I have been fairly critical of professional services firms as potential investments of late. Of particular concern is that many compliance-oriented firms are reactive to the then prevailing regulatory environment by nature, and are reliant on "headline risk" issues for work.
I also suggested that the revenue model for these sorts of event-driven, reactive firms can be susceptible to lumpiness because of the nature of the workflow. Lumpiness is not what Wall Street wants to see from investment candidates.
One professional services firm that assuages my fears with...
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