelines, policies, standards, changing political climates and key politicians.

Market Risks include: customer needs and priorities, brand image, brand segment targeting, market price volatility, competition from current and future entrants, customer penetration, and sales volume.

Technology Risks

Construction Risks include: permitting, weather and acts of God, commissioning, integration and installation risk, inconsistent production, mechanical failures, spare parts, health and safety, site management and security, materials quality, workmanship quality, and capital cost overruns.

Technical Risks include: technology design and implementation, design error, performance or control deficiencies, safeguarding of intangible assets, data collection, utilization of facilities and resources, capacity utilization, and maintenance.

Environmental Risks include: climate change, man-made disasters, toxic releases, environmental compliance, carbon emissions, energy efficiency, water stress, biodiversity and land use, raw material sourcing, environmental impact, and renewable electricity.

Management Risks

Governance Risks include: authority and responsibility, ethics and integrity, fraud, theft and crime, internally related challenges, authority and responsibility designation, management oversight and metrics, planning for disruptions, contracts, supervision and collaboration, corruption, and instability.

Relationship Risks include: third party due diligence, third party provider delivery, teaming arrangements, and commitment from partners.

Social Risks include: human capital investment, human capital development, diversity, onboarding and training, employee relations, health and safety, and labor supply chain.

Implementation Risks

Financial Risks include: cost and availability of credit, international currency transactions, liquidity, commodity prices, government incentives or taxing schemes, partnership dissolution, customer loss, variable and fixed costs, working capital, and company reputation.

Process Risks include: complex products, services or support infrastructure, integrating data, engagement of key stakeholders, changing workflow requirements, and key stakeholder identification procedures.

Systems Risks include: access control, data storage, security over internal data, account management change procedures, network failure, IT operations and maintenance, and IT security.

Other risk analysis topics include political and social structure, terrorism, monetary policies, infrastructure, logistics, and raw materials analysis, as well as other locally identified risks.
Our independent feasibility studies are also written to the USDA guidelines, and the clients that we have conducted these studies for have experienced continued success for the USDA 9003 Biorefinery Loan Guarantee Program, the USDA 9007 REAP Grant and Loan Guarantee Program, the USDA Business & Industry Loan Guarantee Program, and the USDA Value-Added Grant Program.

Evaluation and Monitoring Criteria

The GBS proprietary feasibility study model is based on international risk evaluation standards.
Enterprise Risk Management (ERM)
a proven process for facilitating company-wide discussions that reveal the most relevant and potentially damaging risks and how best to mitigate them.
Environmental, Social and Governance (ESG)
provides guidance on Responsible Investment (RI). RI is evolving from being a niche investment area to become a much larger proportion of the investment market. ESG Criteria ensure that a given bioeconomy project is driving the double bottom line of profit and environmental and social benefit.
Green Bond International Standards (GBIS)
are intended to encourage sustainability and to support climate-related or other types of special environmental projects. They have specific standards that make them “Green”. Incorporating these standards allows investors to have assurance that the investment continues to perform and meet the initial Green Bond criteria.

Global Biofuture Solutions is dedicated to address the growing need to rapidly create a Low Carbon Bioeconomy through the services of a Global Advisory Team to “work smarter, not harder” and also by developing and managing a suite of high-quality tools and services that can accelerate rapid deployment both domestically and internationally.

We have a flexible retainer fee schedule, and can work with clients on a per-project contract arrangement or on an hourly fee basis as desired. Please contact us for more information and a free consultation.