KPIs for Enhancing Enterprise Value in Manufacturing

This guide is designed for executive leaders of $10M–$50M process manufacturing companies, focusing on key performance indicators (KPIs) that drive enterprise value. It outlines 15 critical KPIs categorized into two groups: those that grow enterprise value and those that protect it. The guide details how these metrics influence valuation conversations, highlighting their importance in demonstrating earnings quality, cash generation, and operational maturity. Each KPI includes definitions, calculation formulas, and common pitfalls to avoid, ensuring clarity in performance visibility. Additionally, the guide presents a KPI Maturity Model and a Due Diligence Readiness Checklist to aid in valuation preparation. The document emphasizes the operational challenges faced by manufacturers in this revenue range, such as margin pressure and production complexity, and how these factors impact financial performance and buyer perceptions during due diligence. Overall, it serves as a comprehensive resource for improving operational performance and positioning for future investments.