A North American company specializing in innovative carbon waste recycling was seeking investment from private equity to build and operate a bio-ethanol plant in Europe as part of its strategy to expand into renewable energy. The client needed a comprehensive business plan with special emphasis on risk management to assess the feasibility and profitability of the investment.
Our client reduced its exposure to $10 million worth of annual risk, identified and prioritized 79 key risks associated with the project and was able to tell a compelling story to prospective private equity investors.
With a detailed understanding of the regulatory landscape and expert financial modeling, our professionals de-risked the investment, providing risk mitigation and contingency planning recommendations to manage potential delays and cost escalations.
Based on FTI Consulting’s business plan, financial modelling and risk analysis, the client was able to better assess its project and seek potential investors.
FTI Consulting conducted in-depth financial modelling for the opportunity, including sensitivity analysis on key variables such as feedstock prices, ethanol market demand and regulatory changes.
Our professionals led risk identification workshops with key stakeholders to identify potential risks across the project lifecycle – from design and construction to operation and maintenance – and assign probability distributions to each risk.
We performed a Cost & Schedule Risk Assessment (“CSRA”) to evaluate the impact of each identified risk on the project’s profitability using Monte Carlo simulations.
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