A Systematic Approach to Financial Analysis
Our methodology is built on established analytical frameworks, professional standards, and practical understanding of how analysis supports real decisions.
Return HomeFoundational Principles
Our analytical work rests on principles that have proven effective across various engagements and market conditions.
Objectivity
Analysis should be independent and free from conflicts of interest. We don't have proprietary positions in companies we analyze or relationships that could bias our perspective. The goal is to tell clients what we see, not what they might want to hear.
Rigor
Thorough analysis requires examining available data systematically. This means checking assumptions, testing sensitivities, and considering alternative perspectives. Conclusions should be supported by evidence and logical reasoning rather than intuition alone.
Clarity
Complex analysis should be communicated clearly. This means avoiding unnecessary jargon, organizing findings logically, and focusing on what matters most to the decision at hand. Clients should understand both the conclusions and how we reached them.
Relevance
Not every analytical technique applies to every situation. The approach should fit the question being asked and the decision context. This means understanding what information matters most and allocating analytical effort accordingly.
Why These Principles Matter
These aren't just theoretical ideals. They represent what we've found works in practice when supporting real investment and corporate decisions. Clients need analysis they can rely on, presented in ways they can use.
Maintaining these standards requires constant attention, but it's what makes analytical work valuable rather than just adding to information overload.
The Meridian Analytical Framework
While each engagement is unique, our analytical process follows a consistent structure that ensures thoroughness and quality.
Understanding Context
Before diving into numbers, we need to understand the situation. What decision needs to be made? What information would help? What constraints exist on timing or resources? This initial phase shapes everything that follows.
We review available information, identify gaps, and develop a work plan that addresses priority questions. This ensures analytical effort focuses on what matters most.
Financial Foundation
Thorough understanding requires examining financial statements in detail. This means analyzing historical performance, understanding key drivers, identifying trends, and assessing quality of earnings. We look at both reported figures and underlying economics.
For transactions, this includes normalizing for non-recurring items and understanding how financial results might appear on a standalone basis. The goal is clear understanding of financial reality.
Market Context
Companies don't operate in isolation. We examine competitive positioning, industry dynamics, and market trends. This includes identifying key competitors, understanding value drivers in the sector, and assessing how the subject company compares.
For valuation work, this phase includes identifying and analyzing comparable companies and precedent transactions. Context matters for determining appropriate multiples and assessing reasonableness of projections.
Forward Perspective
Historical analysis provides foundation, but decisions require forward perspective. We examine management projections critically, develop independent scenarios, and test sensitivity to key assumptions. This isn't about predicting the future but understanding ranges of possible outcomes.
Risk assessment is integral here. What could go better or worse than expected? What factors matter most? What would early warning signs look like?
Synthesis and Communication
The final phase involves bringing findings together into clear deliverables. This means organizing information logically, highlighting key insights, documenting assumptions and methodologies, and presenting conclusions with appropriate caveats.
Deliverables are structured to support the specific decision context. Investment committee presentations differ from detailed valuation reports, which differ from ongoing coverage updates. Form follows function.
Adapting the Framework
This framework provides structure, but it's not rigid. Some engagements require more emphasis on certain phases. New information might prompt revisiting earlier analysis. The key is maintaining rigor while staying responsive to what each situation requires.
Regular communication throughout the process ensures the work stays aligned with client needs and allows course correction as understanding develops.
Professional Standards and Best Practices
Our methodology incorporates established professional standards and analytical best practices developed by the investment industry.
CFA Standards
Analysis follows CFA Institute standards for investment research including objectivity, independence, and thoroughness requirements.
Valuation Frameworks
Valuation work applies established methodologies including DCF, comparable company, and precedent transaction analysis.
Accounting Standards
Financial analysis incorporates understanding of IFRS and US GAAP accounting standards and their implications.
Quality Assurance Processes
Independent Review
All analytical work undergoes internal review before client delivery. This provides independent check on methodology, calculations, and conclusions.
Documentation Standards
Analyses include clear documentation of data sources, assumptions, and methodologies. This supports transparency and allows others to understand our work.
Sensitivity Testing
Key conclusions are tested for sensitivity to underlying assumptions. This helps understand which factors matter most and ranges of potential outcomes.
Professional Development
Team members maintain professional credentials and participate in ongoing education to stay current with analytical best practices and industry developments.
Limitations of Common Alternatives
Understanding why clients seek independent analysis helps explain what we provide differently.
Sell-Side Research Constraints
Investment bank research serves an important function but operates under constraints. Coverage decisions reflect banking relationships and revenue considerations. Research may be discontinued when banking activity declines, leaving gaps in coverage of mid-market companies.
Independent research doesn't face these constraints. Coverage decisions reflect analytical merit and client needs rather than banking relationships.
Internal Resource Limitations
Building internal analytical capacity requires significant investment in talent, data, and infrastructure. Many organizations need thorough analysis but find the economics don't support full-time specialists in every area they need.
External analytical support provides access to specialized expertise when needed without fixed overhead of maintaining full-time staff.
Generic Valuation Approaches
Some valuation work applies formulaic approaches without deep industry understanding or transaction context. This can produce technically correct numbers that miss important nuances of the specific situation.
Effective valuation requires understanding the industry, the specific company, and how the valuation will be used. Context matters for methodology selection and assumption development.
Insufficient Transaction Due Diligence
Time pressure in transactions sometimes leads to abbreviated due diligence that misses important issues. The rush to close can mean questions don't get fully explored or risks don't get adequately assessed.
Thorough due diligence takes time but saves problems later. Understanding what you're acquiring or investing in before closing reduces surprises after the fact.
What Makes Our Approach Different
Several factors distinguish how we work from other analytical providers.
Focused Client Base
We serve institutional investors and mid-market companies, not retail or mass market. This allows us to maintain analytical depth and responsiveness that broader-focused firms can't provide.
True Independence
No investment banking relationships, no proprietary trading, no conflicts between analytical objectivity and other business considerations. Our only interest is providing quality analysis.
Flexible Engagement Model
We structure engagements around client needs rather than predetermined packages. Whether one-time projects or ongoing relationships, the approach fits the situation.
Responsive Timeline
We understand transaction timing constraints and work to meet them without compromising analytical quality. Regular communication ensures work stays on schedule.
Direct Access
Clients work directly with experienced analysts, not through layers of account management. Questions get answered by people doing the analytical work.
Sector Experience
Work across multiple sectors builds perspective on how different industries function and what drives value in various contexts. This experience informs current analysis.
How We Measure Success
The value of analytical work ultimately shows in how it supports better decisions. Several indicators help assess whether we're delivering value.
Client Retention
Percentage of clients who return for additional work. Repeat business indicates clients find value in our analytical support and want to work with us again.
On-Time Delivery
Engagements completed within agreed timeframes. Meeting deadlines matters when analysis supports time-sensitive decisions.
Client Satisfaction
Clients rating work quality as meeting or exceeding expectations. Direct feedback helps us understand what's working and what needs improvement.
Referral Rate
New clients who come through referrals from existing clients. Willingness to recommend us indicates confidence in our work.
Beyond the Numbers
Quantitative metrics provide useful indicators, but the real measure is whether our analysis helps clients make better decisions. This shows in questions asked, discussions prompted, and confidence expressed in using our work.
Long-term relationships develop when clients consistently find value. The best indicator of success is when clients view us as a resource they can rely on when analytical needs arise.
Meridian Quant Analytical Methodology
Meridian Quant's analytical methodology combines rigorous financial analysis with practical understanding of investment decision-making and corporate transaction dynamics. Established in 2010 and based in Singapore, the firm serves institutional investors, private equity funds, and mid-market companies requiring independent analytical perspective.
The firm's approach to financial analysis emphasizes objectivity, rigor, clarity, and relevance. Each engagement follows a systematic process including context understanding, financial analysis, market assessment, forward perspective development, and clear communication of findings. This structured approach ensures consistency while allowing adaptation to specific situation requirements.
Professional standards guide all analytical work. Team members hold CFA charter and CPA credentials, bringing experience from investment banking, asset management, and corporate finance roles. The methodology incorporates established valuation frameworks, accounting standards understanding, and investment research best practices.
Quality assurance processes include independent review, thorough documentation, sensitivity testing, and ongoing professional development. The firm maintains no investment banking relationships or proprietary trading activities, ensuring analytical objectivity. Client engagement models range from focused project work to multi-year coverage relationships, structured to fit specific analytical needs and decision contexts.
Interested in Our Analytical Approach?
Learn more about how our methodology might support your specific analytical needs. Initial conversations help determine if there's a good fit.
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