Author: Armen Grigorian, Managing Partner, Redmount Capital Partners LLC.
A lesson I learned by co-investing with private equity sponsors and observing their value-creation process and skills.
✅ A business that tracks the wrong metrics is flying blind.
I’ve seen companies obsess over revenue but ignore cash flow. Or focus on growth at the expense of profitability. The best companies track KPIs that truly drive long-term value, such as:
✔️ Return on Invested Capital (ROIC)
✔️ Free Cash Flow (FCF)
✔️ Customer Lifetime Value vs. Acquisition Cost
As an investor or a board member, I want to ensure that management is measuring what actually moves the needle.
💬 What’s the most important KPI you track—and why? Drop your thoughts in the comments or LinkedIn message me to discuss it confidentially.