Most parties interested in operating, selling, or buying a licensed cannabis cultivation facility rarely know entirely how well the asset performs compared to its potential, or what its true value is.
A lack of clarity can result in less efficient use of resources and increased crop waste; lower production; higher risks of equipment failure, pest and mold outbreaks, and non-compliance; higher borrowing rates; uncertain yield projections; and more.
But it doesn’t have to be this way.
What is CannaDiligence?
CannaDiligence is an unbiased service that delivers actionable intelligence to help parties understand the asset’s production profile, profit potential, and true market value.
After our 5-step process, they deliver a comprehensive analysis of the cultivation asset, including:
- Infrastructure & Capacity Review
- A deep dive into a facility’s current state and performance qualities
- COGS & Financial Health Evaluation
- An assessment of the asset’s ability to generate revenue equal to its current capacity
- Compliance & Risk Profile Assessment
- A complete report of vulnerabilities uncovered in the evaluation
- Resource Efficiency & Waste Audit
- A look at how efficiently the asset consumes resources
- Optimization & Upside Potential Report
- An assessment of recommended actions and their returns on investment
Cannadiligence customers are:
- Operators or sellers who need to improve their profitability, minimize downtime, strengthen their position to raise scarce capital, and identify areas of improvement
- Buyers who need to know more about the assets they’re contemplating purchasing
- Investment partners who need to evaluate distressed assets for partnership or rebranding opportunities
Service Benefits
Operators, sellers, buyers and their legal, finance and other M&A partners see a range of benefits from working with the CannaDiligence team.
Lower Risk in Operations or M&A
Their evaluation provides clarity about an asset’s state. For good operators, this means happier lenders, insurance providers, and better terms.
Higher Profitability
They identify systemic issues that hinder a facility’s ability to generate revenue. Better yet, we highlight the ROI of targeted improvements.
More Credibility
Verify the performance of your underlying physical assets and increase your visibility to lenders, Boards of Directors, and C-Suites.