Thinking about taking on an investor or selling your company?
As with real estate, it's important to take into consideration where you are in comparison to your competitors. Once you see where you stand, you can adjust the numbers and test which areas in your business could be improved or should be adjusted further in order to better your position in the market.
- KPI: Investor Index
- DEFINITION: The Investor Index looks at your company from an investment perspective, weighing your performance by growth, value or profitability.
- BENCHMARK: Being above 100 is better than being below 100
- SIGNIFICANCE: If you’re thinking of taking on an investor or selling your company, you want to know where you stand. While the Investor Index is no substitute for a thorough valuation analysis, it does give you a quick take on how your company might be perceived by outside parties.
- RECOMMENDATION: Evaluate your company as a whole to see which areas need more of your attention in order to increase your company’s value in the eyes of investors or buyers.
Companies are generating more data than ever before, but most of it just sits there. Getting good insights from it is often too hard, too costly or just takes too much time. That's too bad because the benefits of being data-driven are substantial. (See The ROI of Big Data, Analytics & Benchmarking for more.) Part of the reason we developed our Big Data, analytics and benchmarking software was to solve this problem so CEOs and senior managers could get the data-driven insights they need to leverage strengths, strengthen weaknesses, identify threats and exploit opportunities. This series of blog posts examines the individual performance metrics that make up that analysis.
For more information on the value of measuring financial ratios, read here.