FDI

Foreign Direct Investment practice is part of PGK, specializing in corporate location and economic development strategies. The FDI practice provides location strategy and site selection end-2-end services to corporate Clients, analyzing international business locations for expanding or consolidating companies to select the optimal location. It also advises organizations on economic development and improving their competitiveness, strategic marketing, developing value propositions and marketing tools.

Feasibility Study

We represent the Clients towards public authorities and other parties involved in the project as a consultant and a law firm. We do concentrate on legal and administrative aspects of the procedures and therefore we consult our actions as well as control administrative processes with a recognized law practice.  In every stage of the project we focus on technical aspects of the design offering our Clients tailor-made solutions and state-of-art technologies. The consulting services are provided by our experienced, in-house consultants and for all the outsourced services we implement proven, detailed coordination and supervision procedures.

 

An investment project / feasibility study will include the following preliminary information:

 

1.    Brief description of project.

2.    Sponsorship, management & technical assistance: 

History and business of sponsors, including financial information.

Proposed management arrangements and names and curricula vitae of managers.

Description of technical arrangements and other external assistance (management, production, marketing, finance, etc.).

3.    Market & sales:

Projected production volumes, unit prices, sales objectives, and market share of proposed venture.

Potential users of products and distribution channels to be used.

Present sources of supply for products.

Future competition and possibility that market may be satisfied by substitute products.

Tariff protection or import restrictions affecting products.

Critical factors that determine market potential.

4.    Technical feasibility, manpower, raw material resources & environment:

Comments on special technical complexities and need for know-how and special skills.

Possible suppliers of equipment.

Availability of manpower and of infrastructure facilities (transport and communications, power, water, etc.).

Breakdown of projected operating costs by major categories of expenditures.

Source, cost, and quality of raw material supply and relations with support industries.

Import restrictions on required raw materials.

Proposed plant location in relation to suppliers, markets, infrastructure, and manpower.

Proposed plant size in comparison with other known plants.

Potential environmental issues and how these issues are addressed.

5.    Investment requirements, project financing, and returns:

Proposed financial structure of venture, indicating expected sources and terms of equity and debt financing.

Type of financing (loan, equity, quasi-equity, a combination of financial products, etc.) and amount.

Projected financial statement, information on profitability, and return on investment.

Critical factors determining profitability.

6.    Government support & regulations:

Specific government incentives and support available to project.

Expected contribution of project to economic development.

Outline of government regulations on exchange controls and conditions of capital entry and repatriation.

7.    Timetable envisaged for project preparation and completion.