Look beyond customer count to assess marijuana revenue concentration

(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.

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