The INVIZEN Platform’s production of the market feasibility analysis for commercial real estate income-producing properties and other B2B business ventures constitutes one of the cornerstones of the INVIZEN system of services. Market feasibility studies are the key due diligence document that has the potential to drive all future decisions regarding a new project, business operating opportunity, decision to deploy capital or the decision to exit a transaction. Once you understand the process and requirements that attend capital financing and underwriting, the importance of having a full, complete and tested market feasibility analysis becomes crystal clear.
We live in a market economy where consumers pick the winners and losers in businesses by virtue of their purchasing preferences – how they spend their money. Those purchasing preferences are impacted by advancements in technology and business innovations that change the nature of how businesses compete for sales in their local markets. These purchasing preferences are constantly changing as we all learn new information. The outcome is market risk exposure and market risk exposure is that one thing that keeps every investor and business manager up at night.
Managing Market Risk Exposure
The market feasibility study is the tool businesses, entrepreneurs, real estate developers, investors and lenders use to both assess their potential exposure to future losses but to also gauge the potential future opportunities to position products and services in a way that create incredible capital gain outcomes. The trick is understanding how the analysis needs to be done and understanding when and how to apply the actionable business intelligence a complete market study provides.
There is a saying in the business that market feasibility studies are as much art as science. This may be true in many cases but those who say this routinely fail to understand the purpose and benefit of the exercise. If the output doesn’t include actionable business intelligence that is based upon capital market realities, the value of the entire process is lost as the output boils down to opinions.
The Danger of Unsupported Assumptions
The production of a market feasibility analysis report must always include testing of the key empirical assumptions and findings in a full pro forma financial analysis and attending opportunity valuation based upon current capital market investment preferences to determine if the decision to deploy capital is supported by the market evidence. Without these crucial tests, the output is subject to contention and the result can be a complete waste of time, money and resources.
The INVIZEN Platform is specifically designed to address these issues and many more. Find out how we do this amazing reporting process and what it means for your firm, your project, your capital financing and your future ambitions. Contact our offices today for a free initial consultation.