Dotan Melech (Courtesy photo)
Whether you’re seeking investment, planning to purchase a business or gauging your company’s worth, understanding how to determine fair market value (FMV) is a fundamental aspect of success.
When it comes to FMV in the cannabis industry, there are unique challenges stemming mostly from subjective valuations that require scrutiny and careful consideration.
Different types of subjective valuations occur when purchasing a business or when a bank or lender is lending money.
And when considering the value of distressed assets, business owners often scramble to get the highest valuation in a cloud of market uncertainty.
Some questions to answer regardless of the valuation’s objective:
What’s the value of owned equipment versus leased equipment? What impacts will state and local regulations have on the transfer of licenses to new owners? What is the value of an established brand with a strong distribution network? What do the liabilities of
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