Pre-ICO Turn-Key Recreational Marijuana Dispensary Business For Sale (LA County) #124
Popular Rec., Pre-ICO, Turn Key, Sold
Dispensary / Posted 6 months ago / 789 views
Pre-ICO Turn-Key Recreational Marijuana Dispensary For Sale (LA County) #124
This Dispensary is in Torrence, CA and is on pace to do close to $4M this year on the retail storefront side. This year the shop has grossed $1.75M and will probably finish around $3.8-$4M, once they close down the surrounding illegal shops the dispensary should easily do $5M minimum because that was what the shop was producing with those surrounding illegal shops.
The shops has the capability of doing retail and manufacturing. The current operator wants to bring in an established company and have them use the manufacturing license to do all the work and collect 50% of their profits. Which could easily generate the same revenues on his 50% as the retail store is doing.
This business with the storefront is doing $5M in 2019, (plus delivery) could bring in an additional $1m-$1.5M the first year along with $5M on the manufacturing side projections around $11.5M to $12M next year.
Evaluation of this business –
This is evaluation simply for Los Angeles because it is the Capitol of the World for Cannabis their licenses paper value is much higher than every other city.
Market Value for just all 10 Licenses (Retail Storefront, Retail Delivery, Cultivation, Manufacturing and Distribution and you have licenses for both Medical and Recreational is going between 5M to 5.5M for just paper.
2X Gross Revenue is Fair Market Value however a lot of sellers that we do not represent that try and sell their business on their own want closer to 3 to 3.5Xs Gross Revenue because it is the “Cannabis Gold Rush but 2X’s is very fair market Value which in my opinion is about 10% below market Value but those are the only listings we bring on we pass on everything else above that.
5 -5.5M Licenses with zero revenues + 2X Gross + (Real Estate Value) = Fair Market Value. (Inventory+ Fixtures+ the staff + the know training), how typically is included in the formula described above.
13M Business – 5M Paper + 4M Retail Sales+ 3M Real Estate = 12M just asking over 1.25 x’s Gross Revenue
Most Los Angeles businesses are trading at licenses (5M plus 2X’s Gross Revenue)
Total: 9,000 sq ft
- 3500 sq ft allocated for dispensary
- 5000 sq ft for manufacturing Warehouse.
- 500 sq ft of Office space
Option to buy with no real estate 10M , with a lease of $15,000 a month long term lease available.
14 employees , plus security team, 24 hour surveillance.
Ample parking over 20 spots
Owner has over 12 years of Business Experience, is willing to train
Asking Price: $13,000,000.00
Must sign an NDA/Waiver and have proof of financials before any other detailed information is released.
Kay Akel, BRE CA# 02061374
If you have any questions call Kay’s assistant at (619) 653-0483
Green Life Business Group Inc. we are here to both help you sell or buy a cannabis business opportunity.
Marijuana brokers, Marijuana broker, Cannabis real estate brokerage, Cannabis Dispensary broker.
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