How confident are you in the numbers?
What are the risks, and are they quantified?
A Validation Report will provide you with an independent, unbiased accounting of your proforma. All inputs and outputs will be sourced, cited, and compared to historical ranges of values for similar data. This process will reveal risks and sensitivities that may be hidden to you, and put a dollar value to them. Most importantly, this information is documented and summarized in a way that provides you, your investors, and lenders the confidence they need to support your project. The result: trust and confidence building, risk minimization.
In many cases, you may have a Feasibility Study that was prepared by your technology provider, engineer, or other team member. Banks, and even investors, often require a ‘3rd-Party Validation’ of the projections within your feasibility study by an independent expert. Done properly, this Validation step will confirm your proforma, and if needed, point to data or inputs that need further testing or analysis to gain the confidence needed. Done poorly, you will be left with more questions than answers. Cavanaugh’s unique validation process uses an objective approach to assess data confidence for each critical input, yielding an overall risk assessment that is defendable and backed by sound business analysis.
In those instances where a Feasibility Analysis does not match your needs, such as when you are self-funding a concept that is yours or that you are committed to, a Validation Report will provide you with confidence in your proforma and point out the gotchas that may have been missed in your assessment, avoiding surprises, risk, and more importantly – unexpected costs.
Bioenergy systems are complex, but they don’t have to be complicated. The greatest threats to the success of your project are the “unknowns” – real or perceived. The complexity of these systems is nothing to fear, yet it creates fear and doubt in those that you must acquire some level of approval from, such as internal management, lenders, investors, regulators, and even community leaders. Fear and doubt can be, and often are, project killers, and can significantly add to the costs of developing your project.