(This is an abridged version of a story that appears in the September issue of Marijuana Business Magazine.)
As the U.S. and Canadian marijuana markets continue to mature, consolidation is inescapable.
But cannabis entrepreneurs need to think more in terms of bigger buyers and smaller sellers, not winners and losers, in the race for market share.
That, of course, raises the question of how marijuana businesses can put themselves in the best situation to take advantage of opportunities that could arise from consolidation.
Certainly, a key move is making a marijuana company as attractive as possible to potential acquirers.
But would-be buyers will not be interested in purchasing a cannabis firm unless it’s well run.
So it’s not as simple as saying a marijuana company is available for acquisition.
Cannabis industry insiders who spoke with Marijuana Business Magazine offered some key points for entrepreneurs to consider when weighing an exit strategy:
- Have a defined exit strategy.
- Decide whether it’s better to be acquired or to go public.
- Factor in the role of large mainstream retail companies.
- Get your firm’s financial house in order.
- Be realistic about your goals.
Marijuana Business Magazine also takes a deeper dive into whether it’s better to be acquired or go public.
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