Specialized Expo Services
Identified a business opportunity in the UAE? Not sure if the project is likely to be successful or viable? We can undertake a feasibility study to review the commercial and financial aspects of the Project, whilst you participate at the Expo 2020 and provide you with a detailed report on the proposed product or service. The report will address the market demand and growth trends, supply & pricing trends, economic & sector overview along with the market share and potential. With a thorough market research, we will help you take an informed decision.
To know more of how we can help you, reach out to us on firstname.lastname@example.org.
Feasibility Studies & Market Research in Dubai, Abu Dhabi, Sharjah & UAE
Specialized Expo Services
Businesses today operate in fast-paced activity fields. The product life cycles are shrinking, and new-age and innovative products are taking the centrestage of business. New manufacturing technology and supply chain mechanisms are coming to the fore every year, promising better product quality, faster turnaround time and reduced manufacturing costs. Customer preferences are changing rapidly, and with so much choice available, a high performing product can become obsolete before the brand owners even realise.
Both start-up businesses and established organisations are always on the lookout for potential investors to support them with their growth and expansion ambitions. Whether to invest or not remains a big decision at all times! Experienced feasibility study consultants in the UAE would be able to provide you with the information and insights you need to make an informed decision.
Why Conduct a Feasibility Study?
With this as the backdrop, it is imperative for any business house or business investor to understand the potential and feasibility of a proposed project before making the investment decision.
At PKF UAE, our team of feasibility consultants takes all the key parameters into consideration while assessing the situation. We obtain a deep insight into macroeconomic parameters and industry movements. Based on these analyses, we prepare detailed reports on how a project can be expected to perform in the current and projected economic environment.
1. What is a feasibility study and why is it conducted?
A feasibility study is an exercise in which an independent party assesses the potential demand and supply position of a product or service in a geographical location with a view to determine whether the proposed product or service is likely to be commercially viable and will be able to generate the required returns to justify the investment. A feasibility study is conducted to provide assurance to the Promoter(s) and investor(s) whether they should proceed with the proposed investment.
2. I know the potential of my product/service and I know it will succeed. Why should I commission a feasibility study?
There is an inherent risk that a promoter or investor may don “rose tinted glasses” on account of close association with the proposed product or service. The risk of not viewing the product or service objectively and believing that it will be successful is very high. An unbiased, independent and objective study will conduct a detailed analysis of the state of the segment in which the product is likely to operate, existing competition, pricing factors, challenges and risks and other such factors which will determine the success or otherwise of the proposed entrant. This objective review is likely to point out as to why the product or service will be successful or not and what steps may have to be considered by the promoter for its success.
3. I already operate a successful existing business and the service/product that I plan to launch though complementary to existing products, is a different product entirely. Do I still need a feasibility study?
Yes, a feasibility study is recommended. Just because an existing product is successful does not guarantee that the proposed product will be equally successful. The risk that the new entrant faces is no different just because the existing business and product is a success. The complementary product should not be treated differently, unless there are compelling reasons to believe that the proposed entrant is an import or a better substitute than the existing competition. Even if this is the case, potential competition, change in technology, economic situation, demographics, and other such factors could override the comfort that is derived from the current circumstances.
4. Who else is likely to request/use a feasibility study?
If the project is likely to be financed by a bank or financial institution, it is likely that they will request a feasibility study conducted by an independent third party. It may also be requested by someone who is participating in the project in any capacity, say the government in a Public Private Partnership programme. A feasibility study should never be a “tick in the box”. An effective study can save an investor or promoter significant investment in a project which is unlikely to be commercially viable.
5. What does a typical feasibility study report include?
Amongst other things a feasibility study will include demand and supply analysis, demand drivers, existing and anticipated competition, price points, import, export and re-export figures, market size, expected market share of the proposed product or service, economic conditions, demographics, risk factors, critical success factors and finally a conclusion on whether the project is commercially viable or not. Based on the market findings, financial projections of the project including income statement, balance sheet, cash flow and other indicative parameters such as pay-back period, break even analysis, Return on Investment etc. are also included. Other information may be included depending on the nature of project.
6. What is the process involved in the conduct of a feasibility study?
After understanding the plans of the promoters, nature of product or service, geographical area of the proposed product or service, the feasibility study includes secondary research, primary research including face to face interviews, location analysis, reviewing competition and its offerings, pricing points, industry statistics, practices, obtaining feedback from industry experts and other activities with a view to determining if the project is likely to be commercially viable.
7. Will the findings of the feasibility study agree or concur with my expectations and aspirations of the project/service?
Not necessarily. The key to the feasibility study is independence, both in the conduct and arriving at the conclusion. The consultant is not professional if he/she has already agreed to the outcome of the study without due process, examination of facts, analysis of relevant factors and critical thinking. A disservice is done to you if he charges you fees only to agree with your views. A feasibility study can save the promoters a significant sum of money by not proceeding with a project which is unlikely to be successful.
8. I had a feasibility study conducted about 2 years ago. Can I submit that to a banker/financier of the project?
You can try but it is unlikely to be accepted at face value. 2 years is a long time, and several things can change in that time span to change the conclusion arrived. In the interest of the project, promoter, and financier, it is better to update the feasibility study or better to commission one from scratch.
9. Will PKF UAE work with external technical consultant(s) and submit a comprehensive techno commercial feasibility study for presentation to banks and financial institutions?
Indeed, it can. PKF UAE will clearly state in the report that the technical aspects of the project are the responsibility of the technical consultant and PKF UAE has relied on their inputs. PKF can receive a report from the technical consultant and combine it with its own report to deliver a comprehensive document.
10. What is an indicative time frame for the duration of the feasibility study?
This is dependent on many factors, such as number of products or services to be studied, the geographical areas to be covered, the extent of primary research, the number of players in the value chain etc. A study for a single product in a single market with a simple value chain can be completed in 3-4 weeks. Multiple products, geographies and value chain complications can extend the time frame from 8-12 weeks. It is also dependent on the response that we receive from primary research participants. After understanding your project and the activities required to be undertaken, we will provide an indication of time required in our proposal.
11. I have already prepared the financial projections for my project. Can PKF UAE undertake only a market study and issue a report?
Yes, we can. However, financial projections are closely connected with our findings during the study. If the two are not aligned, it may cast aspersion on both the study and the financial projections. To avoid this, we can review the projections that have been prepared in-house and check if they align with our market findings. We can also review if there are any errors in the financial projections. Having said that it is best that both the market study and the financial projections are prepared by an independent, external party with inputs from technical consultants and promoters.
12. Can PKF UAE conduct a feasibility study outside of the UAE?
Indeed, we can. PKF as a network has offices in most major countries globally and we can tap into that. However, not all PKF offices are able to conduct a feasibility study and hence the co-ordinating office will always be PKF UAE. The help of PKF’s local offices is usually availed to obtain local information, sources, contact points and overcome any language barriers. The local office of PKF and PKF UAE can work together to obtain the best possible outcome in an optimal time frame and cost. The countries that we can undertake a study can be discussed on a case to case basis.
13. What support will PKF need from the client for a feasibility study?
We will submit a detailed questionnaire post our initial meeting to understand the details of the project, promoter’s expectations, and other inputs. We will also request details of expected capital expenditure, technical inputs if the project entails manufacturing, bill of quantities, working capital requirements, financing details etc. The more data that is made available, the faster and more efficient is the study and the resulting financial projections. We will attribute the inputs received from the promoters in our report.
14.What is an indicative cost of conducting a feasibility study involving both primary and secondary research and preparing financial projections which can be submitted to a bank or financial institution for funding of the project?
It is difficult to provide a standard fee for a study. It is dependent on many factors such as number of products or services to be studied, geographies to be covered, whether both primary and secondary research is included and other such factors. Contact us and we will be pleased to submit a fair and considered proposal after understanding your precise requirements.
15. Is PKF UAE able to provide references from clients for whom it may have conducted a feasibility study?
References received from earlier clients can be viewed on our website. Nothing will please us more. We will share the contact details or two or more clients to ascertain the quality, timeliness, and the professionalism of our services.
Customer Story Highlight
Probus Engineering & Construction Pte. Ltd.
A thoroughly professional work by Susan and team at PKF! After careful consideration of our options, we have engaged PKF to evaluate our Company and it was proven to be the right decision. The interaction with them was thought provoking and their output is unbiased. The team at PKF, through their knowledge of our business,… read more
Probus Engineering & Construction Pte. Ltd.
It was an absolute pleasure to work together with Susan and her team during the evaluation of our company. The open engagement and candid nature of questioning, coupled with the calm professionalism of the team led to an extremely positive working environment. Further, Susan’s personal stewardship and availability throughout the process maintained the necessary pace… read more
“We have been working with PKF Management Consultancy Services for several years about certain valuation requirements, as part of our financial reporting process. The PKF team has always been responsive and flexible to ensure that deliverables are submitted within the stipulated timeframe. We have been pleased with the consistent level of support provided to us… read more
MayCap Advisors (Financial Advisor to AWPT)
“PKF (UAE) acted as financial model auditor to Alkhorayef Water & Power Technologies (“AWPT”) at the bid stage for Long Term Operations and Management of Sewage Treatment Plants package 1 (Jeddah) and package 2 (Makkah city). PKF team’s sound knowledge and understanding of the transaction ensured that the financial model audit for the bid process… read more
aafaq Islamic Finance, PSC
We have engaged PKF Management Consultancy Services for valuation and purchase price allocation (PPA) assignments over the last few years and are extremely pleased with the team’s expertise, technical knowledge, and commitment towards the engagements. The team is very approachable and involved, and takes significant efforts towards understanding the transaction, dynamics, value-drivers etc. and this is…