It surprises some clients that we are now focusing as much on incremental margin as we are on top-line growth. To be clear, we’re not against growth. High revenue growth rates drive higher valuations. But we’re increasingly seeing that, except in cases of companies with massive top line growth, most acquirers and investors are also looking hard at sustainability. And for many of them – measuring incremental margin is a key sustainability metric.
May 26, 2016