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Who We Serve and Programs We are Experts
We serve all types of clients from small local farmers and developers of projects and business ventures to the world's largest development banks.
USDA - The United States Department of Agriculture.
There are several programs from Value Added Grants, REAP Grants and the Business and Industry (B&I) which require a complete feasibility study.
For expansion or new startups, these programs provide funds and loan guarantees for many types of business ventures, energy developments, and manufacturing plants in rural areas and other areas of the United States. We have provided studies for all types of projects for this program ranging from Canola Oil Refinery to an Outpatient Substance Abuse Treatment Clinic, Manufacturing Plants, Shrimp Farms, Closed Loop Salmon Farms, Hotels, and many more. We are leaders in providing these types of studies and have extensive experience and knowledge of the USDA requirements. We work on all areas of the United States that these programs are available. The time of completion is typically 30 to 60 days. The cost of the reports vary. Please forward your executive summary to us for a price and time of completion quote. Contact Us to forward your summary.
We are pleased to provide our O&E Insurance, Sample Reports and our extensive list of references.
USTDA - The United States Trade and Development Agency.
Project Development Program: Getting it right from the Start
USTDA provides grants directly to overseas sponsors who, in turn, select U.S. companies to perform Agency-funded project development activities. An overseas sponsor is a local entity, public or private, with the decision-making authority and ability to implement a project. While USTDA projects span a variety of sectors, many focus on clean energy and energy efficiency, transportation, information and communications technology, and the environment. Key activities include:
- Feasibility studies
- Pilot projects
- Technical assistance
USTDA-funded and U.S.-led feasibility studies link foreign project sponsors with U.S. businesses at the critical early stage when technology options and project requirements are being defined. These studies provide the comprehensive analysis required for major infrastructure investments to achieve financing and implementation.
In some cases, export opportunities depend on a demonstration of the U.S. seller's goods, services or technologies in the foreign buyer's setting. USTDA-funded pilot projects demonstrate the effectiveness of commercially proven U.S. solutions and provide the analysis, evaluation and empirical data needed for potential foreign projects to secure funding.
USTDA advances economic development in partner countries by funding technical assistance that supports legal and regulatory reform related to commercial activities and infrastructure development, the establishment of industry standards, and other market-opening activities. These technical assistance programs facilitate favorable business and trade environments for U.S. goods and services.
The team at Wert-Berater, Inc. is headed up by Jerry Trent located in our Munich, Germany offices. He works to build our consortium teams to provide feasibility studies and technical assistance for these programs.
To join our consortium team please contact Jerry Trent at 1.888.661.4449.
The World Bank.
The World Bank is a vital source of financial and technical assistance to developing countries around the world.
Two Institutions, One Mission
Although not a bank in the ordinary sense but a unique partnership to reduce poverty and support development. World Bank is comprised of two institutions managed by 187 member countries: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD aims to reduce poverty in middle-income and creditworthy poorer countries, while IDA focuses exclusively on the world’s poorest countries. These institutions are part of a larger body known as the World Bank Group.
Strategy
Six strategic themes drive the Bank’s work, focusing on the poorest countries, fragile and conflict-affected states, the Arab world, middle-income countries, global public goods issues, and delivery of knowledge and learning services.
There are also strategies for the key areas in which we work:
- Thematic and sector strategies, which guide our work to reduce poverty in a specific sector or aspect of development. Each derives from a broad consultation with a wide array of stakeholders.
- Country assistance strategies, which identify the key areas in which we can best support a country in reducing poverty and achieving sustainable development.
How Wert-Berater, Inc. Serves the World Bank
Wert-Berater, Inc. acts as a third party provider of Feasibility Studies for development banks around the globe. We work with our consortium partners to provide Feasibility Services that are unbiased and true third party. If you have the appropraite experience, education and professional background as an engineer, ecologist, sociologist, economist or other specific industry group of skills and would like to learn more about joining our consortium partnership to be part of our Feasibility Study team please contact Jerry Trent at 1.888.661.4449
EX-IM Bank.
The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States. Ex-Im Bank's mission is to assist in financing the export of U.S. goods and services to international markets.
Ex-Im Bank enables U.S. companies — large and small — to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy.
Ex-Im Bank does not compete with private sector lenders but provides export financing products that fill gaps in trade financing. We assume credit and country risks that the private sector is unable or unwilling to accept. We also help to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters.
Ex-Im Bank provides working capital guarantees (pre-export financing); export credit insurance; and loan guarantees and direct loans (buyer financing). No transaction is too large or too small. On average, 85% of our transactions directly benefit U.S. small businesses.
With more than 70 years of experience, Ex-Im Bank has supported more than $400 billion of U.S. exports, primarily to developing markets worldwide.
Please visit Ex-Im Bank website for more information.
How Wert-Berater, Inc. Serves the EX-IM Banks of the World
Wert-Berater, Inc. acts as a provider of Feasibility Studies for development banks around the globe. We work with our consortium partners to provide Feasibility Studies that are unbiased and true third party.
What We Include in our Feasibility Studies
The scope of a feasibility study varies from project type and scope of work required, however generally the following items are included.
Please click on each area of feasibility to read more.
Economic Feasibility
Feasibility Study Section I
Information related to the project site; availability of trained or trainable labor; utilities; rail, air, and road service to the site; and the overall economic impact of the project. Job creation, economic impact and humanitarian features of the Company’s project should also be discussed.
In this section a comprehensive analysis of the chosen site, location and improvements, if any to the site are completed. This includes two of the normally applied four tests of highest and best use which are: What is Legally Permissible and What is Physically Possible?
Trained and trainable labor availability is evaluated through a demographic analysis of the locality to the firm and its project. The required staff and labor at the firm is used to determine if the positions can be met at the projected wages and benefits to be offered. Also, employment turn over and training costs are fully evaluated.
Availability of utilities is comprehensive. The capacity of such items as water, sewer or alternatives, electrical, telephone and internet services are included in our analysis.
Transportation is critical to most firms. A complete evaluation of rail, air and road services are included. Envisioned road services and other transportation nodes are included.
Job creation and economic impact include shifts in employment, direct, indirect and induced job creation, an analysis of the MSA or surrounding areas in relation to seasonally and non-seasonally adjusted unemployment and employment levels, and how the firm and its operations will provide positive impacts on the local, regional and other reaching areas populations.
Market Feasibility
Feasibility Section II
Information on the sales organization and management, nature and extent of market and market area, marketing plans for sale of projected output, extent of competition, and commitments from customers or brokers.
In the Market Feasibility section of the report, the history of the market is examined on an international, national, regional and local level. Items such a legislative acts, competition existing and envisioned, substitutes, capital markets risk, seasonality, and product deferential and price elasticity are covered.
Monte Carlo Simulations are used to evaluate the stress tests of the markets in terms of market share, demographics, and pricing. The results of this section of feasibility obviously are important.
Demand is the key component to evaluate in this section. How demand is derived, where it comes from and what can cause changes in demand are fully examined.
Supply is compared on the basis of competitive advantage for the firm. Pricing is most often not a competitive advantage alone. A complete S.W.O.T. analysis is included in this section as with market forecasts provided by credible third party market report to isolate the firm we are evaluating.
The economic analysis of diminishing returns it applied to the overall market to understand if there is available market share for the firm. Absorption, pricing, and demand are carefully evaluated.
Technical Feasibility
Feasibility Section III
Our Technical Feasibility reports are prepared by individuals who have previous experience in the design and analysis of similar facilities or processes proposed in the application. The Technical Feasibility reports address the suitability of the selected site for the intended use including an environmental impact analysis. Our team includes engineers, environmental and ecological experts to fulfill this demand.
The report is based upon verifiable data and contains sufficient information and analysis so that a determination may be made on the technical feasibility of achieving the levels of income or production that are projected in the financial statements. The report also identifies any constraints or limitations in these financial projections and any other facility or design-related factors which might affect the success of the enterprise.
The report also identifies and estimates project operating and development costs and specifies the level of accuracy of these estimates and the assumptions on which these estimates have been based.
For the purpose of the technical feasibility reports, the project engineer or architect must be considered an independent party provided neither the principals of the firm nor any individual of the firm who participates in the technical feasibility report has a financial interest in the project, and provided further that no other individual or firm with the expertise necessary to make such a determination is reasonably available to perform the function. Thus, our in-house team and consortium partners meet these requirements.
This approach is often overlooked in many studies particularly for real estate and other development projects whereas cost over-runs and project delays can evaporate returns to investors and lender debt service coverage.
Financial Feasibility
Feasibility Study Section IV
Our reports provide an educated opinion on the reliability of the financial projections and the ability of the business to achieve the projected income and cash flow. An assessment of the cost accounting system, the availability of short-term credit for seasonal business, and the adequacy of raw materials and supplies are carefully evaluated..
This is based on a pro forma that is developed on a month-by-month basis for as little as 10 years and in some cases longer from data derived from the first four sections of feasibility.
This analysis includes an analysis of a group of financial ratios as follows:
- Current Ratio
Measures whether or not a firm has enough resources to pay its debts over the next 12 months. Low values for the current or quick ratios (values less than 1) indicate that a firm may have difficulty meeting current obligations. Low values, however, do not indicate a critical problem. If an organization has good long-term prospects, it may be able to borrow against those prospects to meet current obligations. Some types of businesses usually operate with a current ratio less than one. For example, if inventory turns over much more rapidly than the accounts payable become due, then the current ratio will be less than one (this is true for McDonalds).
- Quick Ratio (Acid Test)
Calculates liquid assets relative to liabilities, excluding inventories. The higher the Quick Ratio, the better. Optimal ratio is greater or equal to 1. Efficiency Ratios measure how quickly products and services sell, and effectively collections policies are implemented.
- Receivables Turnover Ratio
If this number is low compared to the industry average, it may mean the firm’s payment terms are too lenient or that it is not doing a good enough job on collections. By tracking this figure monthly or quarterly, using total credit sales instead of net sales, analysis can uncover any changes in collections trends.
- Average Collection Period
Based on the Receivables Turnover Ratio, this estimates the collection period in days. Calculated as 365 divided by the Receivables Turnover Ratio.
- Inventory Turnover Ratio
A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort. However, in some instances a low rate may be appropriate, such as where higher inventory levels occur in anticipation of rapidly rising prices or shortages. A high turnover rate may indicate inadequate inventory levels, which may lead to a loss in business.
- Fixed-Asset Turnover Ratio
Generally, a higher ratio is better, since it indicates the business has less money tied up in fixed assets for each dollar of sales revenue. A declining ratio may indicate that the business is overinvested in plant, equipment, or other fixed assets.
Value Tests Include
- Net Present Value (NPV) of pro forma cash flows.
- Project Internal Rate of Return (IRRp) 3, 5, 7 and 10 year hold periods.
- Equity Investment Internal Rate of Returns (IRRe) based on Operating Agreements.
- Project Modified Internal Rate of Return (MIRRp) 3, 5, 7, 10 year hold periods.
- Equity Investment Modified Internal Rate of Return (IRRe) based on Operating Agreement
- Debt Service Coverage Ratio Analysis (DSCR)
- Cash on Cash Returns
Stress Tests Include
- Break even analysis based on varying price/operating expense levels.
- Monte Carlo Simulations Applied to NPV, IRRp, IRRe, MIRRp, MIRRe, DSCR and Cash on Cash
The Financial Feasibility is the translation of results from the Economic Feasibility, Market Feasibility and Technical Feasibility sections whereas capacity, market acceptance, costs and pricing ranges are established through careful research and analysis.
Management Feasibility
Feasibility Section V
Evidence that continuity and adequacy of management has been evaluated and documented as being satisfactory.
This section of the report is crucial. Company liquidity, capitalization, manager's backgrounds, affiliations, product trademarks, patents, intellectual property, company history and details relating to invested capital are fully documented and verified.
What we do Not Include
Hedging, not Losing
A feasibility study is an unbiased, third party, report provided by a non-financially related firm that is intended to present a complete risk assessment. It is not a sales brochure, a marketing pitch or a document used to stand-alone specifically raise capital or comply with the legal requirements set forth by law to raise money.
The intended user is to use it as a guide to make their own decisions and no feasibility study can purport to be all inclusive of all facts. However, we do our best with the time allocated and monies expensed to provide the best analysis possible.
If the business plan is changed, the results of the feasibility may change. The purpose of a feasibility study is to present a reasonable determination as to the outcome of a project or business based on current market conditions. The Monte Carlo Simulations are great tools to measuring probability of outcomes if project or market conditions change, however even these types of analyses have limitations.
How Much Money does a Feasibility Study Cost?
Measuring Risk, one report at a time
The cost of a feasibility study is based on the complexity of the project. We would be pleased to provide a price and time of completion quote based on your executive summary or business plan. We keep your information confidential and welcome non-disclosure agreements.
Please forward your information to us and we will respond with a complete quote. A reasonable range is about 0.25% to about 1.0% of the total project cost as a guide. Fees are paid normally with a 60% retainer plus expenses. Between payment of the retainer and the final report, we normally issue a draft to be reviewed to make certain our facts are correct. At this time normally about 20% (at draft report) of the total fee is due. The remaining 20% (at final report) is paid upon completion of the final report. No reports are delivered until the entire fee is paid in full.
We cannot perform feasibility study services based on a loan closing or as any other method of payment that is contigent on the success of the project or it obtaining capitalization.
Will My Project be Feasible?
Many Great Ideas Work and Some Don't
Unfortunately paying for a feasibility study from Wert-Berater, Inc. does not make your project feasible. We can only make you happy through our customer service, and not the outcome of our study.
If we see pitfalls in your business plan as we work on your study, we will call and consult with you as to our findings.
But, we cannot bless your deal. We act as a third party unbiased firm and provide only feasibility studies. We have a long list of studies and projects that had a negative outcome. Over the years some developers have eventually thanked us, yet some are still upset.
Our job is to provide complete, thorough and honest reporting.