When to use economic evaluation / financial modelling in business and social enterprises?
Economic evaluation or financial analysis is used to assess and to value: –
- Existing Businesses – Assessing the economics, viability and value of an existing business – small or mammoth, as it stands now or with the development of options.
- New Project or Concept Study – Assessing the economics, viabilty and value of a new project. As in social enterprises and community start-ups
- Merger & Acquisitions (M&A) – Evaluating each of the underlying entities then assessing the compatibility, synergies, benefits, viability, optionality and value of a merger.
- Investments – assessing and valuing an investment in an existing business or in a new project
- New Products and Sales – evaluating the viability and value of a new product and/or of various sales plans.
- Operating plant improvements and new ideas for manufacturing
- Optimisation – assessing the full range of possibilities for an existing business or a new project.
- Closure – Compare and value different ways of closing down an existing business.