Cannabis Business Valuation

Will 2021 be the year the cannabis industry makes a comeback?

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

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

The M&A panel at yesterday’s Cannalaw conference addressed what valuation techniques are being used to determine the purchase price of a marijuana company.  While in recent years the traditional valuation metrics would normally be utilized – whether multiples of sales, revenues or EBITDA, for instance – the current market is experiencing a supply/demand imbalance, as

IRS & Business Taxation of the Cannabis Industry

Given the rapid developments in the cannabis space — with 15 states having now legalized recreational marijuana and 21 states allowing medicinal use — approaches to the valuation of cannabis companies continues to evolve.  In this new piece by EisnerAmper, the firm makes the case for utilizing any combination of an Asset Approach, Income

New Law Enforcement Challenges: Is it Marijuana or Hemp? - Cannabis Business Times

As reported in this Law360 piece, “Illegality Nixes Most of Marijuana Investment Scheme Suit,” a Colorado judge dismissed an investor’s fraud claim against the principal behind an investment vehicle whose strategy revolved around the Colorado cannabis industry.  The court found that the relief sought would violate the Controlled Substances Act, underscoring the perils of

Marijuana Business Opportunity Cannabis Business Start Marijuana Business Cannabis Events

As reported by Law360 here, state regulators in California have proposed regulations designed to decriminalize under state law activities by banks and accountants working with the cannabis industry, purporting to ease access to financial services for marijuana businesses.  Such state legislation appears more symbolic than realistic, however, as most banks will continue to refuse