Investment advisory
Five questions a board should ask before approving a feasibility study
Before approving an investment on the back of a feasibility study, check the assumptions behind it. These five questions help.
By Iyad Assad · October 2026 · 4 min read
Boards in the region approve significant investments on the strength of feasibility studies: a new facility, a market entry, an education or healthcare venture. The study usually ends in an attractive IRR. What matters is how far the board can rely on that figure.
1. Is demand evidenced or assumed?
Ask where the demand figures come from. Primary research with target customers, comparable operators and observed market data carry more weight than a top-down share of a large market.
2. Which three assumptions drive the value?
Most of the result usually depends on a handful of inputs, such as price, ramp-up speed or occupancy. Ask to see what happens to the return if each moves against you. A good study shows the return under different scenarios.
3. Who are we taking customers from?
Every new entrant wins customers from someone. The study should name the competitors, explain why customers would switch, and show how the route to market reaches them.
4. Does the funding plan match the cash curve?
Projects often fail on cash rather than profit. Check the ramp-up period, working capital and the peak funding requirement, and confirm that the financing covers it with headroom.
5. What would make us stop?
Agree stage gates before the money is committed: the milestones and results that must be achieved to release the next tranche. Agreeing these at the start is much easier than trying to stop a project halfway.
In short
If the study answers all five questions clearly, the board has what it needs. If not, ask for more work before approving.