What We Value at CannValuation.Com
Retail Facilities
The valuation of licensed retailers is based on valuation of the revenue from the store.
We maintain a database of licensed stores in British Columbia and will be tracking them using historical metrics from the marijuana world and well as similar property types.
Ask us how we can appraise your retail store.
Licensed Production Facilities
Many financial experts will tell you that they can value licensed medical and recreation marijuana facilities. But financial institutions, which typically have the lowest lending rates, need real estate loans completed under the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP), which requires competency based on experience. Bramwell & Associates has appraised facilities in BC and Ontario since 2015 with values over $1,250,000,000.
We track sales of licenses and have completed proposed facility financial modelling. For more information, see below. Call us today, and we'll analyze your needs.
Building Partnerships
Everyone has different needs. Call us today if we can work together or if you need a referral to a Consultant or Lawyer that is in the Cannabis industry.
Valuation of Marijuana Licensed Producers
For marijuana Licensed Producers (LP) or related operations, the return on investment has been more based on its exit value, rather than on its net profits. This is particularly true for minority shareholders not involved in the business’s day to day operations. Their goal is to build up the business as much as possible so as to maximize its sale value. Think of this as a private equity model of investing. With little real market data, valuing a marijuana business is somewhat speculative under this method.
Valuations are challenging in this industry as the marijuana marketplace is emerging and regulations are changing. It is important for the owner to be able to show that its marijuana business has been set up with the necessary infrastructure to allow for its future growth and to be able to show that it will not be bogged down with unnecessary costs. This includes being able to show that the business is complying with applicable federal, provincial and local laws for both this business, but also for farming operations.
Bramwell & Associates has been involved in the valuation of several potential as well as operating LPs. The importance that investors need to understand is that back of the envelope calculations based on asset-based valuation or based on an earnings-multiplier will not be sufficient in the future. With legalization, Schedule A and B lenders will start to enter the market. As operators start to go to traditional lenders, these lenders will want to see commonly accepted valuation methodologies used.
Valuing a marijuana operation is not only for real estate, but it needs to be valued as a business. If you are looking to know the market value of a cannabis business for financing or a sale, Bramwell & Associates can assist you by utilizing its experience in the appraisal of licensed grow operations.