CAN2409. Cannabis Industry Appraisal Nuances and Conundrums: The Coming Wave of Consolidation and Beyond

The session will explore current trends and challenges in cannabis industry appraisals. The continuing conflict between federal and state law, coupled with significant price volatility; state regulatory differences; the illicit cannabis market; and the aftermath of the COVID-19 pandemic pause have resulted in a perfect storm for an incredibly unique industry. Recreational marijuana is currently legal for adults in 24 states and Washington, DC, while medical marijuana is legal and available in 38 states and DC. At the same time, marijuana remains a Schedule 1 narcotic under federal law, pursuant to the 1970 Controlled Substances Act. Valuing ownership interests and license rights require access to specialized knowledge and knowing where to look for market data and resources.

Learning Objectives:

• Analyze the current landscape and landmines for professional engagement within the state legal/federally illegal marijuana sector.
• Identify the differences in the application of traditional valuation methods and approaches to the valuation of cannabusinesses.
• Recognize the growing importance of brand and location.
• Determine sources of industry data.