For growing businesses that spend heavily on R&D or sales/marketing, you need to estimate 'maintenance R&D' or 'maintenance sales and marketing' to determine what margins will look like when the business matures, similar to estimating maintenance capex for capital-intensive businesses
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Scott McBrideEvidence Quote
“for a business that's spending a lot on R&D we try to think about what is maintenance R&D or spending a lot on sales and marketing what is maintenance sales and marketing meaning what are margins going to look like when the business matures”
Created: 8/11/2026, 7:48:51 AM
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