During the due diligence process, we use our knowledge to identify potential red flags and risk factors risks for clients while looking for opportunities for maximizing ROI. We understand every cannabis investment deal is different. Every state has different regulatory requirements that can, not only complicate but sometimes even, stop a successful deal without having the right knowledge and guidance through the process That is where Argonaut Advisors steps in.
Our goal is to empower geographic expansion with precision to help clients successfully grow through mergers and acquisitions within the industry and other cannabis-related businesses.
Argonaut can conduct an in-depth analysis of the cannabis business’ regulatory compliance and structure.
We can provide an assessment of the current operational model and financial health and longevity of the business.
A detailed SWOT risk assessment can be conducted and presented to the operator or investor on the risks related to the market, the current staff and team, and the product offerings.
The strategy, stabilized operating capacity, and the potential exit of the asset is put under Argonaut scrutiny. We align investor or operator objectives with targeted optimum exit points that we chart well in advance of executing the exit strategy.
According to Seaport Global, the global cannabis industry is expected to grow to over $630 billion over the next couple of years, as more states and countries continue to take measures towards legalization. Considering the growing public pressure on the U.S. government, we don’t anticipate full legalization being too far away, allowing many new entrants, both institutional investors and retail investors, to jump into the market.
Today, despite the large investment interest, many corporations and capital firms remain somewhat hesitant due to the complex regulatory nature of the industry. The risks involved with entering the industry remain higher considering these complexities, yet there is an increasing number of new investors who continue to take this plunge. The opportunities are abundant, and while you might be eager to start pursuing cannabis investing or becoming a cannabis operator you need to do so with proper guidance. Only the right information will allow you to make the right decision given the constant and rapid industry changes. Argonaut will help you vet opportunities and support you throughout your potential investment journey in the cannabis market.
Argonaut will help in the initial stages of the acquisition We can target capital allocation into segments of the prospective acquisition business that will bring you the highest return. Our cannabis investment experts have been involved in many cannabis mergers and acquisitions over the years. We hope to guide you to make your experience in the cannabis market long-lasting and prosperous.
There are both risks and opportunities when operating or investing in the cannabis industry. Avoiding these risks and finding the right investment opportunities can create immense profitability for you and your businesses.
That said, the complex technical and legal environment that you find yourself in makes conducting proper due diligence extremely time-consuming and subject to errors. Proper due diligence requires extensive knowledge of the cannabis industry as a whole and potentially more important, the knowledge of a business’ typical risk factors, regulatory infrastructures, and an understanding of the maximum profitability potential of an asset. Operating or investing in new opportunities must always be based on accurate information provided to you from a reliable source of authority and knowledge leader in the industry. Argonaut provides you with this comfort through great experience and insight. We are experts in determining the viability of cannabis business opportunities, the potential market effect on these opportunities in the short and long-term, and the often-overlooked pitfalls that must be avoided. We will guide you throughout this process – this is our wheelhouse. We will always strive to get our clients the best deal.