We are purchasing a Cannabis store, this project involves assessing the value of an established cannabis store by analyzing financials, market conditions, physical assets, legal compliance, brand value, and growth potential to inform purchase decisions and ensure the viability of the investment. We will only be granted access virtually to the financials so a model needs to be created with key financial indicators and question in advance of this meeting.

Collect Financial Records:

• Obtain necessary numbers from profit and loss statements, balance sheets, and cash flow statements from the past 3-5 years.

Market Research:

• Analyze local market trends, customer demographics, and competitive landscape.
• Evaluate the regulatory environment and its impact on operations and how this would impact us

Physical Asset Evaluation:

• We will provide this to the learner after the site visit

Legal Compliance Check:

• Review all relevant licenses and permits to ensure they are up to date.
• Assess compliance with local, provincial and federal cannabis laws.

Brand Valuation:

• Analyze brand recognition and customer loyalty.
• Evaluate marketing strategies and social media presence.

Financial Analysis:

• Use valuation methods such as discounted cash flow (DCF), comparable, and asset-based valuation.
• Project future cash flows and assess financial health.

Prepare Valuation Report:

• Compile data and analysis into a detailed report.
• Develop an executive summary highlighting key findings and valuation.

Presentation:

• Prepare a presentation outlining the valuation findings and investment opportunity.
• Address questions and provide additional data as needed.

Negotiation Preparation:

• Identify key leverage points from the valuation for use in purchase negotiations.
• Outline terms that favor our investment strategy based on the valuation.

These tasks are comprehensive and require a team effort, possibly involving financial analysts, market researchers and legal advisors. Each step is critical to ensuring a thorough understanding of the business’s value and potential.

Supporting learners effectively in completing a project to assess the value of a cannabis store involves providing them with access to necessary resources, tools, guidance, and data.

Staff Support

Mentorship:

• Assign experienced mentors from relevant fields such as finance to share industry insights.
• Schedule regular check-ins for progress updates and troubleshooting.

Continuous Assessment:

• Implement a structure for ongoing assessment through project milestones to provide learners with feedback on their progress.

By providing structured support we can enhance the learning experience and ensure that learners not only complete the project successfully but also gain practical skills and knowledge applicable in the real world.