Investing in the Marijuana Industry
April 10, 2016
April 10, 2016
Canna Advisors Works with Cannabis Industry Investors All over the World
The marijuana industry is ripe for investment. The upside potential is huge and will continue to grow as more states get on board to legalize marijuana. “New Frontier Financials, a big data firm that focuses on the marijuana industry, estimates that the industry will reach $15.2 billion by 2020.” Now’s the time to get in on the ground floor.
In addition to being part of the cultivation, manufacturing and sale of cannabis and cannabis products, there are numerous types of ancillary businesses that include everything from supportive technology solutions and services, to equipment and packaging. As with any business investment, doing your research and understanding the relevant issues is critical. As more states legalize marijuana, the possibility of over-valuing companies will die down. In the meantime, arriving at a realistic evaluation of your investment requires experience and expertise.
In addition to evaluating that potential investment, Canna Advisors works closely with you providing timely advice, vetting potential partners and facilitating connections in areas where you may not have sufficient expertise. This type of analysis is still evolving and currently there are not a lot of proficient, 3rd party consultants available as a resource. Only 15% of those choosing to invest in the marijuana industry have the relevant background necessary to make a well-informed decision.
We can help you make a Sound Investment Decision
Through our associations with national organizations and as industry insiders, we can provide introductions to those who can share the insights and detailed information you need to invest wisely. It can be very challenging to invest in businesses that are not publicly traded and may not have any reliable financial statements for you to analyze. The background data that a prudent investor would require is just not available.
Some questions we can help you answer:
- How will you know if the cultivation facility is well-designed and well-run?
- Are the financial details of the business correct?
- Can you do an audit if there is no reliable financial data available?
- Are they operating with best practices within industry standards?
- Will you understand if the facility is running as efficiently as it could?
- Are they investing in the right areas to improve the yield?
- What quality control measures are required to prevent a re-call?
- How do you vet the individuals you plan to work with?
- Is the business fully compliant with the law?
- Are you aware of specific investor requirements of a given state?
You need current information and specific details about THIS industry to truly assess the quality of an investment opportunity in the marijuana industry. Some operations may not have the business background, knowledge and experience to be successful – but as an investor, would you know? The marijuana industry is so new there may not be a strong enough track record to really gauge the value of your potential investment.
There is huge potential investing in the marijuana industry and those who jump in early will be richly rewarded. Canna Advisors has the expertise and experience you need to make an astute business decision. For more information, please call us at 720.708.3154 or get in touch.