This established business is a Cannabis Concentrates Manufacturer and Wholesaler producing and distributing the highest-quality concentrate products for the medical and recreational markets in Colorado. Despite the recent softness in the Medical segment the business continues to grow the bottom line. Trailing 12 month EBITDA is $824,833!
If you have become fatigued looking at Cannabis businesses promising a bright future but suffering from lackluster and overly optimistic leadership, ‘cloudy’ financials, lack of documentation, a roller-coaster of financial performance, and with simply too many question marks, this is the business to look at today. Both Med and Rec MIP licenses as well as cultivation licenses.
The family-owned business was the brainchild of 2 corporate senior managers who sought to bring their professionalism to an industry while in it’s infancy to create a sustainable and profitable business which would distinguish itself as a producer of the highest purity quality products supported by outstanding customer service. They have met or exceeded every benchmark over the last 3 years. Strong market penetration, a salesforce second to none, top notch extraction team, and the facility can easily expand capacity three-fold (now) without near-term CapEx.
Products are currently sold under 3 brand names and has received numerous product quality awards most recently in Q1 of 2022.
While the business realized significant year-on-year growth in 2021 it did so purposely while protecting its margins and not participating in the ‘race to the bottom’ which many in the industry segment have done by discounting prices to grow market share, which has resulted in the same businesses ceasing to exist. This is a very stable, predictable, and profitable business with a loyal and seasoned team in place and which is positioned for sustained future performance.
In addition to manufacturing its own proprietary products the company also processes raw materials into finished products for Dispensary customers seeking their own branded products.
The company has made significant capital investment in production facilities to expand capacity three-fold making this an extremely attractive acquisition for an existing or new company seeking to expand within the Colorado marketplace or to immediately gain an established market foothold. The company has steadily grown it’s revenues since it’s inception with year-on-year 2021 to 2020 revenue growth of 77%. In addition there remains significant growth opportunities supported by its existing production capacity which can support a three-fold increase in revenues. Location is close to Denver in a very Cannabis-friendly municipality with low tax rates. The production facility can be expanded as all power and utilities were installed with future expansion in mind on a property which has plenty of room for an expanded footprint.
The business has both Medical and Recreational MIP licenses as well as cultivation licenses which will provide a smooth path to vertical integration. In addition, the Seller will entertain up to 10% Seller Financing for a well-qualified Buyer. Motivated Seller ready for retirement.
Due to the nature of the industry and the lack of access to business acquisition capital by traditional lenders, Proof of Funds will be required by interested parties in conjunction with the completion of a Non-Disclosure Agreement.
Rocky Mountain Business Advisors is extremely selective in which businesses we bring to market for sale. We only represent business owner who have created a sustainable and growth-oriented business model supported by documented process and procedures, organizational structure, and accelerating profits. 303-474-5582 – email@example.com