Cannabis business valuation methods naturally differ from standard and accepted practices. This guide to business valuation is from late 2016 but the factors in valuing a cannabis business are still right on target and many of the things that need to be taking into consideration haven’t changed at all. There are cannabis business expenses that are disallowed and treated differently by the IRS that effect a business’ value. There is a changing political landscape and even as the industry strengthens and moves towards maturity, data such as general sales figures and consumer trends are often not shared among competitors and often is very slow to be reported. And there is that little issue of the product being sold is still federally illegal.
This is a good guide to download and study because there are even more issues facing the industry is lack of banking, forced underinsurance, etc., etc. etc. Industry consolidation is a natural direction for every industry and cannabis will encounter the same at an increased pace so knowing what the value of your business could prove to be very important. So arm yourself with knowledge and insight. Download this one.