Feasibility analysis; It is a detailed study consisting of processes such as site inspection, field research and reporting. Feasibility reports are comprehensive documents that we need in our daily lives. These reports are usually prepared at the inception of a business or an investment and are expected to be as detailed as possible. The preparation process of these reports, which have a wide range of sectors and topics, varies according to the customer’s demand and the breadth of the report content. These reports are prepared by finance experts, real estate valuers, legal advisors, etc., who are experts in the finance and real estate sector.
Many techniques are used in the report content, some of which are: location analysis, market research, project and property, plant and equipment valuation, best and most efficient use analysis, etc. By means of these techniques, economic, financial and technical researches are made and the basis of investment projects is formed with the results based on numerical data.
The reports generally start with the sector research on the products and services that are the subject of the investment, and consist of the technological tools to be used and the necessary investment items. At the last stage, profit and loss analyzes are made based on financial research. At the end of the report, works are started to act with the investment method that is profitable, and the process continues with the right location and the necessary budget.
The purpose of preparing these reports is to provide data on whether the projected business line, service or project can have a place in real life, the profit-loss balance, or more optimized results will be obtained if the decision is made under which conditions and location, and to develop a financial model by determining the possible income-expense table.
Since the reports are prepared in great detail, they need to go through certain stages and contain an explanation from general to specific. However, one point that should not be forgotten while preparing the reports is that the investor understands the planned formation in detail, so that the business partner company displays a more accurate approach to the detailed costs of the project, risk-sales potential and customer potential.
For the reasons we have listed above, feasibility reports are of vital importance in terms of establishing a solid infrastructure and making a strategic planning if you have an idea for a new venture or if you want to evaluate an area/property you own in the most optimized and beneficial way.