A sustainable food and agricultural company in North America had previously engaged Sapling to develop an in-depth financial model outlining the operational and return metrics of opening a new farm. Following this, Sapling was re-engaged to build a Monte Carlo (MC) model simulating the return and probability of different strike prices for warrants that the client had purchased
Sapling researched statistical techniques to find the best probability distribution to match the MC model. Historical stock prices and volatilities of sector comparable were found as a baseline for model assumptions
Statistical certainty improves as one increases simulation sizes - Sapling was able to build a MC model in Excel and run 100,000 simulations to generate robust results
The Monte Carlo model was used to layer into an existing financial model detailing operational metrics that Sapling had built for the client
An investment firm focused on providing growth capital has engaged us to perform a detailed review of their investment reporting software, including recommendations for enhancement of the current investment reporting process.
The company was looking for a centralized database to replace outdated software, with the ability to quickly create reports in company specific formats for compliance reporting, and to generate management insights on net asset value trends by class and over time.
