Cannabis Business Valuation
cannabis business valuation varies from State to State and because of the many differences with each State implement medical cannabis or adult use marijuana laws it makes it difficult for valuations.
In most cases the main factor is the availability of licenses. Some States have allowed as few as a handful to cultivate and as many as a few dozen retailers. In these cases the barrier to entry is extremely high and generally so is the price tag.
Another factor that makes valuating cannabis businesses particularly difficult, is minimal operational history. Most of this is due to current and recent laws being passed in States where medical cannabis and adult use marijuana is legal.
Our team of advisers can help with determining your companies valuation or your membership interest value. Over the years we’ve assembled an extensive network of other qualified professionals to assist in the process when needed.
Cannabis business projects are unique as well as each State implementing cannabis regulations, you’ll want to check with them to see what is required and allowed when applying for your cannabis business.
For more information on how we can help you, give us a call today.
What is a Valuation?
1. General: Appraising or estimating the worth of something having economic or monetary value.
2. Insurance: Determination of the worth of the asset to be insured or that which has been damaged or lost.
3. International trade: Determination of the dutiable value of imports by the customs authorities. The GATT (now WTO) Customs Valuation Code obligates the signatory governments to use the transaction value (actual price paid by the importer to the exporter) as the principal basis for imposing duties. Where transaction value cannot be used, the secondary basis of value, such as transaction value of identical or similar merchandise, computed value, or deductive value may be used.
4. Securities: Placing a value on a stock based on the market value of the issuer’s assets and the outlook for its earnings.
You can also find additional information through our news and blog site under Applications & Licensing.
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