Business Exit Strategy
Exit Strategy Should Start at the Beginning
There are many reasons entrepreneurs decide to exit a business operation. No matter the reason, the exit strategy should be established well before the time comes to make the exit. Canna Advisors helps clients — during any phase of business — develop strategies to achieve prime valuation for a successful exit.
One of the first questions an investor should be asking cannabis startups today is, “What is your exit strategy?” We work with you to understand your preferred strategy. Whether your goal is to maintain ownership for continued growth and profitability, consolidate, merge, get acquired, or go public, having a roadmap to adapt to the changing industry is essential, and Canna Advisors has the knowledge and experience to help you take control of your future.
Futurecasting the Cannabis Industry
A significant factor to consider when mapping out your cannabis business exit strategy is how the cannabis industry will continue to grow and mature. Recognizing future opportunities and threats will prepare your business to adapt, evolve, and leave you in the best position to relinquish control when the time is right. Our expert cannabis consultants have been involved since cannabis industry inception, and have kept on the forefront of industry trends and forecasting. We work closely with you to advise on best practices to anticipate change and map out a plan to proactively work to meet those changes.
There are many considerations to factor in when planning for the future, such as what happens to startups once big businesses enter the industry and leverage their wealth and influence in the market. There is also the issue of legalization at the federal level and how that will impact cannabis startups when national legalization happens.
Questions you should be asking include:
What might happen when medical marijuana states implement adult-use programs?
What might happen when federal prohibition is lifted?
What might happen when big businesses go all-in on the cannabis industry?
Picking Your Path
If your vision is to expand and become a market leader, strong market positioning and branding are essential components of this process. Canna Advisors helps you develop a plan to own your niche, dominate your market, and drive prime valuation. Competing against big business or multi-state operations for market share requires a well-informed, well-capitalized, and well-calculated strategy. We work to give you the knowledge, tools, resources, and planning to shape your business into an industry influencer.
If your eventual goal is to get acquired by a larger cannabis company, consolidate, or merge with an existing one, you willl need a plan for your business to be as attractive as possible to potential buyers or partners. Rely on Canna Advisors for guidance on putting efficient and compliant processes and documents in place for maximum efficiency and profitability.
The industry is now at a tipping point where companies get established and make legitimate moves to become publicly traded. This exit strategy comes with high risk because of the current government classification of cannabis as a Schedule 1 drug. When cannabis is federally legalized, however, the sky will be the limit for companies looking to pursue this option. Planning early and often will ensure you are situated for an optimal assessment in the future.
Your Process Defines Your Profit
The structure of your cannabis business should align with the type of exit strategy you are considering.
Whether your end goal is growth, acquisition, consolidation, merger, or public offering, your setup and process defines your profit. We ensure clients build the infrastructure of their businesses for longevity. Canna Advisors helps you build an efficient enterprise that is highly profitable by developing a cost effective set up, systemized processes, SOPs, and well-trained staff. Building cannabis businesses right the first time leads to sustained success and enduring growth.
Early, thorough, and experienced planning is required for success in the market now, and even more so in the future. Envisioning your business path and strategizing now prepares your operation for optimum valuation and potential for successful exit.
We are ready to partner with you and make your prosperous future our focus. Whether you're looking to transition your cannabis business to experts in the field or just interested in streamlining your future exit process, we're experts in managing the entire cannabis business lifecycle.
Contact us today to learn more.