SAN DIEGO — The year 2023 has seen a positive uptick in interest from different groups and Multi-State Operators (MSO’s) looking to make acquisitions on cannabis businesses all throughout the state of California and the United States. Industry leading Green Life Business has quickly seen an increase in business acquisitions and businesses going into Escrow which shows a positive movement in the industry.
In 2022, many operators in the cannabis industry as well as many other industries were forced to shut down as business evaluations continued to fluctuate in a market that had seen steady evaluations. In 2022, business evaluations continued to shift on a monthly basis rather than on a quarterly basis which was something that had never been seen in the cannabis industry before. Other operators in the licensing and buildout process were also forced to vacate business plans as many groups ran out of funding. The shutting and closing of these distressed businesses led to businesses landing in the hands of the Court Ordered Receiverships.
Green Life Business Group is a largely recognized cannabis business brokerage that is now the go to for Cannabis Business Receiverships. An example of this is a cannabis retail storefront business project in the highly demanded and desired city of West Hollywood. This project already has $1.5M invested into the buildout in a PRIME location that is about ninety percent built out. The advantage of acquiring a business represented by a receivership is that the business or license has a Judge’s stamp of approval relieving it from any prior liens or debts. It is the cleanest license that can be acquired versus a traditional cannabis business acquisition from a private or public company where prior tax exposure, creditors or vendor debt may be inherited.
Receivership acquisitions are quickly becoming a trend and very desirable as Multi-State Operators and large companies are looking to quickly take advantage of distressed businesses and licenses that offer clean canvas opportunities and no prior debts or liens. 2023 is shaping to be a more positive and lucrative year as large business acquisitions have already kicked off and businesses are quickly going into Escrow.