The Investment Community on Financial Modeling

To me, one of the benefits of MRGN is the ability to create a platform that provides standardized financial reporting and planning across a variety of industries. As an investor, one of the primary tasks necessary in conducting due diligence is the ability to assess the financial performance of a company and compare that across a peer-set of competitors.

What is beautiful about MRGN’s solution is the ability to conduct apples-to-apples comparisons of a target company against its primary competitors. Many times, in the investing world, a valuation of a company is computed based on its forecasted future earnings. Many small-and-medium sized businesses sometimes lack the acumen or skill set to effectuate this and therefore hobble themselves from being considered as investment targets because of the lack of forward-looking projections. What MRGN can provide is an elegant solution by which both companies and investors alike can come in alignment about a company’s future financial potential AND discuss the substantiation behind those projections by double-clicking into the underlying assumptions and metrics being used to drive those forecasts. MRGN makes this all possible.

What is even more exciting is MRGN’s turnkey cloud-based accessibility; what this presages is an ability for investors and third-parties in the future to access MRGN’s platform using APIs and pass-throughs to conduct seamless due diligence on prospective targets already using MRGN’s solution. What this means is highly efficient investment screening as investors will no longer require flat, unformatted excel files to be transmitted back and forth to analyze a company’s performance. What is even more exciting is the ability of investors to astutely monitor the health of their portfolio by leveraging the standardized reporting capabilities of MRGN to winnow pain points in their companies’ businesses. Not only does MRGN create favorable governance abilities for investors but it also allows them to seamlessly partner with their portfolio companies to create financial operating models that can be used to attract investors in future fundraising rounds.

MRGN’s ability to incisively simulate various scenarios can help companies and investors understand the various dynamics at play in fundraising rounds vis-à-vis capital type, dilution, runway, burn rate, and debt/leverage. MRGN is truly the heartbeat of a small business because it helps companies and investors partner in understanding and improving the health of growing businesses.

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