Cannabis Business Valuation
What a cannabis business is worth depends heavily on things that do not appear on a conventional balance sheet.
What a cannabis business is worth depends heavily on things that do not appear on a conventional balance sheet — license scarcity in your jurisdiction, transferability under state rules, and the fact that 280E suppresses reported net income in a way that makes standard earnings multiples misleading.
We value cannabis operations for sales, partner buy-ins and buy-outs, disputes, financing, and estate purposes.
What's Included
Why This Differs In Cannabis
A buyer applying a normal multiple to a dispensary's reported net income will value it far below what it is worth, because 280E artificially depresses that number. Conversely, a seller who ignores license scarcity in a capped market may leave the most valuable asset out of the calculation entirely. Both errors are common, and both are expensive.
The license may be the most valuable asset you own, and it appears nowhere on your balance sheet.
Why MCA
We have served licensed cannabis operators since 2015 — one of the first firms in the country to build a practice around it — and we have worked with more than 100 operators across 30+ states. Cannabis is all we do, and all we have ever done.
Frequently Asked
Will this hold up in a dispute?
Reports are prepared to be defended, with the methodology documented and the intended use stated.
How is license value determined?
Primarily by scarcity, transferability, and comparable transactions in your jurisdiction.
What do you need from us?
Three years of financials and tax returns, license documentation, and lease or property information.