Clarify the objectives

Jump to: navigation, search

The objectives section sets the focus of the study. Because a CFS could easily analyze thousands of issues, risks and structures, some parameters must be established. This is why feasibility studies can’t be “off the shelf” boilerplate projects; they must be customized for each organization.

Despite the need for customization, some objectives will be consistent among different organizations. Most companies will undertake a feasibility study to better understand what a captive can do for them. As captive’s are often new to the evaluating investor, this education element is very important. Most companies will also want the feasibility study to provide them with arguments either for or against forming a captive to be used for the board of directors or other decision makers. A CFS often satisfies a statutory requirement as well.