Granulation is actually a necessary step in the healing process; it's part of how the body creates new tissue to fill in a wound. However, sometimes, the healing process gets "stuck" at granulation - it does not progress naturally to the next steps - and in those cases, silver nitrate can usually burn away the excess and "reboot" the process. There really aren't any serious complications, and it's an easy fix. I like to stress that it's a *normal* part of wound healing, though, because that means everyone should expect at least the possibility of spotting some; the issue only arises if it sticks around too long and/or starts overgrowing.
It was described to me as looking like a raspberry: bright red, soft, bumpy flesh that isn't especially painful but bleeds easily.