Welcome to FP&A Tomorrow, where we discuss financial planning and analysis, examining its current state and future prospects, with your host Paul Barnhurst.

In this episode of FP&A Tomorrow, host Paul Barnhurst dives into the world of growth equity investing with Ryan Sanders, a seasoned investor from Mercato Partners. The conversation explores the critical role of FP&A (Financial Planning and Analysis) in supporting growth-stage companies, the nuances of growth equity investing, and how entrepreneurs can best position themselves for success. Ryan shares insights from his extensive experience, offering valuable lessons on what it takes to scale companies in today's competitive market.

Ryan Sanders is a growth investor at Mercato Partners, a growth equity firm based in Salt Lake City, Utah. With a background in finance and an MBA in entrepreneurship from the University of Texas, Ryan has a deep understanding of what it takes to support and scale innovative companies. His career spans various roles in investment, and he is known for his strategic approach to partnering with entrepreneurs. Ryan also recently completed the Kauffman Fellows program, which has further enriched his expertise in venture capital and growth investing.

Expect to Learn:

1. The key attributes and skills that FP&A professionals need to excel in supporting growth-stage companies.
2. The importance of customer-centric growth and why organic growth strategies often outperform inorganic ones.
3. Insights into the investment process at Mercato Partners and how they identify and support promising companies.
4. The role of AI in transforming FP&A functions and the broader finance industry.
5. Practical advice for entrepreneurs on when and how to raise capital effectively.

Quotes:

Here are a few relevant quotes from the episode 

• “For the CEO and for the board and for the investors, the FP&A is most often a partner, demonstrated through accuracy and speed. But perhaps as important are curiosity, comparison, and completeness.” - Ryan Sanders
• “The number one skill, in my opinion, for someone in FP&A has to be effective communication. We’re all in sales.” - Ryan Sanders
• “We’re in the age of AI, and I think AI eats the lunch of vertical functions. If finance believes their only value is debits and credits, I believe that will be obviated over time.” - Ryan Sanders
• “For me, I wanted three things from the Kauffman Fellows program: to be an active learner, to expand my network, and to learn how to become a better support for a CEO.” - Ryan Sanders
• “One of the most interesting exercises is to think about the business through a series or a set of stop lights. Red light, yellow light, green light—that accumulation of answers should drive the decision on the type of financing.” - Ryan Sanders

In this insightful episode, Ryan Sanders shared invaluable lessons on growth equity investing and the critical role of FP&A in supporting successful business scaling. From the importance of curiosity, comparison, and completeness in FP&A to the strategic decision-making processes that drive value in growth-stage companies, Ryan’s expertise offers a roadmap for professionals and entrepreneurs alike. Whether you're an FP&A professional, an entrepreneur, or an investor, Ryan's experiences and advice provide actionable takeaways that can help you navigate the complexities of business growth.

World-class Digital FP&A Course Bundle: 

Signup for over ten hours of video content with 4 different courses and 8 modules on FP&A topics including: Business Partnering, Data Analysis, Financial Modeling Design Principles, and Modern Excel. Use code Podcast to save 25%. What are you waiting for signup now: https://bit.ly/4decOf3

Follow Ryan:

LinkedIn - https://www.linkedin.com/in/sandersryan23/ 

Website - https://www.mercatopartners.com/

Kauffman Fellows Program - https://www.kauffmanfellows.org/

Follow Paul:

Website - https://www.thefpandaguy.com

LinkedIn - https://www.linkedin.com/in/thefpandaguy

Enroll for Financial Planning & Analysis Certificate Program:

Level up your career and build skills for financial planning and analysis. Sign up for the 8 week online financial planning & analysis certificate program by Wharton Online and learn the art of forecasting, analysis, business partnering and financial storytelling: https://bit.ly/4debs46

Earn Your CPE Credit

For CPE credit please go to earmarkcpe.com, listen to the episode, download the app, and answer a few questions and earn your CPE certification. To earn education credits for FPAC Certificate, take the quiz on earmark and contact Paul Barnhurst for further details.

In Today’s Episode

[01:15] - Paul introduces the podcast and guest, Ryan Sanders.

[02:26] - Ryan's background and career path

[07:03] - The role of FP&A in growth investing

[10:26] - The benefits of focusing on customer-driven, organic growth strategies over acquisitions.

[14:51] - Insights into the technical and soft skills that FP&A professionals should develop 

[24:48] - Strategic decision making and financial planning & how FP&A can support this process.

[35:20] - Kauffman Fellows Program Experience

[41:30] - The Impact of generative AI on finance

[51:10] - Conclusion and contact information about Ryan