Home  >  Discussions  >  What Are The Prospects Of Cannabis Based Businesses And Industry In California?

What Are The Prospects Of Cannabis Based Businesses And Industry In California?

Share This Page    See All Discussions    See All Contributors    All New Discussions & Comments

Comments & Replies: 1     Views: 2602     Posted By: Jaime Ortega  

Jaime Ortega, a Cannabis Industry Consultant, Due Diligence Specialist and Advisor reviews the new Administration's view & California's new legislation that will affect both buyers and sellers in the California Cannabis industry. Read what factors will affect both buyers & sellers in this industry.

Topics: Buying A Business, Legal Issues, Legislative Issues     Tags: buying a business, legal issues, selling a business



Recently there have been reports about the new Administration's view on the cannabis industry. Specifically that it respects medical marijuana usage in States that allow it, but does not support recreational marijuana proliferation. This is a departure from the Obama Administration policy on respecting a State's right to choose how they regulate their own legal cannabis markets, even in recreational States. Many industry experts have stated that there isn't much that can be done by the Federal Government to unwind the current progress and momentum legalized cannabis supporters have enjoyed over the years, but it is worth noting the current climate in the industry for further examination. The United States currently has 28 States and the District of Columbia that have passed laws allowing for the cannabis industry. Eight of those States and the District of Columbia have passed recreational laws allowing for adult-use sale, production, and manufacturing of cannabis.

Just a few days ago, California Lawmakers introduced AB-1578, which sends a clear message in response to what is the perceived new Federal position regarding recreational cannabis legalization. In general, the Bill stops California law enforcement from communicating, assisting, or working with federal law enforcement on marijuana prohibition activities.

In addition, in a recent MarketWatch article published on February 11, 2017, the following was stated which sheds light on the current administration’s policy on the legal cannabis industry, as opposed to the newly appointed Attorney General’s view on the industry. "But in a Trump presidency, he’d [Sessions] be asked to forward the Trump agenda and not his own, and a spokesman for President Trump made it clear Sessions would be implementing the Trump agenda, which is promising for the marijuana industry."

As has been the case in this industry for some time, it seems that those entrepreneurs that see a future for the industry will benefit while those that are discouraged by challenges will not. There is a definite similarity to prohibition era alcohol and the cannabis industry. Who will be the first Anheuser-Busch of the legal cannabis industry remains to be seen. Many companies are currently jockeying for position in what will most likely be the next great American industry.

What are the prospects for the legal cannabis industry now that California has legalized recreational (adult-use) cannabis production, manufacturing, and sale?

It is said that California’s move to legalize recreational cannabis will result in a doubling of the size of the legal cannabis industry, nationwide. California is truly an interesting case study in that it was the first state to legal medical cannabis over twenty years ago, in 1996. However, in being the first state, there were obvious gaps not filled in perfecting the methods for production, distribution, and overall regulatory framework for how the industry were to exist with the State. Those gaps were later filled by States like Colorado, Arizona, Washington, Nevada, and several others that implemented detailed regulatory systems that implemented licensing for dispensaries and cultivation facilities within their States.

In 2016, California enacted the Medical Marijuana Regulations and Safety Act (MMRSA), later revised to be named the Medical Cannabis Regulations and Safety Act (MCRSA), which implemented a regulatory structure for dispensary and cultivation facility licensing. This law finally set forth a safe harbor for California cannabis entrepreneurs that allowed for zero criminal or civil repercussions for cannabis business operators that were operating within the confines of the law. In November of 2016, California voters passed the Adult Use Marijuana Act (AUMA) in California, which will work in concert with the MCRSA. According to the State, it is expected that both laws will be implemented by the State in early 2018 and the MCRSA is already in effect meaning cannabis operators are subject to and protected by those laws as long as they are abiding by them.


  Helpful Resources To Assist In Selling And Buying California Businesses

Elizabeth McGovern: Escrow Services - SF Bay Area

McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.

Chris Seaman, Business Broker - San Diego County Area

Founded in 1994, First Choice Business Brokers has accelerated to become one of the most successful Business Sales Organizations in the world. Our team of agents have gone through extensive training to become experts in the field of business brokerage. Call Chris at 858-578-4111 for more info.

Diane Boudreau-Tschetter: Escrow And Bulk Sale Services

California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

Bob Hughes: Business Broker, Palm Springs Area

Bob Hughes is a business broker & is President of Hughes Properties. Hughes has a wide variety of entrepreneurial experience with the personal ownership & sale of numerous businesses, and has sold over 200 small & mid-sized businesses in the Riverside County marketplace. Call Bob at 760-323-8311.

Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses

Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.

Peter Siegel, MBA - SBA Loans, Non SBA Financing Assistance

For over 25 years I have provided niche business purchase financial advisory and loan placement services with SBA and Non-SBA Loans, Retirement Plan Conversions, Private Investors, etc. Financing amounts available: $20K to $7MM. Call today to get pre-qualified or receive financing: 866-270-6278.

Michael Davidson, Business Broker - Southern California

Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.

Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services

Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 800-864-0420.


  Related Articles, Events, Blog Posts, Discussions, Videos, Interviews

Buying A Dental Practice: 6 Things You Need To Know About Dentist Practices

Buying a professional service business, like a dental practice, is one of the most profitable ventures you can enter as a dentist. In this blog, Peter Siegel, MBA discusses six things you need to know about buying a successful dental practice or office: finding a practice, financing, deal structure.

Are Home Health Care Businesses Good Investments? What About Future Growth?

A buyer contacted me about financing (the purchase of) a home healthcare business and asked me about the future of this industry - I take on this question in a BizBen Discussion. Reach Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy/ProSell Program Advisor at BizBen) at 866-270-6278.

Tips When Using Escrow Bulk Sale Services When Buying Or Selling A Business

The final part of the business for sale transaction is the escrow and bulk sale process by Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor) answers questions and describes the escrow and bulk sale process. Peter can be reached direct at 866-270-6278.

Absentee Run Small Businesses - Is That Really A Possibility For Buyers?

Is buying a absentee run small business really a possibility? Peter Siegel (BizBen ProBuy Director) gets asked this question a lot in his consulting sessions with business buyers. Read more about what other Advisors and Intermediaries feel about this topic on this popular BizBen Discussion!

Absentee Run Businesses - A Myth Or Reality When Buying A Small CA Business?

Some buyers search for an absentee business to own, wanting to collect profits generated by a successful enterprise without having to stand at the sales counter or cash register, without having to cook, operate equipment or talk to customers. Here's some insight about finding such a business.

I am Buying A Business: Should I Buy The Property As Well? A Good Decision?

There are advantages and disadvantages to owning commercial property. Here are a few questions to ask when it comes to deciding whether or not to buy the property along with the business. Peter Siegel, MBA with the BizBen ProSell Program reviews this issue with potential sellers and intermediaries.

What Factors Are Considered In Valuing A Small Business? Advisors Weigh In

Valuing a small business is not guess work. It's not what some other businesses of the same type may have or may not have been sold for, it's not even what a business owner "feels" they want or deserve. It is a formula based on many factors. Peter Siegel, MBA from BizBen & others discuss this topic.

How To Determine Whether The Buyer For Your Business For Sale Is Sincere

A problem owners encounter when offering a CA business for sale is that not all so-called business buyers are qualified to make the purchase. It's frustrating and costly to waste time showing non-qualified buyers the business. Here are ways to identify time wasters so the focus is on real buyers.

See All News, Tips And Events

Joel Miller Senior Care Specialist
Business Purchase Financing SBA Loans
Cannabis Consulting Due Diligence Service
Bob Hughes Business Broker Riverside County San Diego


Auto Related
Business Services
Children Related
Communication Related
Computer, Internet Related
Construction Related
Entertainment Related
Financial Services
Health, Beauty Related
Home Improvement Related
Maintenance Related
Manufacturing Related
Media, Publishing Related
Pet Related
Photography/Video Related
Real Estate Services
Restaurant, Food Related
Retail Related
Service Related
Sports Related
Transportation Related
Travel Related
Wholesale Related

Auto Body Shops
Auto Repair Shops
Bakeries
Bars, Sports Bars
Cafe Restaurants
Car Washes
Cleaning Services
Clothing, Apparel Stores
Coffee Shops
Convenience Stores
Deli Restaurants
Discount, Dollar Stores
Dry Cleaners
eCommerce Websites
Fast Food Restaurants
Florists, Flower Shops
Full Service Restaurants
Gas Stations
Gift Shops
Gyms, Fitness Facilities
Home Health Agencies
Hotels/Motels
Ice Cream Shops
Juice, Smoothie Shops
Laundromats
Liquor Stores
Markets, Marts
Nightclubs
Pizza Restaurants
Postal, Shipping Stores
Preschools, Day Care
Print Shops
Salons, Beauty Shops
Sandwich Shops
Smog Test Only Shops
Smoke Shops
Spas, Med Spas
Sushi Restaurants
Tire Shops
Towing Services
Vending Routes
Wireless, Cellular Shops
Yogurt Shops

Alameda
Alpine
Amador
Butte
Calaveras
Colusa
Contra Costa
Del Norte
El Dorado
Fresno
Glenn
Humboldt
Imperial
Inyo
Kern
Kings
Lake
Lassen
Los Angeles
Madera
Marin
Mariposa
Mendocino
Merced
Modoc
Mono
Monterey
Napa
Nevada
Orange
Placer
Plumas
Riverside
Sacramento
San Benito
San Bernardino
San Diego
San Francisco
San Joaquin
San Luis Obis
San Mateo
Santa Barbara
Santa Clara
Santa Cruz
Shasta
Sierra
Siskiyou
Solano
Sonoma
Stanislaus
Sutter
Tehama
Trinity
Tulare
Tuolumne
Ventura
Yolo
Yuba

0 to $99,999
$100,000 to $249,999
$250,000 to $499,999
$500,000 to $999,999
$1 million to $2 million
over $2 million




BizBen - Where California Deals Get Done! 888-212-4747
7172 Regional Street #364 · Dublin, CA. 94568
BizBen · Copyright © 1994 - 2017, All Rights Reserved

                       
Sign Up Today - For Our FREE BizBen Weekly Email Newsletter
Includes The Best Info On Buying, Selling, Valuing, Financing California Businesses:
Articles, Blog Posts, Podcasts, Videos/Vlogs, Discussions, Q&A, Workshops, Webinars,
Resources. Watch For An Email Confirmation After Signing Up Above. Thank you.


Please confirm your registration by clicking the link we've sent to .

If you can't see it, please check your junk mail folder.

If you have any problems registering, or need assistance with your new BizBen User Account please phone BizBen Customer Support at 888-212-4747.



First Name:*
Last Name:*
Email Address:*
Confirm Email:*
Create Password:*
Confirm Password:*
Phone:
(   
 


You Are A:
Individual
 
Intermediary
 

Email Address:
Password:
 
Search BizBen.com

500 New & Refreshed Detailed Postings Daily
Over 2500 Resources Available On BizBen
Since 1994. Where California Deals Get Done!
Are Home Health Care Businesses Good Investments? What About Future Grow...
Buying A Dental Practice: 6 Things You Need To Know About Dentist Practi...