Mon, 17 October 2016
On today's show we discuss the different types of revenue growth and their impact on company valuation. Our guest is Charlie DeLacey, the vice president of corporate development and strategy at the Kenan Advantage Group. Kenan is a $1.5 billion dollar transportation and logistics business.
Charlie is responsible for driving and shaping the strategy of Kenan Advantage Group, who has experienced 10-15% growth on an annual basis.
The types of growth discussed include organic and inorganic, and the different returns on capital each type of investment drives. For example, given the opportunity to grow the same amount of revenue through organic or inorganic, Charlie explains that typically organic growth will drive greater value creation. However, there are other variables such as time, capital requirements and execution risks. Charlie describes how to make the decision between organic and inorganic growth.