frequent questionsStructuring investment projects
What does project structuring consist of?
It consists of preparing and ordering all the technical, legal, administrative, market, and financial information in a technical and professional manner.
What is the first step to structure a project?
It must have a clear Business Idea. What does it consist of, what is it, a good to be produced or a service to be rendered. It has to have a clear market and precise financial planning.
What does legal structuring mean?
It is an analysis of all the legislation affecting the project. Risk and future threats to the project must be established, all according to law.
What does administrative structuring involve?
The preparation of all the administrative construct of the project, quantifying human and physical resources as required for the task.
What does a technical component of a project contain?
It contains the technical and accurate information on the production, setting up and implementation of the project.
What does a commercial structuring mean?
It basically means to be clear on the market study for the project: Demand, Supply, Price, Place, Promotion, and Product. Commercialization.
What does financial structuring contemplate?
Budgeting of income, investments, costs, expenses, P&L forecast, Cash Flow, Balances, and Financial Evaluation.
What is a financial evaluation?
The analysis of the financial feasibility of a project, using to that end tools such as VPN, TIR, and TIO, among others.
What determines whether a project is feasible?
When the TIR is greater than the Cost of Capital and the VPN is positive. There are multiple ways to determine the financial feasibility.