Key KPIs to Monitor Before Raising Funds or Selling Your Company

Key KPIs to Monitor Before Raising Funds or Selling Your Company

Before diving into a major transaction—fundraising, sale, or LBO—it's essential to take a step back.

Why now? Is this the right moment?
The right KPIs can give you an objective, informed answer... and help you avoid acting too soon (or too late).

In this newsletter, we're sharing the key indicators to track to know whether your company is "operation-ready."

📊 KPIs to Track Before a Strategic Transaction

1. Revenue Growth

📈 Goal: Show that the company is on an upward trajectory.
🔎 What to look at: Monthly/yearly trends, 3-year CAGR, seasonality.
🧠 For investors, growth = potential = value.

2. Gross Margin & EBITDA Margin

💰 Goal: Prove the real profitability of your business model.
📐 Gross margin = operational efficiency / EBITDA margin = structural profitability.
🚩 Weak or volatile profitability can be a red flag for some types of investors.

3. Recurring Revenue Rate (MRR / ARR)

🔁 Especially relevant for SaaS or subscription-based models.
🎯 A high recurrence rate gives confidence in revenue predictability.
Bonus: Churn and upsell rates to measure customer loyalty.

4. Operating Cash Flow & Net Cash

🔍 Know whether the company is burning or generating cash.
📉 Too much uncontrolled burn = emergency fundraising.
💡 Strong cash position = strategic fundraising, not survival mode.

5. Client / Supplier Concentration

🚨 If >30% of revenue comes from a single client: proceed with caution.
Goal: Show a healthy, diversified, and low-risk customer base.

6. Structural & Maturity KPIs

🔧 HR turnover
📋 Process maturity (CRM, reporting, governance)
👥 Quality of the management team and level of autonomy

🧭 In Summary:

Before moving forward, ask yourself:
"If I were an investor or buyer, what would I think of these numbers?"

A good transaction always starts with a solid pre-diagnostic.

🤝 Let's Talk About It

We regularly conduct flash audits for business leaders to assess whether their company is ready (or not) for a transaction.

📅 Book a strategic consultation 👉 here
or
📩 Send an email to : l.delannoy@casteldoza.com