Valuing sudden jumps in profit
May 25, 2022
by a professional from Bishop's University in Moncton, NB, Canada
Chris sent me an email asking about whether fast-growing companies were extra-risky?
Well, it depends on where the growth comes from.
But, there is another risk in buying a fast-growing company.
The risk that if the deal doesn’t close quickly, the seller will second-guess the price and/or other factors.
I get deep into the ‘it depends’ weeds on this week’s video…: https://youtu.be/9tSTgnUiReg