Feasibility Studies

We conduct feasibility studies on behalf of clients to determine whether or not to enter a new market by acquiring assets/companies, building new facilities or upgrading existing operations.  Feasibility studies we have successfully completed have addressed the following issues:

  • Market attractiveness

  • Optimal timing for entry given market cycles

  • Potential constraints and bottlenecks to investment

  • Transportation and logistics challenges

  • Potential targets for investment

  • Projected returns

  • Competitive response  

 

We have undertaken feasibility studies for clients in North and South America, Europe, Asia and Africa.  The value we provide is in validating the client’s investment thesis that a specific geographic market or end-user channel, asset platform or technology represents an attractive opportunity for sustainable and profitable growth.

 

Case Studies

Potential Investment in PNW Port Asset for Asian Trading Company

  • Our client was considering investing in a port asset in the PNW and wanted a better understanding of whether it would be able to originate sufficient volumes of corn, soybeans and wheat to operate the facility at full capacity

  • The study included an analysis of potential partners within the draw area, cost and strategy on moving grains from these elevators to the PNW, the impact of the ethanol boom on trade flows to the PNW, whether there was room for an additional export elevator in the PNW and long-term trends affecting demand in Asian destination markets

  • Based on HighQuest’s recommendations, the client decided to invest in the facility

 

Soybean Processing Facility for an Asian Client

  • Client was considering an investment in a soybean processing facility in Vietnam to increase throughput at its port facility near Ho Chi Minh City and wanted an assessment of the market and technical feasibility of such an investment.

  • On the market side, we found that although there was sufficient demand for an additional soybean processing facility in Vietnam, the economics of such a facility did not work.

  • On the technical side, we projected the cost to build and operate a facility over a ten year period and recommended potential equipment vendors that the client should pursue

  • Based on HighQuest’s recommendation, the client decided not to invest in the facility

 

Canola Processing Facility for U.S. Client

  • Client was considering building a canola processing facility in the U.S. and needed a 3rd party feasibility study that it could use to show banks interested in financing construction

  • Concentrated on the proposed facility’s locational advantages, competitive advantages in sourcing canola, competitiveness in the facility’s target market, and its margin potential going forward.

  • Facility was financed and is currently under construction

 

Palm Oil Refinery in the Western U.S. for Asian Client

  • Client was considering building a palm oil refinery in the Western U.S. and wanted to know if there was sufficient demand in the Western U.S. and if so, where the refinery should be located.

  • Advised client that there was sufficient demand in the region for an additional refinery, highlighted the cost advantages could achieve by operating in certain areas and identified potential acquisition opportunities and Greenfield sites that the client should pursue in the most competitive regions.

  • Client is still considering the opportunity

 

Palm Oil Refinery in Brazil for Asian Client

  • Client owned palm oil plantations in Northern Brazil and was considering investing in a palm oil refinery in the region

  • Advised client on domestic and international demand for palm fractionated products, identified primary consumption markets and highlighted competitive advantages/disadvantages of operating in the selected locations. Also, identified other locations within Brazil that the client might consider.

  • Based on HighQuest’s recommendation, the client decided against building a palm oil refinery in Brazil