Why Companies Should Consider Court-Ordered Receivership Listings for Future Acquisitions

In 2022, the California cannabis industry took a downturn that led to the closing of various cannabis businesses & operations across the state. License saturation, 280E, competition, and the price per pound, to name a few, are only some of the factors that contributed to this downturn in the market.

The Nation’s largest cannabis business brokerage Green Life Business was not only at the forefront of these events but was able to assist many of the operators that were looking to offload their businesses and licenses. Green Life Business stated that in the year 2022, cannabis business evaluations were shifting to a monthly basis rather than a quarterly basis like years prior, which is something that has never been witnessed before in the industry. Many distressed cannabis businesses with multimillion-dollar investments & build-outs were taken by force to be represented by the court-ordered receivership.

Since its infancy, Green Life Business has built relationships with many of the largest Multi-State Operators (MSOs) in the country and quickly became the go-to for Cannabis Business Receiverships. Businesses represented by a Court-Ordered Receivership have proven to be strategic and desired business acquisitions as these businesses and licenses have a Judge’s stamp of approval, relieving it from any prior Liens or Debts.

Seasoned operators and MSOs have now begun searching for opportunities such as Receivership listings due to the fact that licenses in the hands of the Receivership are the cleanest licenses the market has to offer. Receivership listings offer potential buyers an asset that offers a clean canvas in which these acquisitions can be made at a fraction of the original cost or market value.

Industry leader Green Life Business continues to represent the Receivership’s opportunities throughout California, in the market’s most demanded areas such as West Hollywood in Los Angeles County, Palm Springs in Riverside County, and the world-renowned cannabis mecca that is Humboldt County as well as Nevada and new states that come online.

Although 2022 was known as a bloodbath for many operators throughout the industry, 2023 has already begun showing positive signs in the direction of improvement. MSOs and large operators have increased the demand for business expansion and acquisitions. As we near legalization, it is important for large-scale operators to place hubs all throughout the United States in order to establish their brand, market presence and recognition as cannabis brands and business due to the fact that evaluations will skyrocket upon federal legalization.

 

2023 February 9th. Why Companies Should Consider Court-Ordered Receivership Listings for Future Acquisitions. Benzinga

Join The Discussion

Compare listings

Compare