FVC2352. 2023 Overview of the Marijuana Industry: The Coming Wave of Consolidation and Beyond

The session will explore current trends and engagement opportunities in the cannabis industry. The continuing conflict between federal and state laws and regulations, coupled with the economic impact of inflation, the illicit cannabis market and the aftermath of the COVID pandemic pause have resulted in a perfect storm for an incredibly unique industry. As of July 1, 2023, recreational use marijuana is currently legal for adults in 23 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 where owners, managers and advisors to state legal marijuana businesses can be accused violating federal law.

Learning Objectives:

• Identify the nuances within the current landscape and landmines for business appraisal engagements within the state legal/federally illegal marijuana sector
• Distinguish the differences in the application of traditional valuation methods and approaches to the valuation of canna-businesses
• Estimate the tax impact on different kinds of cannabis entities and the effect on valuation
• Recognize the growing importance of brand and location
• Identify sources of industry data