PROJECT PLANNING AND EVALUATION
Viability and financial control analysis
What is it for?
Project planning and evaluation qualifies and quantifies the available resources to align them towards the goal’s compliance under a specific schedule, identifying financial risks inherent to the operation and being vital to mitigate them.
Through the planning, a business scheme is structured towards a profitable purpose or other motivations (social, environmental, among others), and throughout the evaluation, necessary corrections will be made in order to validate and optimize the model.
Different kinds of projects that we can evaluate
- Venture companies
- New products, services or sales channels.
- Holding events
- Machinery purchasing
- Defined term investments
- E-commerce
- Real estate arbitration
- Debt acquisition
- Social and environmental projects
- Others
How it is modelated?
Local economic environment is analyzed along with the industry where the project will be involved, necessary resources for the operation will be quantified, projections are built, and financial planning is realized along the cash flow structuration (of the project, and if needed, of the investor). Through this flow, liquidity is analyzed identifying critical points of the project, with which a risk matrix is created.
Consequently, the project valuation is carried out, through the calculation of: cost of capital (WACC), profitability index (PI), internal rate of return (IRR), return of the invested capital (ROIC), net present value (NPV), among others, along with its respective analysis.
Negative effects of not planning and evaluate a project
If the project planning is not done, a specific schedule will not be held for achieving goals. Available resources scope will not be measured causing possible illiquidity situation and consequently, debt acquisition. If the evaluation is not done, there will not be a clear idea about the viability of the project, and it could end generating an investment lost.
With that in mind, these impacts could affect in a greater proportion different kinds of venture companies, which when being on an early stage of business, could even end in bankruptcy.
Why Quae Solutions?
