Feasibility and Business Planning are important ways to research, plan and develop your CAT. The amount of work completed by an organisation on these two areas should be proportionate to the scale of the CAT and the risks involved.
Your group can complete these processes if you have access to the required skills, or you can work with external consultants if you can find the required funding.
There are significant overlaps between the two areas, but they can be roughly defined as:
- Feasibility is about establishing that the asset transfer provides the best way for the organisation to meet its intended objectives and whether taking on the asset is a viable proposition.
- Business Planning helps you to think through all aspects of your enterprise project: the sector, your customers, the competition and the opportunities and threats you face. It takes a close look at your organisation so you can objectively and honestly report on your resources, skills, strengths and weaknesses.
Assessing the feasibility of the asset is one of the fundamental steps you will take in relation to an asset transfer opportunity. It is critical that due diligence takes place to ensure that the asset presents your organisation with an opportunity to sustain its operation rather than being a liability.
Key research will be required into the market to ensure there is clear demand for the proposed use of the asset. There is also a need to analyse the organisation’s capacity in relation to taking on the management or ownership of an asset and ensure there is a strategic fit.