We hate to even bring this up, because the vast majority of people in the marijuana industry great people who are in it for good reasons, but it has to be said: Whenever a new industry emerges, like it has with cannabis, the fly-by-night types come crawling out of the woodwork looking for a quick buck.
Ask your broker to produce a broker’s license. If they can’t, and they are not an attorney, they are in violation of Colorado law. Walk away.
Anybody who tells you that they can sell your company without producing a valid DORA-issued Colorado Real Estate Brokers License or who is not an attorney is not qualified. In Colorado, the person you entrust to sell you company MUST be a licensed real estate broker OR an attorney. If your company intends to convey a lease or to sell real property in the transaction, there are no exceptions. This has been tested and upheld by the Colorado Supreme Court–period, end of story.
You should also ask your broker what they know about the marijuana industry. Selling a business is not the same thing as selling real estate. Not by a long shot. You should retain someone who has an intimate understanding of the marijuana industry, not a general real estate broker who merely smells high sales numbers and decides to throw their line into the marijuana pond to see what they can catch.
Read has been in the cannabis industry since its emergence and John has been brokering businesses for nearly two decades. Anybody can figure a cap rate; not everybody can sell a marijuana company.