Markets and demand
Structure market size, segments, adoption assumptions and supply–demand scenarios. See which assumptions drive the opportunity.
Techno-economic modeling
Understand what makes the case work.
Compare markets, technologies and commercial alternatives. Connect technical assumptions with costs, cash flows and investment economics, and see which inputs could change the decision.
Ways to work together
Use, adapt or commission a model.
What we model
Markets, assets and commercial alternatives.
Costs and competitiveness
Compare assets, technologies or routes on a defined basis. Separate structural cost differences from choices about scope and operation.
Investment and pricing
Connect capital, operating costs, cash flows and commercial terms. Test the conditions required for a business case to work.
Transactions and alternatives
Examine commercial scenarios, proposed terms and opportunity costs. Give the discussion a consistent analytical basis.
Inside the analysis
What the result depends on.
Inputs and sources
Use your team’s data alongside external sources, with targeted research where an input needs better evidence. Keep inputs, calculations and outputs distinguishable, and document sources, units and boundaries.
Scenarios and sensitivities
Compare a complete design
Change a coherent set of assumptions to compare alternative configurations.
Test one assumption
Change one selected driver while holding the rest of the design constant to understand its effect.
Cost, price and return
Production cost
Resources, investment and operation within the defined production boundary.
Required selling price
The price required under the assumed financing structure and target return.
Market evidence
Customer alternatives, willingness to pay and observed commercial terms.
We distinguish production cost, the price required to meet the target return and observed market prices. Customer evidence tests whether buyers will accept the offer.
Critical assumptions
Influence on the economics
How much could this assumption change the comparison?
Strength of evidence
How well is the assumption supported?
Priority for further research or testing
Focus further work on influential assumptions that need stronger evidence.
Identify where a better input could change the conclusion. Check model logic and reconciliations, and distinguish a scenario range from a forecast or probability estimate.
The handover
The model, its basis and the commercial reading.
The working model
- An agreed model format, usually Excel, with editable inputs and visible calculations
- Documented assumptions, sources and calculation boundaries
- Defined scenarios, outputs and relevant sensitivity analysis
- Version identification and guidance for using the file
The commercial interpretation
- Results explained in the context of your alternatives
- The drivers and conditions that could change the decision
- Critical assumptions and priorities for further analysis
- A walkthrough and any further training agreed in the assignment
Clear rights and support
Commissioned deliverables, ownership and reuse rights are agreed in the scope. Library models have an organization license and product-specific support and update terms. Read the model license.
Selected experience
Questions we have helped clarify
An industrial materials business
What are the commercial alternatives worth?
The model compared margin pressure, supplier changes and volume commitments in separate scenarios, providing a basis for assessing proposed terms against alternatives.
Which assumptions need testing?
Bring the alternatives you are weighing and the analysis you already have. We will identify where an existing model, adaptation or bespoke analysis can help.
Discuss your modelssabitovs@covalent-iq.com