Options Appraisals
‘Option appraisal’ is a phrase which is frequently
bandied about and, usually in the same sentence, often misused.
A risky combination !
Our view is that an option appraisal should include a financial
appraisal but must take account of a whole range of wider, non-financial
issues for it to be an effective tool to help you and your stakeholders
decide on the most appropriate course of action.
We think option appraisal should:
• be a tool not an answer;
• help not confuse;
• be understood and ‘owned’ by you as the client;
• be simple to modify and revise in the light of new objectives
or information.
To achieve this our Option Appraisal (OA) format is based on:
• Development of a clear set of goals and objective;
• Agreement to the relative weighting between objectives;
• Scoring all financial and non-financial factors.
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