Third opinion for an investment 🤔

Business valuation is not only for M&A.

Sometimes, we are engaged as an independent third party to review a project investment decision.

When a company plans to invest a large amount of money into a new project, management may already have an internal forecast.
Our role is to step in and ask the uncomfortable but necessary question:

👉 Does the expected return really justify the investment?

This type of valuation is slightly different from valuing an existing business:

• There may be no historical performance
• The analysis is often based purely on assumptions
• Small changes in assumptions can lead to very different outcomes

Because of this, the focus shifts heavily to:

• Industry outlook
• Cost and pricing realism
• Key risk drivers
• Scenario analysis (base / upside / downside)

A “third opinion” can help stakeholders view the investment in a wider angle.

#ORNA #Investment #ProjectAnalysis