CANNABIS INVESTING & DUE DILIGENCE
Before you invest into a cannabis venture, conducting proper due diligence is essential to determine whether the deal shows promise of positive returns, had mitigated risks, and fits with your portfolio.
Complex and constantly changing regulations put potential portfolio companies at risk every day,
ENSURE THAT THE DEALS YOU ARE VETTING ARE RESILIENT ENOUGH FOR THE LONG HAUL.
The cannabis industry is fraught with risks, but it is also filled with opportunities both for operators and ancillary service and product providers alike. Discovering and vetting these opportunities can generate vast profitability if due diligence on cannabis investing is done correctly. However, the complex legal environment of the industry makes assessing risk and accurately calculating returns uniquely challenging, requiring deep knowledge of the sector and its political and regulatory frameworks. Therefore, investing in cannabis often comes with the struggle of sourcing accurate data, conducting compliant business, and predicting the effects of emerging markets on existing ones. Following nearly 15 years advising legal cannabis businesses in the industry, Cannabis Portugal knows how to thoroughly vet businesses to determine future profitability and avoid common investment pitfalls.
TO PROVIDE THOROUGH DUE DILIGENCE SERVICES WE WILL CONDUCT A:
➤Business compliance and structure analysis
➤Detailed tax structure audit
➤Financial model review
➤Market, team, and product risk assessment
➤Exit strategy overview
WHETHER YOU ARE SEEKING ASSISTANCE WITH YOUR DUE DILIGENCE PROCESS OR YOU WANT GENERAL INVESTMENT GUIDANCE, CANNABIS PORTUGAL HAS THE RESOURCES AND INDUSTRY SAVVY TO ADVISE YOU.
With the potential to impact numerous sectors including textiles and pharma, the global cannabis and hemp industry is estimated to grow to as much as $630 billion (Seaport Global) at maturity from $12.2 billion in 2018 (Arcview). As legalization settles around the world and public support in the U.S. continues to grow, it is only a matter of time before prohibitive laws change, enabling large corporations to enter the market. For now, however, the vast majority of corporations and institutional capital remain on the sidelines waiting for the foundation of this industry to be built translating into a once in a lifetime opportunity for family offices, accredited investors, and qualified purchasers to make the cannabis plunge.
Many cannabis companies will indeed fail over the coming years as they work to navigate regulatory changes and new competition. Between 79 and 90% of start-ups fail (depending on your return success rate), which doesn't bode well for start-ups in such a highly regulated and legally complex industry as cannabis. But although the risks are great, the opportunities could be even greater. Our team of Cannabis Portugal cannabis advisors assists clients on the best practices needed to remain resilient in the face of change in this evolving industry and take advantage of pre-vetted opportunities. Our cannabis expertise combined with our financial investment team’s experience will help you navigate the due diligence process.
Cannabis Portugal builds compliant cannabis businesses from the ground up. We employ best practices and regulatory expertise to provide in-depth due diligence reports, operational audits on cannabis businesses, and suggested improvements. To fully leverage our hands-on industry knowledge, Cannabis Portugal's principals founded Multiverse Capital, a series of cannabis venture funds aimed at providing qualified investors unique access to deal flow, and strong portfolio companies the necessary capital to scale their operations. Our financial industry and cannabis experts are ready to provide the advisory services you need to review potential portfolio companies and make your dent in the industry.