The cannabis industry is rapidly growing, and with that growth comes new opportunities for entrepreneurs to enter the market. If you're considering buying or selling a cannabis business, it's important to understand the legal landscape and regulations surrounding this industry. Each state has its own laws regarding marijuana sale and use, making it crucial to seek legal counsel before making any major business decisions.
Market Snapshot
Number of Businesses Analyzed
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~240
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Median Asking Price
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$1,500,000
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Median Reported Revenue
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$1,670,000
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Median Reported Earnings
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$500,000
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Profit Margin
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30%
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Earnings Multiple
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3.0
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Revenue Multiple
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0.9
|
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings.
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We have aggregated listing information on cannabis businesses for sale to provide some context on this unique market. Keep in mind that these numbers are constantly changing, and every business is unique, requiring research and due diligence before making any decisions.
How many cannabis businesses are currently for sale?
Based on our latest analysis, there are approximately 350 cannabis businesses on the market.
Where are most cannabis businesses listed for sale?
The majority of cannabis businesses for sale are found in:
- California
- New Jersey
- Colorado
- Oregon
- Michigan
- Massachusetts
- New Mexico
- Maine
- Oklahoma
- Montana
- Washington
What is the average asking price for these businesses?
The median asking price for cannabis businesses that we've analyzed is $1,500,000.
What is the average revenue and earnings?
On average, these cannabis businesses have reported a median revenue of $1,670,000 and median seller discretionary earnings of $500,000, indicating a robust profit margin of about 30%.
What are the average valuation multiples for cannabis businesses?
The earnings multiple averages at approximately 3.0, while the revenue multiple is around 0.9, based on businesses that have listed complete financials.
How can business owners sell their cannabis business?
Cannabis business owners can either hire a business broker, typically incurring a 10-15% commission fee, or choose to list their business and manage the sale of their business directly.
Remember, selling a business is a significant decision and requires due diligence, market analysis, and sometimes, the counsel of experienced professionals. It's a mix of strategic foresight and practical action—make sure you plan accordingly and consider all possible outcomes before you proceed.