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Cannabis and CBD
Business Valuation

Get an appraisal of your Cannabis Business.

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Cannabis business owners trust BizWorth to provide accurate appraisals of their business

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BizWorth reports are completed by NACVA certified appraisers who are available to answer your questions and explain your report.

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How do you value a Cannabis Business?

Valuing a cannabis business can be a complex and multifaceted process, given the unique challenges and regulations associated with the industry. The first step in determining the value of a cannabis business involves assessing its assets and financial performance. This includes evaluating the company's revenue, profitability, and cash flow. Analyzing historical financial statements and projections for future growth is crucial, as the cannabis industry is often characterized by rapid changes and evolving market dynamics.

Additionally, it's essential to consider the market and competitive landscape. Factors such as the business's market share, customer base, and brand reputation can significantly impact its value. Moreover, regulatory compliance and licensing play a critical role in the valuation of a cannabis business, as the industry is heavily regulated in many regions. The scarcity and value of licenses, as well as the potential risks associated with changing regulations, should be factored into the assessment. Finally, qualitative factors, such as the management team's expertise, the business's growth potential, and its strategic position within the industry, can also influence its overall value. In sum, valuing a cannabis business requires a combination of financial analysis, market assessment, and an understanding of the unique challenges posed by the regulatory environment in which it operates.

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Valuation Approaches of a Cannabis Business

Valuing a cannabis business involves employing several common valuation approaches, similar to those used for businesses in other industries. However, the unique challenges and regulations of the cannabis industry necessitate a tailored application of these approaches. Here are three primary valuation approaches for a cannabis business:

Income Approach:

  • Discounted Cash Flow (DCF) Analysis: This approach estimates the present value of the expected future cash flows generated by the cannabis business. DCF analysis takes into account revenue, expenses, and potential growth. Due to the cannabis industry's volatility and evolving legal landscape, creating reliable cash flow projections can be challenging, making DCF analysis sensitive to the accuracy of these forecasts.

Market Approach:

  • Comparable Company Analysis (CCA): CCA involves comparing the cannabis business to similar publicly traded or privately held cannabis companies. This approach considers metrics such as price-to-earnings (P/E) ratios, price-to-sales (P/S) ratios, or price-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) multiples of comparable companies. However, finding truly comparable cannabis businesses can be challenging due to the industry's unique characteristics.

Asset-Based Approach:

  • Asset Valuation: This approach focuses on the underlying assets of the cannabis business. It assesses the value of tangible assets, such as real estate, equipment, and inventory, as well as intangible assets like intellectual property and licenses. Due to the cannabis industry's heavy reliance on licensing and regulatory compliance, the value of licenses and permits often plays a significant role in this approach.

These valuation approaches can be used individually or in combination to arrive at a more comprehensive estimate of a cannabis business's value. However, due to the industry's evolving nature and the regulatory constraints it faces, the process often requires careful consideration of various factors, including the specific market dynamics, competitive landscape, and the legal and operational challenges that cannabis businesses encounter. Professional expertise in cannabis industry valuation is often crucial to arriving at an accurate and reliable assessment of a cannabis business's worth.

Valuation Reports for a Cannabis Business

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Why Choose BizWorth for Your
Business Valuation?

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Industry Expertise

Our team specializes in your industry, offering tailored insights and accurate valuations that reflect the unique dynamics of your business.

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Comprehensive Assessment

We consider all aspects, from financial metrics to reputation, ensuring a holistic evaluation that captures your business's true value.

Transparent Process

Our valuation methods are transparent and tailored to your business, giving you a clear understanding of how we arrive at the determined value.

Empowered Decisions

Whether you're buying, selling, or planning for the future, our valuations empower your decisions, guiding you towards the most strategic and profitable outcomes.

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The BizWorth Certified Difference

A lightweight valuation is a big risk that can end up costing you thousands – or even millions – of your hard-earned money. When you need an appraisal, the last thing you have time to worry about is whether your report will stand up to scrutiny.

Thanks to our deep valuation expertise, comprehensive access to market data, and unwavering commitment to NACVA professional standards – you won’t have to. From buy/sell agreements to litigation support, our in-house team of certified appraisers will ensure your valuation is as solid as the foundation your business was built on.

I need to feel confident that I can take my report to a bank, investor, attorney - whomever I want - and that what’s in the report is accurate. I like that your reports are certified, easy to read and easy to understand.
Victor A., Business Owner
The information and guidance really helped us put things in perspective and taught exactly what we needed to do in selling our small online business.
Leila M., Business Owner
Working with BizWorth for our first business valuation was so incredibly easy and helpful. We were worried we wouldn’t get all of the value we saw in our business in the sale, but their expertise and report gave us a lot of confidence.
Carolyn T. Business Owner
Highly recommended.
Provide amazing value
Very talented team.
Definitely reach out.
Honest, hardworking, extremely competent.
Well worth the investment.
Give you real numbers to negotiate with.
Extremely organized.
Super-smart people helping companies succeed.
Business Valuation Experts

Get an expert Cannabis Business Appraisal

Shelia Darby, Managing Director of BizWorth

Shelia Darby

Managing Director, BizWorth

Serves as the managing director of BizWorth. Shelia's valuation experience spans nearly 25 years. The focus of her recent work has been on litigation engagements. Shelia is an elected member of the Ethics & Oversight Board of NACVA. Shelia is a Certified Valuation Analyst (CVA), Certified Master Analyst in Financial Forensics (MAFF) and a Certified Machinery and Equipment Appraiser (CMEA). She holds a bachelor's degree in finance from Baylor University and an MBA from Rice University.

Jon Donnel, Managing Director of Advisory at BizWorth

Jon Donnel

Managing Director, Valuation Advisory

Leads the Valuation Advisory Practice focused on complex valuations, loss profit calculations, partner buy-outs and disputes. Jon has held senior-level director positions for Fortune 50 companies and investment banks. He is a Certified Valuation Analyst (CVA) and holds a bachelor’s degree in economics and an MBA from Rice University.

Robert Brand

Director, Business Valuation

Leads BizWorth’s informational and certified business valuation practice. Robert is an officer of NACVA's Houston State Chapter and serves as the treasurer of Houston's Texas Association of Business Brokers. He is a Certified Valuation Analyst (CVA). Robert is a former Combat Engineer serving in Iraq for the U.S. Army and holds a bachelor's degree in finance from University of Houston.

Renee Schreier

Director of Operations

Manages BizWorth's operations and strategic planning initiatives, report production and customer applications. Renee serves as the secretary of Houston's Texas Association of Business Brokers and was a former operations administrator with Accenture. She holds a bachelor’s degree from Texas Lutheran University.

Joseph (Joey) Wilson

Senior Market Analyst

Leads BizWorth's industry and market research initiatives. Joey was a former production analyst with Scotiabank. He holds a BBA and Master of Finance degrees from the University of Oklahoma.

Dan Darby

Director of Pitch Books & CIMs

Leads Pitch Book and CIM report production. Former management consultant with several Big 5 and Fortune 50 companies. Holds a bachelor’s degree in Business Administration from Baylor University and a Master of Science in Organizational Leadership from Northwestern University.

Shelia Darby
Managing Director, BizWorth
Serves as the managing director of BizWorth. Shelia's valuation experience spans nearly 25 years. The focus of her recent work has been on litigation engagements. Shelia is an elected member of the Ethics & Oversight Board of NACVA. Shelia is a Certified Valuation Analyst (CVA), Certified Master Analyst in Financial Forensics (MAFF) and a Certified Machinery and Equipment Appraiser (CMEA). She holds a bachelor's degree in finance from Baylor University and an MBA from Rice University.
Jon Donnel
Managing Director, Valuation Advisory
Leads the Valuation Advisory Practice focused on complex valuations, loss profit calculations, partner buy-outs and disputes. Jon has held senior-level director positions for Fortune 50 companies and investment banks. He is a Certified Valuation Analyst (CVA) and holds a bachelor’s degree in economics and an MBA from Rice University.
Shelia Darby
Managing Director, BizWorth

Serves as the managing director of BizWorth. Shelia's valuation experience spans nearly 25 years. The focus of her recent work has been on litigation engagements. Shelia is an elected member of the Ethics & Oversight Board of NACVA. Shelia is a Certified Valuation Analyst (CVA), Certified Master Analyst in Financial Forensics (MAFF) and a Certified Machinery and Equipment Appraiser (CMEA). She holds a bachelor's degree in finance from Baylor University and an MBA from Rice University.

Jon Donnel
Managing Director, Valuation Advisory

Leads the Valuation Advisory Practice focused on complex valuations, loss profit calculations, partner buy-outs and disputes. Jon has held senior-level director positions for Fortune 50 companies and investment banks. He is a Certified Valuation Analyst (CVA) and holds a bachelor’s degree in economics and an MBA from Rice University.

Robert Brand
Director, Business Valuation

Leads BizWorth’s informational and certified business valuation practice. Robert is an officer of NACVA's Houston State Chapter and serves as the treasurer of Houston's Texas Association of Business Brokers. He is a Certified Valuation Analyst (CVA). Robert is a former Combat Engineer serving in Iraq for the U.S. Army and holds a bachelor's degree in finance from University of Houston.

Renee Schreier
Director of Operations

Manages BizWorth's operations and strategic planning initiatives, report production and customer applications. Renee serves as the secretary of Houston's Texas Association of Business Brokers and was a former operations administrator with Accenture. She holds a bachelor’s degree from Texas Lutheran University.

Joseph (Joey) Wilson
Senior Market Analyst

Leads BizWorth's industry and market research initiatives. Joey was a former production analyst with Scotiabank. He is a NACVA Certified Valuation Analyst (CVA) holds a BBA and Master of Finance degrees from the University of Oklahoma.

Dan Darby
Director of Pitch Books & CIMs

Leads Pitch Book and CIM report production. Former management consultant with several Big 5 and Fortune 50 companies. Holds a bachelor’s degree in Business Administration from Baylor University and a Master of Science in Organizational Leadership from Northwestern University.

Jack Nielsen
Financial Analyst

Leads financial analysis to support preparation of valuation reports and pitch books. Holds a Bachelor of Science in Economics from Texas A&M University.

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