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Cannabis Mergers & Acquisitions Higher After Record Capital Raises
Publisher |
Josh Kincaid
Media Type |
audio
Categories Via RSS |
Business
Business News
Investing
News
Publication Date |
Mar 31, 2021
Episode Duration |
00:05:12

2021 has seen a record amount of capital raised by cannabis companies, with cash funding an acceleration of M&A activity. US companies have been the targets of 41 of the 56 closed transactions tracked in the first quarter of 2021.

The US is expected to continue to be the dominant target for M&A activity given its far greater growth potential and profitability, however, Europe could see increased focus given its potential market size.

Sectors like software and Infused products are experiencing their highest percentage of M&A activity in recent years.

M&A activity in the Cultivation & Retail sector has expanded significantly from 2020, but the sector accounted for only 32% of transactions in Q1:21, the smallest percentage of any quarter since Viridian began tracking the industry. This is expected to normalize over the course of the year as MSOs increasingly use M&A to build out cultivation and retail capacity in newly opened markets.

Biden's proposed corporate tax increases provided motivation to sell in a lower tax environment, thereby accelerating deals. An Ernst & Young's survey found 79% of respondents were likely to accelerate M&A strategies, alliances and joint ventures if tax rates increased.

Show Notes: M&A Accelerates Following Record Capital Raising  https://www.viridianca.com/chart2 Biden-Harris Impact on M&A https://www.themiddlemarket.com/news/biden-harris-impact-on-m-a-transactions-now-jvs-later-finds-ey-survey-of-executives

Host: Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast. https://www.linkedin.com/in/joshkincaid/

Episode 686 of The Talking Hedge: Your Cannabis Business Podcast. ​Covering cannabis products, reviews, business news, interviews, investments, events, and more. https://www.theTalkingHedgepodcast.com

Music Info: Song: Beat | Keep On | 2020  Artist: Milochromatic Beats & Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018 Artist: LuxrayBeats

Keywords: Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks,  Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data

Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers.

2021 has seen a record amount of capital raised by cannabis companies, with cash funding an acceleration of M&A activity. US companies have been the targets of 41 of the 56 closed transactions tracked in the first quarter of 2021. The US is expected to continue to be the dominant target for M&A activity given its far greater growth potential and profitability, however, Europe could see increased focus given its potential market size.

2021 has seen a record amount of capital raised by cannabis companies, with cash funding an acceleration of M&A activity. US companies have been the targets of 41 of the 56 closed transactions tracked in the first quarter of 2021.

The US is expected to continue to be the dominant target for M&A activity given its far greater growth potential and profitability, however, Europe could see increased focus given its potential market size.

Sectors like software and Infused products are experiencing their highest percentage of M&A activity in recent years.

M&A activity in the Cultivation & Retail sector has expanded significantly from 2020, but the sector accounted for only 32% of transactions in Q1:21, the smallest percentage of any quarter since Viridian began tracking the industry. This is expected to normalize over the course of the year as MSOs increasingly use M&A to build out cultivation and retail capacity in newly opened markets.

Biden's proposed corporate tax increases provided motivation to sell in a lower tax environment, thereby accelerating deals. An Ernst & Young's survey found 79% of respondents were likely to accelerate M&A strategies, alliances and joint ventures if tax rates increased.

Show Notes: M&A Accelerates Following Record Capital Raising  https://www.viridianca.com/chart2 Biden-Harris Impact on M&A https://www.themiddlemarket.com/news/biden-harris-impact-on-m-a-transactions-now-jvs-later-finds-ey-survey-of-executives

Host: Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast. https://www.linkedin.com/in/joshkincaid/

Episode 686 of The Talking Hedge: Your Cannabis Business Podcast. ​Covering cannabis products, reviews, business news, interviews, investments, events, and more. https://www.theTalkingHedgepodcast.com

Music Info: Song: Beat | Keep On | 2020  Artist: Milochromatic Beats & Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018 Artist: LuxrayBeats

Keywords: Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks,  Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data

Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers.

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