for cannabis business owners & investors
Identifying potential deals
Transaction and closing
Post M&A integration
I Identifying potential deals
Difference is Opportunity
M & A can be a source of new opportunities for businesses.
Our sweet spot
Global Small & Middle Market
Transaction & closing
Sure & Simple
Post M&A Integration
The Bridge between Owners & managements
We specialize in the post M&A integration process. After the closing, we monitor and analyze the business and communicate with management and owners on timely basis.
We can bridge the gap between the two sides and ensure seamless integration.
Frequently Asked Questions
It is always best to sell a business when you want to do so rather than when you have to. That means you go to market when you and the company are fully prepared. In a perfect scenario, you may be able to time your exit to match the solid performance of your business with peak selling cycles in the private capital markets. The earlier you start the planning process, the more control you will have over this decision.
There are numerous methods and metrics to determine the value to your company. Sometimes we employ many at the same time. Tax value, Estate Value, Enterprise Value, Discounted Cash Flow, Multiples of EBITDA, etc. all are valid ways to tell what a company may be worth. However, the real question is to whom does the value matter, and in what context? The number your CPA gives you might be appropriate for tax planning purposes, but it does not reflect the possible selling price for your company. In an M&A scenario, the acquirer determines value. An M&A advisor will use various methods to help you understand how the market will appreciate your company and what that market may be willing to pay you for it.
Things that reduce the value of a company are usually tied to factors increasing the risk associated with the investment. Incomplete and/or unreliable financial records are the greatest value detractors. Customer concentration and strong owner dependence are two other issues often cited as making a potential deal less attractive.
While there are many things that can contribute to an increase in company value, overall risk to the investment has the greatest impact. Most often, we find these centered on consistent growth rates, recurring revenue streams, and strong synergies with other companies in the same industry.
The process usually starts with a review of three to five years of financial records, including tax returns, asset schedules, management profiles, photos of facilities and equipment, summaries of intellectual property (patents, copyrights, etc.) documentation, copies of deeds and leases, and organizational papers. From there we determine what else is required to market your company.
CannDeal customizes the process for each company. Typically, we start with Zoom calls and meetings to determine owner strategy and expectations. We then collect data and prepare marketing materials to attract potential buyers and investors. Our advisors work with those buyers and investors to answer questions, and solicit offers for your business. We work to negotiate term sheets and finalize the Letter of Intent. The next step is to assist with the management of the due diligence process, in order to ensure the buyer/investor has enough information to feel comfortable with the deal, and to secure financing. Moreover, the entire process requires an enormous amount of legal paperwork, and other forms of documentation. We work with the lawyers and accountants involved in the process, in order to ensure that they have what they need to prepare an appropriate purchase agreement. This simple summary of major tasks only highlights what is involved.
The answer is longer than we can fit in this space! Our team will work to understand your needs, and help you fulfill your acquisition goals.