Marijuana Business Magazine January 2019

Marijuana Business Magazine | January 2019 92 Finance FEMALE CANNABIS OWNERS CAN TAKE STEPS TOOVERCOME AN UNEQUAL PLAYING FIELD. Female marijuana business owners and executives still face an uneven playing field when it comes to raising capital. That was one of the messages deliv- ered during a women’s equity panel at MJBizCon. To help overcome such inequities, three female executives offered the following suggestions to their peers: • Look for investors you know have invested in woman-owned companies, said Rosie Mattio, founder of Rosie Mattio Public Relations in New York. • Remind investors that women-owned com- panies “historically and statistically have a better return on investment” than businesses run by men, said Kyra Reed, the CEO of Los Angeles-based social media strategy firm Markyr Digital. • Keep in mind that investors “will judge you very quickly on how passionate, engaged, educated and informed you are about your own product,” said Amy Margolis, a Portland, Oregon-based cannabis attorney and founder of The Initiative, a female-focused business accelerator. (Read more about Margolis on page 51.) “It’s mixing those … in an effective way so (investors) want to provide you that funding.” – John Schroyer Kyra Reed Courtesy Photo Rosie Mattio Courtesy Photo FIVE TIPS FOR SELLING YOUR CANNABIS BUSINESS. If you want to sell your dispensary, grow, edibles company or testing lab, here are five tips: 1. Map out your exit strategy years in advance—and make it as foolproof as possible. According to the Harvard Business Review, “70%-90% of acquisitions are abysmal failures.” “It’s never too soon to start planning your exit … even if it’s five years,” said Dena Jalbert, founder and CEO of Align Business Advisory Services, a mergers and acquisi- tions advisory firm in Florida. 2. Sell your business when it’s doing well financially. “Your business can’t be on the decline when you’re mar- keting it,” Jalbert said. She noted that profit trends over the past couple of years will be crucial. Intangibles such as brand and quality are important, too—but not as vital as your company’s financial performance. 3. Hire expert help such as an attorney, an M&A adviser and a certified public account. “Don’t go it alone,” Jalbert said, noting the average deal requires six months, or 1,000 hours. “Could any of you walk away from your company for 1,000 hours and still be successful?” 4. Get your books and records together ASAP. “The buyers are going to come in and kick the tires,” Jalbert said. Any buyer, for example, will want to verify the profits and assets being purchased. “It’s a painful process, but necessary,” Jalbert noted. To alleviate the pain, hire a part-time chief financial officer. 5. A suitor will want to know more about your company than just its bottom line. According to Jalbert, a buyer will: • Want to see your personnel records and employee handbook, among other things. • Talk with your employees and customers. • Ask “a million questions.” – Roger Fillion It's never too soon to start planning your exit. Courtesy Photo from Deal volumes have increased 3,000% since 2013, and 100% in just the last year Valuations are up 50% from 2017, and 200% from 2013