Commercial modelling is the process of testing the financial feasibility of an early design proposal, such as a Vision Plan, in order to build a credible business case and a design strategy for the next phases of the project.
Apex work with various internationally renowned business consultants, such as KPMG, to prepare financial feasibility studies which calculate potential project return on investment by evaluating the estimated construction costs, project phasing, estimated circuit revenue and facility operational costs. These studies define the investment opportunities made available by the project Vision Plan which have previously proven invaluable when pitching to the investment community to generate the capital required getting the project off the drawing board.
The data that results from the study should influence the strategy for future design stages by indicating a target budget and providing an indication of the development areas required in order to maximise returns based on national, regional and wider economic data.
Since commercial feasibility analysis is the key to ensuring the project’s financial success, we always encourage our clients to carry out this stage of work to obtain an early understanding of the project to build a credible business plan which could be the key to ensuring the project’s financial success. We define this stage as ‘establishing the art of the possible’ and, we think, this is a key differentiator between our approach to projects and that by others.