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What is meant by Pre-Investment Studies? Meaning and Definition

Activities that are connected with making a detailed feasibility exploration to evaluate alternative avenues of capital investment in terms of growth and profit prospects are called "pre-investment Studies". The corporate sector has to be very selective in the choice of the project before the investment of capital. The project must be financially viable, technically sound and have a market for the projects that are envisaged.

Pre-investment studies are directed mainly for the prospective investor. These are the objective and detailed feasibility explanation of which the principal aim is to arm the clients with the sound foundation of facts and figures to evaluate the alternative avenues open for capital investments form the point of view of growth and profit prospects.

Some of the critical issues that a study of this genre deals will include an in-depth investigation of the environment and regulatory factors, the location of raw material, supplies, demand projections, and financial requirements.

Such a study would assess the financial and economic viability of a given project and help the clients to identify and shortlist those projects that are built upon his inherent strength so as to accentuate corporate profitability and growth in the long run.

Grind lays bank has specialization in pre-investment studies and it conducts such studies for foreign companies wishing to participate in joint ventures in India and offers a package of services including advice on the extent of participation, government regulatory factors and an environmental scan of particular industries.

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