Cannabis Valuations ‘More Mathematical, More Balance Sheet Driven’ Than Before: Insights From Industry Experts
“At the start, we weren’t really valuing companies at all. It was based on market potential,” Aaron Grey of Alliance Global Partners highlighted during a deep-dive session on the evolution of cannabis company valuations at the Benzinga Cannabis Capital Conference in Hollywood, Florida.
The panel discussion featured industry experts like Tahira Rehmatullah from Highlands Venture Partners, who shared insights on how the focus has moved from growth at all costs to operational efficiency and profitability.
“What we see now is a shift towards metrics that emphasize longevity in a company,” she explained, noting the industry’s move towards more financially sustainable practices.
Grey added: “Back in 2019, a lot of RTOs were occurring, and it was all about what states had exposure and potential for conversion to adult use. Now, we talk about balance sheets and cash …