The valuation of companies in the ever-growing cannabis space has become an increasing area of focus within this valuation sphere. Cannabis presents a highly unique valuation landscape given the regulatory environment, increasing popular acceptance of recreational as well as medical usage, and the expanding product mix as between flower, oils and edibles, and challenges and opportunities facing vertically integrated businesses trying to find the right balance as between their cultivation, lab & extraction, manufacturing and retail sectors.
As a reflection of this trendline, many traditional valuation, accounting and investment banking professionals have turned their attention to cannabis and the unique valuation analyses associate with it. For example, FTI has prepared this white paper outlining valuation approaches to cannabis in this evolving market.
We’ll continue to cover cannabis valuation issues and how they are both similar, and very different, from traditional valuation debates.