Cannabis Valuations Plummet: West Coast Dispensaries See Major Drops
The cannabis industry, once characterized by sky-high valuations and rapid expansion, is now facing a harsh reality: dispensaries that were worth millions just a year ago are now struggling to find buyers at a fraction of that price. As Debra Borchardt noted in Green Market Report, according to Drew Mathews, CEO of Green Life Business, a leading cannabis business brokerage, the West Coast market has seen a dramatic decline in valuations, with some dispensaries losing up to 75% of their value.
“One store I’m selling would have sold for $2 million last year, but now it’s listed for only $500,000,” Mathews revealed. This stark drop in value is indicative of a broader trend affecting cannabis businesses across California and beyond. The shift in market dynamics has been so severe that even dispensaries generating significant revenue are not immune. Mathews recently facilitated the sale of a business that, despite pulling in $10 million annually, sold for less than $4 million.
A Shift In Valuation Metrics
The primary driver behind this decline …