Wed.Oct 06, 2021

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Cannabis Business Valuation: Growing Importance as Market Expands

Appraisal Rights

Cannabis valuation issues will continue to grow in importance as the macro industry grows and as market participants continue to engage in transactions that refine the inputs for any valuation analysis. This piece by Bloomberg BNA [sub] highlights the 34 states that have now legalized cannabis for medicinal use (along with the 19 states allowing recreational usage); the projections put US market growth at 21% annually, reaching $41.5 billion by 2025, with the worldwide legal market for cannabis

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What is state tax apportionment and how do you calculate it?

ThomsonReuters

State income tax is a direct tax on business income you’ve earned in a state. It sounds straightforward, but this is a complex topic: States have various ways of calculating how much of your corporation’s business income is attributable to its presence and activity there. Each state gets to decide what matters most — your payroll, property, or sales — and in what ratio to account for them.