The rapidly evolving nature of the cannabis industry has resulted in a flurry of hyperinflated business valuations that make it difficult for businesses to pinpoint fair values as they seek to secure investment or make an acquisition. To help cannabis professionals navigate this complex issue, Rebel Rock CFO and Co-founder Melissa Diaz recently shared her knowledge and expertise in a blog post for the National Cannabis Industry Association (NCIA).
In her blog, Melissa breaks down the most commonly used methods investors apply when determining a business’s value while also highlighting specific challenges for cannabis companies when employing those methods. She also emphasized the importance of cannabis entrepreneurs acting as their own best advocates because nobody knows their businesses better than they do.
Whether pursuing an exit or an acquisition, zeroing in on a fair valuation is key to any strong deal. Rebel Rock can help identify risks and opportunities that may impact any potential investment or acquisition and ensure cannabis companies are well-positioned to close any potential deal. Learn more about due diligence and our full slate of services.