Whether to invest or not has always been the fundamental decision for a business, be it on a new company or a new project of an existing company. Only now, the rapidly evolving business landscape has raised the stakes dramatically. With constant disruptive change across product markets, consumers, technologies, and regulations, the need to get it right has never been greater! The viability of the idea ultimately determines the success of the business – and that is where a feasibility study comes in to evaluate whether an investment or business decision makes sense from an economic, financial, and operational perspective.
At MNA, our renowned feasibility study consulting services delivers the best feasibility study in Dubai and the wider UAE. Our high-quality team of widely experienced cross-domain experts are some of the finest feasibility study consultants in the UAE and assess the viability of a range of options to determine the best course of Go/No Go action.
Our comprehensive feasibility study consulting services cover all aspects including Market Feasibility, Commercial Feasibility, Operational Feasibility, Financial Feasibility, and overall risk assessment of the proposed activity. Our feasibility study in Dubai and the other emirates determine infrastructure and operating requirements, quantify your costs and benefits, assesses key risks, and recommends the contingencies necessary to support informed decision-making for the UAE. We offer these studies across company sizes (including SMEs), activities, sectors, and domains.
Our established footing here as well as experience across geographies and sectors make our feasibility study consulting services superior to other market feasibility study companies in the UAE. Given our global footprint, we also offer these services in our network office countries around the world.
The benefits of MNA’s feasibility study in the UAE include:
- High-quality experienced team of experts
- MNA’s strong and long-established presence in the UAE
- Independent, unbiased, and objective assessment based on strong project understanding
- Comprehensive KPI reporting for the proposed investment
- Including financials such as P&L, capital budgeting, cash flows, breakeven/ payback, cost factor analysis, NPV analysis, and ROI
- Improved business plan with identified goals and objectives and alternative routes
- High-quality insights into product market, channels, and target consumers
- Full risk assessment and risk mitigation plan
- The higher success rate from in-depth multi-factor evaluation
- Helps with investor pitch fundraising sing
- Aids overall business going forward
- New opportunities uncovered
- Better decision making
- Greater focus
- The improved success rate of future projects
ABOUT FEASIBILITY STUDY
What is a Feasibility Study?
A feasibility study is an independent third-party evaluation of a new venture or project in terms of the proposed product or service’s demand and supply situation in a particular geographic market(s) to determine its commercial viability. The feasibility study estimates the return likely to be generated by the investment under consideration. Its end objective is to provide a Go / No Go recommendation on whether the promoter or investor should proceed with the proposed investment.
The Output of a Feasibility Study
A robust feasibility study by a good feasibility consultant or feasibility study consulting services should cover all relevant factors pertaining to the proposed new investment such as market demand and supply; market size, growth and projected forecasts; pricing, price points, and average margins; consumer demographics, purchase behavior and trends; competition and market share; distribution channels; and overall SWOT analyses highlighting both threats and opportunities. Depending on the specific project or sector, financial projections of a feasibility study include a balance sheet, P&L, cash flows, breakeven, and payback analyses, and expected Return on Investment (ROI).
Components of a Feasibility Study
At MNA, our feasibility study typically comprises the following components whose findings combine to present the overall evaluation.
- Market and Commercial Feasibility
Detailed insight on potential customers and competitors; analysis of different business models used by competitors; comparison of product features and pricing; current market position, trends and future prospects; projected revenue estimates.
Organizational structure evaluation vis-a-vis UAE legal and regulatory framework; resource requirements including time and type and amount of resources required in terms of workforce and labour, raw materials, and office and other operational space; technology needs.
Analyses of funding, fund types and cost of funds; operating expenses; cash flows; breakeven and payoff analysis; balance sheet and P&L; Net Present Value; Return on Investment; Return on Equity. The financial feasibility study evaluates the economic viability of the proposed project in the UAE.
The Need for and Benefits of a Feasibility Study
An objective ‘outside in’ view and advice is imperative where the investor or entrepreneur may be too close to or emotionally invested in a new project idea to be able to take an unbiased view of risks and prospects. Objective advice from top market feasibility study companies like MNA mitigate that danger.
Moreover, market intelligence of comparable quality, scope, and depth as that our market feasibility study consulting services brings in is difficult or inefficient to do in-house.
Further, where funding for a new project is being sought, banks and financial situations may often for an independent third-party feasibility study. This is usually expected to be a recent one, so even if you had done one a few years ago, that may not suffice and a new and updated feasibility study is then called for. MNA’s feasibility reports are accepted by most banks in the UAE.
Feasibility studies are important not only for entirely new businesses and ventures but also for new products or projects of currently existing businesses. That is so irrespective of how established or successful the existing parent / associated business is as that does not guarantee the success of the proposed new project. All relevant factors should still be evaluated, whether product market situation competition, technology, consumer, economy, and the legal landscape.
While these are general reasons why and benefits of a feasibility study, they are especially important in a fast-evolving and hyper-dynamic market like the UAE where rapid economic growth fuels constant changes in both market dynamics (both opportunities and competition) and regulatory compliances. A good feasibility consultant is critical here.
The Feasibility Study Process
Our expert feasibility study consultants first begin with a project understanding of business goals and proposed project objective; feasibility study purpose and budget; company, product, and operational understanding; assessment vis-à-vis UAE market-specific factors such as legal and regulatory landscape, macroeconomic situation, market position, technical knowhow and development, infrastructure, banking and distribution channels, target customers, etc. This is based on detailed briefing meetings and questionnaires.
Following this, we decide on the market research methodology and research design. Using a variety of methods and techniques, we research and analyze the market thoroughly in terms of product, pricing, demand-supply position, consumer/customer, competition, and economic and regulatory landscape.
Based on these analytics and knowledge, we estimate the costs of setting up and operations, and maintenance including marketing, warehousing, distribution, office space, etc. We overlay projected demand and revenues on this to then estimate Net Present Value (NPV) and other financials and the likely Internal Rate of Return (IRR/ROI) to arrive at a Go/No Go recommendation for the proposed activity.
Finally, we present the feasibility study report with detailed discussions. Typically, our report contains an Executive Summary; Project details; Economic and legal, and regulatory landscape; Product market analysis; Marketing strategy; Operational strategy and technology; Organizational structure and HR; Timelines; Financial projections; and Findings and recommendations.
For an entirely new business setup in the UAE, we often conduct a preliminary pre-study assessment of the project to rule out any obvious non-viability before conducting a full-fledged feasibility study that requires time, money, and effort. This thus eliminates the possibility of waste at the outset. The output of this step is either a clear ‘No Go’ or the decision to go ahead with a detailed feasibility study.
Where a client already has financial projections for the proposed venture, we can supplement it with a market and commercial feasibility study as well as an overall risk assessment. We also work with clients’ technical consultants on the technical aspects of the project as and when required.
Feasibility Study Timelines and Costs
The duration of a feasibility study can vary anywhere from 3-4 weeks to a few months depending on the scope and scale of the project. The duration varies by several factors such as the number of geographic locations, the number and complexity of the product market, specific areas of investigation, the scope of market research, and so on.
Costs also vary similarly based on specific requirements and circumstances. Our costs are the most competitive among market feasibility study companies in the market and our value add is unmatched. Contact us for more details.
