Following up on a recent article about selling licenses in Nevada, Canna Law Group attorney Robert McVay discusses a pickup in activity in Washington. His observations about the market apply to other markets as well.
Right now, about half of the marijuana business acquisition deals we see are originally put together by the buyer and seller in close contact. Word of mouth, Craigslist, and the fact that the business community is still pretty small mean that it’s not that difficult for buyers and sellers to connect with one another. The other half of the deals tend to be put together by brokers. Though many of the brokers that we have worked with are absolutely professional and are worth every penny they charge, we warn everyone to be cautious, as there can be many pitfalls. Brokers earn their fee when they actually connect a buyer and seller in a successful deal. They don’t earn their fee when you sign an exclusivity agreement with them, and they demand money for a deal that you put together yourself because the broker wasn’t doing his/her job. But their contract with you may say otherwise, so be warned.
McVay walks through all the steps buyers and sellers should take when pursuing a transaction. He warns that many sellers misrepresent themselves.
Read Robert McVay’s “Marijuana Business Acquisitions”: http://www.cannalawblog.com/marijuana-business-acquisitions/
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