Sell your cannabis License

Inquire about
selling your Cannabis License

Are you looking to sell your cannabis business or learn more about what your options are? Speak with your dedicated Argonaut Advisors.

We have partners and clients that are actively looking to acquire or strategically partner with cannabis license holders. If you have the right cannabis license, we can make sure that you sell it at the optimal price.

Fill out this form to get started. We are interested to hear from you regardless of your cannabis license type.

One of our experts will reach out to discuss your options.

Photo taken in California, United States

There is a marketplace for your marijuana license. Get the most out of it with Argonaut.

As the industry matures, there is a growing market for cannabis license holders interested in selling. With the right information and a properly executed sales and negotiation process, you can get a fair market valuation for your cannabis license or operating cannabis business.

Argonaut Advisors is a leader in the growing cannabis investing industry. In our three decades of experience, we have created value for both cannabis business operators and investors through our suite of services: investment sales (buying and selling of cannabis licenses), mergers and acquisitions, capital advisory, and cannabis real estate investments. Our cannabis consultants are the strategic middle-point between capital and operators.

As a boutique cannabis capital advisor and consultant, we consistently create opportunities for both investors and operators. With hands-on operating experience and financial expertise specific to cannabis investing, our clients have access to differentiation that leads to value creation for both sides of the transaction.

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Key Steps and Considerations
when selling your Cannabis License

1. Check your local
and state regulations

Does the city allow me to sell my cannabis license? Are there limitations or processes that must be followed before I can sell my license? If you can’t sell your license, are you eligible to enter into a Management Service Agreement?

2. Know why you are
selling the license

Reasons you might be selling your license (among others):

You want to focus on a specific vertical; examples include
- You have a cultivation and a retail space, and you want to focus only on cultivation
- You want to focus on only marijuana flower and exit the manufactured products space
You are exiting a state due to tax reasons
You are in need of liquidity (for new investments or any other reason) and need to sell some of your lower priority assets
You want to exit the cannabis industry

3. Know how much
are you expecting
to receive
for selling your license

How did you get to that number? Is your valuation “due-diligence-proof”? Did you look at the resale market?
Do you want $X million in cash and another $X in stock, because you are looking to be acquired by a large operator, a publicly listed entity, or a company with high liquidity?

4. What are you going to do
with the proceeds?

Work with a CPA to determine the tax liability when you make your cannabis license sale
Ensure that this influences the timing of your sale; e.g. if you expect your profits in 2021 to be significant, you may want to consider selling your cannabis license and other assets the following fiscal year due to the reduced tax liability
Are you going to put your proceeds in a regular account, a 1031 exchange, or are you investing in another asset? Have a plan about how you’re moving forward.

5. If you’re planning an exit,
work on the numbers
and legal structure
of your business

Improve the financial performance by cutting down costs
Ramp up or optimize production
Minimize waste and inefficiencies in your operation
Implement tax planning strategies ahead of time
For deals larger than $5M+, get audited financial statements by an independent CPA firm
If you are a multi-license holder, break every license into its own legal entity

6. Perform due diligence
on your buyers

Review their past deals, who they represent, why they want to invest in your license or business, and what their general strategy is in the cannabis industry. This will help determine how you conduct negotiations with them.