(This story is part of MJBizDaily’s premium subscription service, Investor Intelligence.)
Due to the highly fragmented legal and regulatory landscape of the cannabis industry, the sources of a company’s revenue can have a huge impact on a company’s opportunity and risk profile.
Your assessment of a company’s risk profile plays a huge role in how you price a potential investment.
Investors traditionally think of revenue concentration as the percent of revenue from a single or a handful of large customers.
Customer concentration is a solid start to framing the opportunity for revenue growth or the risk of a shortfall, but it can be expanded.
Read more about other considerations at Investor Intelligence.