MJBizCon2021 was as explosive as the cannabis industry itself. The range of programs, volume of exhibits and sheer number of attendees, despite the continuing impact of the pandemic, reflected the vibrant and fast-growing cannabis space itself.
Cannabis valuation continues to take center stage in any discussion about the operational, financial or regulatory aspects of the
[RKS Partner Steve Hecht is currently at MJBizCon, the largest Cannabis business conference in the US.]
The diversity of businesses and business lines here at MJBizCon is one of the first things that hits you. While cannabis itself is sometimes thought of as either an agricultural business or a retail business, the reality is
Sports teams often prize the benefits of home-field advantage, but when it comes to valuing a cannabis multi-state operator, playing in your home court does not necessarily result in the highest valuation. As we have posted about before, different states take vastly different approaches to valuation litigation, resulting in the same MSO potentially having
Players in the cannabis space already understand that federal tax law as currently structured extracts a far greater tax bite from marijuana businesses than corresponding companies, as cannabis companies are prohibited from deducting their business expenses from gross income. Of course, with U.S. cannabis sales expected to grow by nearly 2.5x from 2018 to 2025,
The Association for Corporate Growth of Los Angeles hosted a panel on Trends & Transactions in Cannabis Middle Market M&A.
The panel addressed appropriate valuation methods for cannabis companies, with one speaker suggesting that a valuation based on a multiple of EBITDA alone would likely not be sufficient if that were the only method, given
Cannabis valuation issues will continue to grow in importance as the macro industry grows and as market participants continue to engage in transactions that refine the inputs for any valuation analysis.
This piece by Bloomberg BNA [sub] highlights the 34 states that have now legalized cannabis for medicinal use (along with the 19 states allowing
A data-rich thought piece by New Cannabis Ventures makes an interesting case for using a sum-of-the-parts analysis in valuing cannabis companies with diverse operating segments, as that helps filter out any boosted value that might be otherwise be included by a simple EBITDA analysis that inflates the overall valuation by including non-cannabis operating segments. The
Los Angeles Venture Association (LAVA) recently hosted a webinar discussing the recent uptick of merger and acquisition activity over the last six months, and the trends that will impact the future of the market.
Two reasons for the uptick in cannabis industry investments are confidence in the economy and elections which helped legalize cannabis. Momentum
Global X, an ETF provider, provided this thorough but succinct survey highlighting the progress toward cannabis legalization in U.S. states.; this is part 1 of a 3-part series, so more to come. As we’ve noted before, cannabis valuation issues are intertwined with regulatory and legalization issues, an interesting, but not necessarily unique
Cannalaw Conference Wrap-up: What’s Next for Marijuana?
The conference closed with a look ahead to the future of the cannabis industry, patent issues, and emerging psychedelic market. What will we see with regards to patent enforcement? Only two cannabis related lawsuits have been filed to date, one that died. However, there is speculation that