Valuations & Acquisitions: Sharks Are Circling, Blood’s in the Water

Tabibi reasons that huge technology investments are needed for some of these companies to survive. “The longer the wait, the lower their sales and valuations will be,” he says. It’s a simple matter of economics: Fewer sales means fewer profits means lower margins. And Tabibi predicts the economy will get worse, not better. That means it’s only a matter of time before he and the other sharks start their feeding frenzy.