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That would be down to how they do accusitions, it's not just what they are paying, it's also backedup with a plan and investment. So you get a couple of years
by Zenst 6y ago
That would be down to how they do accusitions, it's not just what they are paying, it's also backedup with a plan and investment. So you get a couple of years of nice big budget and the expectations would be that it would yeild back within that period. Now if those expectations play out, not just the product doing as they expected, but also the customers buying into it as expected. Those two are sepeate beasts. So either the company lives up to expectations and everything aligns and carry's on, or it gets a restructuring, which can take many forms and can happen more than once.
But like anything new, gets fat marketing budget, then after that grace period runs out, they are expected to be self sufficient and yielding a return.
Then even if everything goes well, those expectations and returns will also grow and eventually things change.
But initially, the honeymoon period is always fun, bit like first year at university, then things start to get real, real fast.