Mergers and AcquisitionsStandard Methodology
Feasibility Study
AIA's feasibility approach combines a financial feasibility and sustainability assessment with an understanding of the funding value proposition and the operating shifts needed to commercialise an asset or programme.
What it is
A feasibility methodology that tests financial sustainability and the funding value proposition of an asset, service or programme, and identifies the operating and commercial shifts required to make it viable — distinct from, but complementary to, Market Sizing and Financial Modelling.
Problem it solves
Determines whether a proposed investment, programme or asset portfolio is financially viable and what changes are required to make it so, before further capital or reputational commitment.
When to use
- A client needs to test whether an asset, programme or expansion is financially viable before proceeding
- A funding or commercialisation strategy is required for an asset portfolio
Key questions
- Is the initiative financially sustainable?
- What is the funding value proposition?
- What levels of complexity and operating shifts are required for commercialisation?
Inputs
- Financial statements and cost data
- Asset/portfolio inventory (e.g. site-by-site data for a tiered asset base)
- Funding and revenue model assumptions
Steps
- 1Assess financial sustainabilityDetermine whether current funding and operating models are sustainable.
- 2Define the funding value propositionEstablish what would make the initiative attractive to funders or self-sustaining.
- 3Assess commercialisation complexityIdentify the operating shifts required, tiering assets or sites by geography/brand recognition where relevant.
Outputs
- Financial feasibility and sustainability assessment
- Commercialisation/funding roadmap
feasibility studyfinancial sustainabilityfunding value propositioncommercialisation
Related methodologies
Custodian: Corporate Support. Internal (staff access). Source: AIA_Methodologies_2024.pptx (slides 38, 181, 182, 183, 184, 185, 186, 234, 235).