Buying a cannabis business does not occur in a matter of days, and transactions fall apart for a variety of reasons, as we discussed in Part 1 of this blog series focused on the buy-side of a cannabis M&A transaction. In Part 2, we focused on the regulatory environment, discussing concepts that first-time buyers and their attorneys should be aware of. In Part 3, we looked into things to consider when hiring your cannabis attorney. Today, we have brokers in the crosshairs.
I don’t hate brokers, but I also don’t want to invite most of them to dinner. I expect brokers to pull their fair share of a transaction. Some brokers are really good at doing that, but others are only focused on two things: (1) connecting the buyer and seller and (2) closing as fast as possible so they can get paid.
(If you’re wondering whether Cannabis brokers are any different from other brokers, take a look at my blog post for our sister China Law Blog on international personal protective equipment (PPE) brokers.)
Cannabis business brokers that provide general brokerage services (connecting buyers and sellers) are common in the industry, but like most industries, broker competence and experience vary significantly. There