The Tough Comp: How to Sell a Growth Equity Business

A lot of investors were flooding into these software names because of certain tailwinds, whether that was work from home or e-commerce. But as you get into 2021 and 2022, where you see how far the share price performance has dropped, that's when you start facing tough comps. There aren't a lot of businesses out there growing 18% a year with 12% even down margins. If you enter a company at 12 times revenue and have to sell it for eight, there's not a lot of growth... So something has to give.