Who We Serve › VC & Private Equity

Payments Are a
Hidden Lever in
Every Portfolio.

Most vertical software companies touch merchants who process payments every day - but few have a structured payments monetization strategy in place. MARGN provides the payments expertise most VC and PE firms don't have in-house, helping you assess the opportunity before you invest, execute on it post-close, and document the value creation story at exit.

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Opportunity Assessment
What is the payments monetization potential in this vertical software company? We size the opportunity before you close
Payments Partner Evaluation
Structured RFP and selection - finding the right processor for the holding's merchant base and product requirements
Revenue Modeling
Partnership economics modeled across scenarios so you and the portfolio company go in with clear expectations
Exit Documentation
Payments revenue quantified and narrativized - a documented value creation story that acquirers pay a premium for

Three Stages. One Consistent Lever.

Payments monetization is a value creation opportunity at every stage of your investment in a vertical software company.

Pre-Investment

Opportunity sizing & diligence

Most deal teams don't have deep payments expertise. We assess the target's payments monetization potential - merchant volume, product readiness, competitive landscape, and revenue opportunity - so you understand the payments upside before you commit capital.

Post-Acquisition

Execution & value creation

We work directly with the portfolio company to run a structured payments partner evaluation, model the revenue economics, and support implementation. The goal is a live, revenue-generating payments partnership - not a deck that sits in a drawer.

Exit Preparation

Documentation & narrative

A payments revenue stream - properly documented and narrativized - is a meaningful value driver in a sale process. We prepare the payments section of your management presentation, CIM, and data room so buyers understand and value what's been built.

Understand the Payments
Opportunity Before You Close.

The payments monetization potential of a vertical software company is rarely assessed during a standard deal process - but it can be a meaningful driver of post-close value creation. MARGN delivers a dedicated payments opportunity assessment that answers the questions your deal team can't: How large is the merchant base? What volume flows through it? What's the realistic revenue potential? What's the right monetization path? Is the product ready to execute?

  • Merchant base analysis - volume, verticals, and payments readiness assessed
  • Monetization path identified - Semi-Integrated, Integrated, ISO/referral, PayFac-as-a-Service, direct registry
  • Revenue opportunity sized - realistic economics modeled before LOI
  • Product readiness assessed - technical and commercial requirements mapped
Sample Payment DD Checklist
✓
Processor agreements reviewed Clean
!
Effective rate vs. industry benchmark +0.35% above avg
✓
Early termination fee exposure $295 / MID
!
Chargeback ratio (trailing 90 days) 0.9% - watch
✓
PCI compliance status SAQ-B current
-
Post-close savings opportunity $840K / yr est.

Your Vertical Software Holdings
Can Monetize Payments.

If you own vertical software companies, the payments opportunity is likely underexplored. Most vertical SaaS businesses touch merchants who process payments every day - but few have a structured payments partnership in place. MARGN works directly with your portfolio companies to evaluate payments partners, model the revenue opportunity, and execute the integration - turning an untapped capability into a documented value creation story.

  • Payments partner evaluation - RFP and selection run on behalf of the portfolio company
  • Revenue modeling - payments monetization opportunity sized before any commitment is made
  • Implementation support - experienced payments developers available to support integration
  • Value creation documentation - payments revenue quantified for LP reporting and exit materials
Payments Partner Evaluation
Structured RFP and evaluation run on behalf of the portfolio company - ensuring the right processor is selected for their merchant base and product requirements
Revenue Modeling
Partnership economics modeled across scenarios before commitment - so you and the portfolio company know what to expect
Implementation Support
Access to a network of experienced payments developers to support integration, testing, and go-live at the portfolio company level
Value Creation Documentation
Payments revenue opportunity and realized uplift documented at the holding level - ready for LP reporting, board materials, and exit narratives

A Payments Revenue Stream
Is a Better Valuation Story.

Acquirers in the vertical software space increasingly expect a payments revenue stream - and they pay a premium when it's in place, properly structured, and well-documented. MARGN prepares the payments layer of your portfolio company's exit story: the revenue run rate, the partner relationship, the technical infrastructure, and the narrative that frames it as a durable, growing revenue line.

  • Payments revenue documented - run rate, growth trajectory, and partner terms prepared for data room
  • Partner relationship and contract reviewed - no surprises in buyer due diligence
  • Payments narrative prepared - CIM and management presentation language written
  • Upside framing - payments opportunity still ahead of the buyer clearly articulated
Revenue Documentation
Payments revenue run rate, growth trajectory, and economics documented and packaged for the data room
Partner Contract Review
Payments partner agreement reviewed for terms, exclusivity, and transferability - no buyer surprises
Payments Narrative
CIM and management presentation language written for the payments section - framing the revenue stream and the upside ahead
Valuation Positioning
Payments revenue framed in the context of comparable transactions and acquirer expectations in the vertical software space

Built Around Your Investment Timeline

We work around your deal and hold timeline - not the other way around.

1
Pre-LOI
Initial Payments Opportunity Screen
A rapid assessment of the target's merchant base, payment volume, current payments relationship (if any), and preliminary revenue opportunity. Designed to inform your investment thesis - not slow down the deal.
2
Due Diligence
Full Payments Opportunity Assessment
Comprehensive analysis of the payments monetization opportunity - merchant base depth, volume, monetization path options, revenue modeling, and product readiness. Delivered as a standalone report or integrated into your existing DD process.
3
Post-Close
Payments Partner Evaluation & Selection
We run a structured RFP on behalf of the portfolio company, model the economics of each option, and support contract negotiation - so the company selects the right partner, not just the most familiar name.
4
Hold Period
Implementation & Revenue Ramp
We support the integration through go-live - providing developer network access, QA support, and ongoing advisory as the payments revenue ramp begins. Available as a retained engagement or milestone-based.
5
Pre-Exit
Payments Exit Readiness
Payments revenue documented, partner contract reviewed, and the payments narrative written for the CIM, management presentations, and data room - so buyers understand and value what's been built.

What PE & VC Clients Ask

 

How quickly can you turn around a pre-LOI payments opportunity screen?+
We can deliver an initial screen within 48 hours of receiving basic information about the target - company overview, approximate merchant base size, and current payments setup if known. A full opportunity assessment with revenue modeling typically takes 5–7 business days. We're accustomed to working within deal timelines and can expedite when needed.
How does MARGN charge for VC and PE engagements?+
VC and PE engagements are structured as consulting engagements - we charge a fee based on the scope and stage of the work. Pre-LOI screens, full DD assessments, partner evaluations, and exit preparation are each scoped and priced separately. We're happy to discuss the right structure on an introductory call.
What types of vertical software companies are the best fit?+
The best fit is a vertical SaaS company with an existing merchant base - businesses that use the software and accept payments as part of their day-to-day operations. Restaurant management, field service, healthcare, retail, and hospitality platforms are common examples. The key criteria are merchant volume, product stickiness, and a distribution relationship that makes a payments partnership commercially viable.
What if the portfolio company already has a payments partner in place?+
That's actually a good starting point. We assess the existing relationship - terms, economics, exclusivity, and whether the current partner is the right long-term fit. In many cases there's an opportunity to renegotiate terms, expand the scope of the relationship, or explore whether a different partner would generate meaningfully better economics. We approach every existing relationship with the same structured evaluation we'd apply to a new one.

Ready to Talk About Your Portfolio?

Whether you're evaluating a new investment, optimizing a current holding, or preparing for exit - we can help you find and capture the payments opportunity.

Request a Portfolio Review