Land/Business Acquisitions and Investment
Investor Acquisition and Closing
For cannabis businesses, like all businesses, obtaining investors and capital is critical for success in the industry. However, in this industry, finding willing investors or venture capital can be difficult. Many investors shy away after initial investigation because they believe the industry has too much risk, or there is no certainty provided by the Company’s pro forma and available data (to them) to assure that there is a sufficient possibility of actual return on investment. Hunter Green can help businesses in all of these areas; namely, finding investors, compiling the data and information necessary to convince them to take the risk of investing, and closing the deal.
First, Hunter Green Consulting Group has connections with a number of both small and large investors and venture capital firms that are looking for a variety of opportunities to invest in the marijuana industry, not only on the retail side, but also for cultivation and manufacturing. If your cannabis business is at the point where you believe you simply need capital to move your business forward, Hunter Green Consulting can help you make those connections and get you in the room with potential investors. However, there are other considerations that you need to have resolved before any deal can be closed, and we can assist with those issues as well.
In order to convince the investors of your business’s viability and worthwhileness, you will likely need a pro forma and a business plan. Of course, you will need to have a business plan for your State and Municipal applications for a commercial marijuana operator’s license as well. Hunter Green has prepared many business plans, some for investors, others for commercial licensing. Even here, there are efficiencies that Hunter Green can provide. The business plan for State Licensing will be much longer and far more in depth than what many investors are looking for, but much of the information is the same. Hunter Green can provide a business plan that will be compliant for State and Municipal licensing, and another for investors that can be tailored to the issues that investors are looking for, as opposed to what the State or a city, township or village will be looking for from an applicant. Our approach on both sides has been effective. We have closed millions of dollars-worth of deals for businesses, from growers and cultivators to provisioning centers and secured transporters. We have also consulted on many applications, and can say that all licenses to municipalities for licensing our members or principal managers have been involved with have been approved.
One of the biggest complaints that we have heard from potential investors is that there isn’t enough data to accurately determine whether the investment is worth the money. These complaints don’t just come from smaller investors either. All investors want some assurance that their money is going to be well invested and result in profitable returns. While much of the data they want is not publicly available, there are ways to provide assurances to business investors that real profits can result from investment in this industry. While there is no such thing as a guarantee of business success (business ventures can fail for countless reasons), there are ways to demonstrate to investors that your project and undertaking are less risky than some others, and that you have as solid a grasp as you can on the actual revenue numbers for your business in the industry, than many other investors. Hunter Green has access to those figures and we have real world experience to be able to project with as much accuracy as possible, revenues and expenses for your business. Armed with those figures and analyses, we can give you the best shot at closing investor deals and obtaining the capital your business needs to go forward.
Land/Business Acquisitions and Investment Blog
As mergers and acquisitions are rapidly occurring in the Marijuana industry on daily basis, if you have a facility or operation and you are being courted by a larger conglomerate that is interested in either acquiring your business or is commencing talks about a merger and acquisition, there are some key points that you should keep in your outline for consideration and talking points during negotiations. In our experience, the tips outlined below are the most common considerations that clients must analyze in order to make a determination about whether the deal presented is truly worth materializing.
One of the most lucrative emerging sectors for investors and entrepreneurs right now is the marijuana industry. As more and more US states, including Michigan, legalise the drug for medicinal and recreational use, it’s becoming clear that the demand out there needs to be supplied. But how can you get on board and make some money? There are numerous ways to invest in the Michigan marijuana industry, and we’re going to discuss some of the best options today, so read on to find out more.
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