Has Cannabis Moratoriums Been A Negative Impact To Colorado?
With moratoriums and no licenses available up and down the front range, many are curious has growth in marijuana stores hit a brick wall? “Absolutely not”, says President of Business Brokers of Colorado Lawrence D.J. LiCausi. BBC is the premier selling and listing broker in cannabis since 2009, and has just topped over $40 million dollars of exclusive listings in cannabis businesses; from dispensaries to cultivation facilities to farms.
While it is true that the single store owners are disappearing over the last couple of years. The consolidation is due to larger operators growing through acquisition, snapping up the smaller single operators. The end user in marijuana has become more and more sophisticated and has become brand loyal. “We are seeing a tremendous shift from volume of product to loyalty of product, brand recognition, and quality” says LiCausi. This business models is nothing different than the old days, for example, McDonalds and Burger King. People want to shop at their favorite place because of the experience and expertise of the dispensary and the product they feature. Colorado has some of the best, if not the best, strains and growers in the business.
LiCausi says, “this is also evident in reflection to the current pricing of re-sales”. Last year buyers were able to access the market with investments of about $1 million dollars; today that number has more than doubled. We are currently in a new shift in the marketplace whereas the investor, private equity, and global buyers are coming to Colorado because we are so far ahead of the industry in terms of regulation, compliance, and experience.
Our current clients and buyers are seeking larger footprints that pertain to acquisitions of more than one location, meaning they are seeking “rollups”. So, Business Brokers of Colorado poised themselves perfectly for partnering and packaging several dispensaries in order to provide rollup opportunities for their buyers. The LiCausi TEAM have compiled many opportunities and combinations to conduct rollups from 2 dispensaries to well over 10, ranging from $5 million dollars to well over $20 Million. We began our company with the mindset of being the best and not the biggest. We continue to stay ahead of the competition by adapting to the conditions of the market. We are not a brokerage that takes every listing like a franchise model. Business Brokers of Colorado is a boutique firm with heavy concentration on service, knowledge, and experience.