Buying a Cannabis Business: Step By Step

I often write about various discrete aspects of cannabis M&A transactions. A full list of my posts, along with other Canna Law Blog contributors’ posts, is linked at the bottom of this post. Today, rather than looking at individual elements of a cannabis M&A transaction, I want to walk through what a transaction looks like from start to finish.

Step 1: Find the Deal

It almost sounds too obvious , but the first step in any cannabis M&A transaction is to find a potential deal. Usually, one or both of the parties (buyer and seller) will use a broker or agent to connect them. Sometimes, a buyer will “cold call” or drop in to an active business and try to talk up a deal. Parties may meet at trade shows or other places and begin talks.

When a seller goes to a broker, it usually will give basic information about the terms the seller wants in the sale, most importantly, the desired purchase price. When parties meet face-to-face at a trade show or otherwise, there’s usually way more room for negotiating on big picture terms. This brings me to step 2.

Step 2: Initial Negotiations

Once a prospective buyer and

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