Maryland, Ohio And Illinois Defy The Trend In M&A Activity: What Investors Can Learn
Despite an overall decline in mergers and acquisitions (M&A) across the cannabis industry, a few states are bucking the trend, showcasing growth and resilience. Recent data from Viridian Capital Advisors provides a comprehensive view of this dynamic sector, highlighting intriguing patterns for cannabis investors.
National Decline In M&A Transactions
The national landscape reveals a stark reduction in M&A activity. The U.S. as a whole experienced a 46.1% decrease in the number of transactions, dropping from 89 deals in June 2023 to 48 in June 2024. Similarly, the total value of these transactions plummeted by 66.8%, from $1.81 billion to $601.43 million.
Bright Spots In State-Level M&A Activity
While many states saw a downturn, Maryland, Ohio and Illinois reported significant year-over-year growth in M&A transactions. Maryland, in particular, saw a 33.3% increase in the number of transactions and a 58.9% rise in transaction value.
Ohio’s M&A activity doubled, with a 100% increase in the number of deals and an astonishing 1351.6% surge in transaction value, reflecting burgeoning investor interest.
Illinois, although maintaining the same number of transactions at two, experienced a notable increase in deal value from $39.00 million to $75.78 million, highlighting the state’s growing market potential.