Financial & Business Analysis

Techno-Economic Feasibility Studies

Comprehensive investment analysis that transforms project ideas into evidence-based decisions — combining financial modelling, market assessment, and risk quantification to support funding applications and strategic planning.

Investment Appraisal Financial Modelling IRR & NPV Analysis Payback Period Sensitivity Analysis Loan Structuring Development Grants
Overview

What Is a Feasibility Study?

A techno-economic feasibility study is a structured analytical document that evaluates the financial and operational viability of a planned investment. It provides decision-makers, financial institutions, and public bodies with a rigorous, independent assessment of whether a project is likely to generate adequate returns — and under what conditions.

When is it mandatory? Feasibility studies are required by Greek development law frameworks (e.g. Investment Law 4887/2022), ESPA-funded programmes, regional development incentives, bank and leasing institutions for project financing, and public tenders involving concession or investment decisions. They are also prudent practice for any capital-intensive private investment before committing resources.
Target Audience

Who Needs a Feasibility Study?

Feasibility studies serve a broad range of organisations and individuals at different stages of an investment lifecycle.

Enterprises & SMEs

Companies evaluating expansion into new production lines, facilities, technologies, or geographic markets that require substantial capital commitment.

Start-ups & New Ventures

New businesses seeking to validate their business model financially and attract investors, bank financing, or participate in grant programmes.

Applicants to Development Law

Businesses submitting investment proposals under Law 4887/2022 or similar frameworks that require a documented financial appraisal as part of the application.

Bank & Leasing Financing

Borrowers seeking project loans, investment loans, or leasing arrangements who must demonstrate projected cash flow adequacy and repayment capacity to lenders.

Energy & RES Projects

Developers of photovoltaic, wind, biomass or other energy installations where investment decisions hinge on yield projections and regulatory tariff structures.

Tourism & Real Estate

Hotel developments, agrotourism ventures, and commercial real estate investments requiring occupancy modelling, revenue forecasting, and ROI analysis.

Agri-food & Processing

Agricultural producers, food processing units, and agri-industrial investments seeking development law subsidies, bank financing, or ESPA co-funded modernisation programmes.

Joint Ventures & M&A

Parties entering joint ventures, acquisitions, or strategic partnerships who require independent financial validation of the target entity's projections before finalising terms.

Inputs & Data

What Data Goes In?

The reliability of a feasibility study depends entirely on the quality and completeness of the underlying data. MBO works with clients to gather and verify all required information across three primary areas.

Investment & Pre-Costing Data

  • Detailed pre-costing of fixed assets (equipment, construction, installation)
  • Infrastructure and utility connection costs
  • Licensing, permitting and professional fees
  • Pre-operational and start-up expenses
  • Working capital requirements for initial operations
  • Contingency provisions and inflation estimates

Financing Structure

  • Equity contribution and owner's capital schedule
  • Long-term investment loan terms (amount, interest rate, repayment period)
  • Working capital (revolving credit) facility terms
  • Leasing arrangements and residual values
  • Grant or subsidy component (Development Law, ESPA, etc.)
  • Grace periods and drawdown schedules

Revenue & Operating Assumptions

  • Production capacity and utilisation ramp-up schedule
  • Pricing assumptions and market analysis
  • Raw material and energy cost projections
  • Labour and payroll costs by department
  • Fixed and variable overhead costs
  • Tax rates, depreciation method and schedules
Data collection support: MBO assists clients in gathering and structuring input data, cross-checking pre-costings against market references, and ensuring that financial assumptions are realistic, defensible, and aligned with the requirements of the specific financing or grant body.
Financial Indicators

Key Performance Metrics

The study produces a set of standard financial indicators that allow investors, lenders and evaluators to assess project viability at a glance and compare it against benchmarks or alternative uses of capital.

Profitability

Internal Rate of Return (IRR)

The discount rate at which the project's net present value equals zero. IRR represents the effective annual return on the investment and is the primary criterion for grant eligibility thresholds and lender assessments.

Valuation

Net Present Value (NPV)

The total value created by the investment in today's terms, after discounting future cash flows at the required rate of return. A positive NPV confirms that the project creates value above its cost of capital.

Recovery

Payback Period

The number of years required to recover the initial investment from operating cash flows. Both simple and discounted payback periods are calculated, giving lenders a clear view of exposure duration.

Debt Service

DSCR

The Debt Service Coverage Ratio measures whether annual operating cash flow is sufficient to meet loan repayment obligations. A DSCR above 1.20–1.25 is typically required by Greek financial institutions.

Efficiency

EBITDA & Operating Margins

Earnings before interest, tax, depreciation and amortisation and operating margin projections across the forecast horizon, revealing the underlying profitability of operations before financing effects.

Liquidity

Cash Flow Analysis

Annual and cumulative free cash flow projections, distinguishing operating, investing and financing activities, to confirm that the project generates sufficient liquidity throughout the analysis period.

Threshold

Break-Even Analysis

The minimum revenue or output volume at which the project covers all its costs and reaches zero profit. Break-even thresholds are calculated for each key variable, identifying the safety margin between projected performance and financial viability.

Equity Return

Return on Equity (ROE)

The net profit generated as a proportion of the owner's equity contribution. ROE provides shareholders and co-investors with a direct measure of how efficiently their capital is being deployed relative to alternative investment opportunities.

Risk Assessment

Sensitivity & Scenario Analysis

No investment operates in a perfectly predictable environment. Sensitivity analysis is an essential component of every MBO feasibility study, quantifying how the key financial indicators respond when critical assumptions deviate from their baseline values.

We systematically test the impact of changes in variables such as revenue (sales volume or price), operating costs (energy, raw materials, labour), investment cost overruns, and financing terms. For each variable, we identify the break-even threshold — the point at which the project ceases to be financially viable.

Scenario analysis extends this by combining multiple adverse or favourable conditions simultaneously, creating pessimistic, base-case and optimistic projections. This equips decision-makers with a realistic range of outcomes rather than a single-point forecast.

Risk identification: Where analysis reveals specific risk concentrations, MBO recommends mitigation strategies — such as hedging arrangements, phased investment, alternative financing structures, or contract structures that reduce exposure to volatile inputs.
Sensitivity: IRR impact by variable
Revenue –10%
–3.2pp
Revenue +10%
+3.1pp
OPEX +15%
–2.4pp
CAPEX +10%
–1.6pp
Interest +1pp
–0.9pp
Illustrative example only. Actual values depend on project specifics.
Our Approach

How We Work

01

Initial Briefing & Scope Definition

We begin with a structured consultation to understand the project, its financing context, the target audience (bank, grant authority, internal board), and the timeline. We define the modelling horizon, currency, and key assumptions to be used.

02

Data Collection & Validation

We collect and review all investment pre-costings, technical specifications, market data, and financing term-sheets. Where data is incomplete or inconsistent with market benchmarks, we flag this and assist in sourcing reliable estimates.

03

Financial Model Development

We build a transparent, fully integrated financial model covering the income statement, balance sheet, cash flow statement, and debt service schedule over the full analysis period — typically 10 to 20 years depending on asset life and financing tenor.

04

Indicator Calculation & Interpretation

We calculate IRR, NPV, payback period, DSCR, and operating margins, and interpret their meaning within the specific regulatory and market context. Where applicable, we benchmark results against sector averages or eligibility thresholds.

05

Sensitivity & Scenario Analysis

We conduct systematic sensitivity testing on the key value drivers and present results in a clear tabular and graphical format. Pessimistic, base-case and optimistic scenarios are documented with their respective probability weightings.

06

Report Delivery & Presentation

The completed study is delivered as a professional bound document in Greek and/or English as required. We support the client in presenting findings to banks, grant evaluators, or board members, and provide responses to any queries or revision requests.

Value Added

Why Commission a Professional Study?

Bank & Lender Credibility

A professionally prepared study prepared by an independent consultant carries significantly more weight with lenders than internal projections submitted by the applicant.

Grant Application Success

Development law and ESPA evaluators assess financial sustainability rigorously. A study structured to meet their specific requirements materially improves approval prospects.

Informed Decision-Making

Beyond external requirements, the analysis reveals whether the project genuinely makes sense before significant resources are committed — potentially preventing costly mistakes.

Investor & Partner Confidence

Third-party investors, strategic partners, and co-shareholders require independent financial validation before committing capital or entering joint ventures.

Risk Transparency

Sensitivity analysis forces a disciplined examination of what could go wrong, enabling proactive risk management rather than reactive crisis response.

Regulatory Compliance

Where a feasibility study is a statutory requirement for a permit, licence, or subsidy, MBO ensures the document meets all format, content, and certification requirements.

Negotiating Leverage

Independently validated financial projections strengthen your position when negotiating loan terms with banks, subsidy conditions with authorities, or equity stakes with co-investors.

Strategic Planning Tool

Beyond the immediate financing purpose, the completed study serves as a management roadmap — defining milestones, KPIs, and decision triggers for the investment's operational phase.

Commission Your Feasibility Study

Whether you are preparing a bank financing application, a development law submission, or an internal investment decision, MBO delivers rigorous, independent analysis you can rely on.

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