Selling a regular business is tough, selling a cannabis business is even tougher. Between legal and regulatory standards from local, state, and federal levels it’s important to provide the right advisory services to clients not only to navigate the process but get out the best deal possible for them. While there has been a great deal of interest in cannabis M&A few service providers have any significant level of experience. Inexperience is a serious hazard in this area.
M&A is already a complicated activity so when you layer on a confusing regulatory scheme the complexity level increases exponentially. Buyers and sellers must navigate the sometimes novel requirements of a city and state agencies when going through a transaction. The parties must also decide on whether they will be seeking tax-free treatment for the transaction. Buyers and sellers need to have frank discussions about the tax liabilities that the seller is transferring to the buyer.
Awareness and education are essential. The good news is that these issues and processes can be managed so that you can bring added value to your clients as they navigate this process.
Kresimir Peharda is a corporate and securities attorney. His clients benefit from his experience representing public companies and hands-on operational experience in three start-ups, two in healthcare, and one in real estate. He represents companies in all stages of development from start-ups to public reporting companies.
Kresimir has assisted his public clients in IPOs, spin-offs, going-private transactions, SEC compliance, corporate governance, corporate reorganizations, and complex financing transactions. He advises startups and middle-market companies on contracts, equity compensation, debt and equity financing, mergers and acquisitions, and shareholder matters. His clients have raised more than $1.5 Billion in capital through public and private securities offerings (including private placements and PIPEs), commercial bank loans, other asset-based lenders, private equity firms, strategic partners, and VCs.
He also structured, negotiated, and closed mergers and acquisitions with a market value in excess of $750 Million in domestic and international settings. Kresimir has assisted his clients in alliance, development, distribution, licensing, marketing, and sales agreements worth in excess of $800 Million. A majority of his practice is devoted to the cannabis and hemp industries.”