CRM: Where is the market today with COVID-19 in place, compared to when it was first legalized in 2018?
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AM: In the first two quarters of 2018, evaluations were at their all-time high and the best time for sellers to sell. At that time, businesses were being sold between 3x - 3.5x gross sales. The market has dropped dramatically since then. However, the market is currently extremely active. Prior to March 15, 2020, Green Life Business Group had two deals in escrow, as of April 15, 2020, we have nine deals in escrow. Just over two years ago, Recreational Adult Cannabis Use was an illegal business and now it has made its way to the top of the business food chain. Now with California labeling Cannabis as an essential service business, you have restaurant owners, fitness gym owners, and many other small business owners who have now realized their current business is not recession proof and are now transitioning into the cannabis space. The industry innovators, CEO’s, and employees of Cannabis businesses, are not taking being an essential business lightly and are doing everything in their power to keep things running smoothly and most importantly safely.
CRM: Which Cannabis licenses do you see being the most in demand as of Q1 2020?
AM: Right now we receive close to 200 brand new inquiries a day and the license that is most in demand right now is Non-Storefront Retail, with Storefront Dispensary Retail following, and Turnkey Cultivation businesses coming in third. The current demand could be due to COVID-19, although we started seeing a spike in Delivery Only licenses starting to climb in Q4 2019. Retail Storefronts previously to February 2020 had always been the most in demand license, but they also carry a much higher ticket price. Just recently as of February 2020 we have a long list of delivery Non-Storefront Retail buyers that have taken over the #1 spot. Pre-Revenue Manufacturing and Distribution licenses are the least in demand licenses currently.
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