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November 22, 2018
10 Metrics to Add to Your Dashboard When Struggling with Portfolio Monitoring and Revenue Optimization
By: SBI
Today many private equity firms are looking to improve the operating efficiency of their portfolio companies. Driving consistent organic revenue growth is a necessity given the high multiples that are being paid. It creates the most value but is also very difficult to do. Many firms are looking to build standardized set of plays and benchmarking across their portfolio. When implemented properly, this can provide the companies and the PE firm tremendous value.
Download the 10 PE Metrics for Portfolio Optimization Tool to leverage 10 metrics you should incorporate into your portfolio dashboard to ensure you have visibility into how they are performing compared to their peers, and to gain an operational advantage over your peers.
Don’t Settle for Poor Visibility
In addition to the individual company benefits from increased operational visibility there are a number of benefits at the firm level. Firms can gauge the overall strength/weakness of the portfolio. They can identify common challenges or trends that might be impacting multiple portfolio companies and take corrective action. It enables deal teams and operating teams to spot warning signs early on. Finally, it allows PE firms to evaluate and compare talent across the portfolio.
The 10
Here are 10 metrics you should incorporate into your portfolio dashboard to ensure you have visibility into how they are performing compared to their peers:
Create an Investment Edge
These 10 transcend industry and vertical and can be applied across the portfolio and aside from the Return on Marketing Investment should be fairly straightforward for your management teams to capture and report on.
There are many more metrics and KPI’s that can be tracked. Here are some SAAS specific metrics.
These metrics should be benchmarked against companies of similar industry and stage. More importantly they should be monitored to determine how business decisions are impacting these metrics. Sudden increases or decreases in these metrics should be flagged for further investigation by the deal or operating team.
By adding this capability to your tool box you’ll be gaining an operational advantage over your peers.
Download the 10 PE Metrics for Portfolio Optimization Tool to leverage 10 metrics you should incorporate into your portfolio dashboard to ensure you have visibility into how they are performing compared to their peers, and to gain an operational advantage over your peers.
Additional Resources
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