Financial Feasibility & Investment Model for Automotive Expansion
/ Case Study / Financial Feasibility & Investment Model for Automotive Expansion

Financial Feasibility & Investment Model for Automotive Expansion

Issues

An automotive parts manufacturer sought to launch a new assembly and distribution facility in the GCC but lacked clarity on capital requirements, ROI timelines, and risk exposure.

Solution

We developed a comprehensive financial feasibility study, investment roadmap, and funding strategy tailored to the industry’s high-capex, low-margin nature.

Approach

Our analysts constructed dynamic financial models including DCF, break-even analysis, and scenario testing. We incorporated cost benchmarks, local market trends, and supply chain risks to simulate outcomes and guide decision-making.

Recommendations

Phase the expansion over three years, prioritize high-turnover SKUs, and secure a mix of private equity and development fund backing to de-risk the investment.

Engagement ROI

Client secured $30M in structured financing. The new facility is projected to break even within 3.5 years and deliver a 19% IRR over 7 years.

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