Established Cannabis Cultivation Facility | $2M EBITDA | Full License
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State-of-the-Art Facility | Experienced Team | Owner Not Required
ESTABLISHED COMMERCIAL-GRADE CANNABIS CULTIVATION
This is an opportunity to acquire an established cultivation facility. The business has proven it can generate strong cash flow in one of the toughest cannabis markets in the country. The company operates from a modern commercial-grade cultivation facility with an experienced management team already in place.
Building a new cultivation facility in California would require significant capital, years of development, regulatory approvals and successful licensing. This opportunity allows a buyer to acquire an established operation with immediate cash flow and an experienced team already in place.
STATE-OF-THE-ART FACILITY
The facility was developed with an estimated $10 million - $15 million invested in construction and build costs. The infrastructure was designed for commercial production. Management believes building a comparable facility today would require substantially more capital and years of development.
- Modern: Commercial-grade cultivation infrastructure
- Build-Costs: Estimated $10 million - $15 million invested in build costs
- Fully Licensed: Fully licensed cultivation facility
- Replacement Costs: Estimated $15 million - $20 million to replicate today, with inflation
STRONG CASH FLOW GENERATION
California has been one of the hardest cannabis markets in the country. Prices have fallen sharply over the last several years. Many operators have downsized or exited the industry. This business continued to produce consistent EBITDA through disciplined cultivation and efficient operations. The results speak for themselves.
- EBITDA: Approximately ~$2 million average over three years
- Resilient: Profitable despite 50%+ market price declines
- Efficient: Strong operational discipline
- Proven: Years of successful production
EXPERIENCED OPERATIONAL TEAM
A strong management team oversees the day-to-day operation. The owner is not responsible for daily activities. Key employees are expected to remain after closing which provides continuity for the new owner.
- Management: Experienced leadership team in-place
- Independent: Limited owner involvement
- Retention: Key employees expected to remain
- Transition & Support: Seller will assist with the transition
REGULATORY OUTLOOK
Federal cannabis reform continues to move forward. The proposed rescheduling of cannabis from Schedule I to Schedule III represents one of the most significant regulatory changes the industry has seen. While the process remains underway these changes could reduce federal tax burdens, improve access to banking and capital, encourage additional institutional investment and continue the maturation of the relatively new cannabis industry.
- Rescheduling: Schedule I to Schedule III under federal review
- Taxes: Potential reduction in federal tax burden
- Banking: Potential improvement in access to banking and loans
- Industry: Long-term regulatory tailwinds for new owner
This is an opportunity to acquire an established cultivation facility. The business has proven it can generate strong cash flow in one of the toughest cannabis markets in the country. The company operates from a modern commercial-grade cultivation facility with an experienced management team already in place.
Building a new cultivation facility in California would require significant capital, years of development, regulatory approvals and successful licensing. This opportunity allows a buyer to acquire an established operation with immediate cash flow and an experienced team already in place.
STATE-OF-THE-ART FACILITY
The facility was developed with an estimated $10 million - $15 million invested in construction and build costs. The infrastructure was designed for commercial production. Management believes building a comparable facility today would require substantially more capital and years of development.
- Modern: Commercial-grade cultivation infrastructure
- Build-Costs: Estimated $10 million - $15 million invested in build costs
- Fully Licensed: Fully licensed cultivation facility
- Replacement Costs: Estimated $15 million - $20 million to replicate today, with inflation
STRONG CASH FLOW GENERATION
California has been one of the hardest cannabis markets in the country. Prices have fallen sharply over the last several years. Many operators have downsized or exited the industry. This business continued to produce consistent EBITDA through disciplined cultivation and efficient operations. The results speak for themselves.
- EBITDA: Approximately ~$2 million average over three years
- Resilient: Profitable despite 50%+ market price declines
- Efficient: Strong operational discipline
- Proven: Years of successful production
EXPERIENCED OPERATIONAL TEAM
A strong management team oversees the day-to-day operation. The owner is not responsible for daily activities. Key employees are expected to remain after closing which provides continuity for the new owner.
- Management: Experienced leadership team in-place
- Independent: Limited owner involvement
- Retention: Key employees expected to remain
- Transition & Support: Seller will assist with the transition
REGULATORY OUTLOOK
Federal cannabis reform continues to move forward. The proposed rescheduling of cannabis from Schedule I to Schedule III represents one of the most significant regulatory changes the industry has seen. While the process remains underway these changes could reduce federal tax burdens, improve access to banking and capital, encourage additional institutional investment and continue the maturation of the relatively new cannabis industry.
- Rescheduling: Schedule I to Schedule III under federal review
- Taxes: Potential reduction in federal tax burden
- Banking: Potential improvement in access to banking and loans
- Industry: Long-term regulatory tailwinds for new owner
About the Business
- Years in Operation
- 9
- Facilities & Assets
- The business operates out of a state-of-the-art cultivation facility. The seller estimates that $10 million - $15 million is invested in build costs for construction, infrastructure, equipment and cultivation systems
Based on increases in commercial construction costs and materials due to inflation, estimates put replacement costs well into the $15 million - $20 million range for a new build of this nature. Not to mention the time for permitting and build.
The new buyer will acquire a modern facility with significant barriers to replacement. - Market Outlook / Competition
- California remains one of the most competitive cannabis cultivation markets in the country. Over the past several years, wholesale flower pricing has declined by more than 50% placing significant pressure on cultivators across the state.
While many competing operators have downsized, ceased operations or sold off for licenses/ parts - this Company has gone the opposite direction. Generating cash flow in a challenging environment.
With disciplined operations and a relentless focus on efficiency it has continued to generate healthy EBITDA margins despite one of the industry's most challenging pricing environments. - Opportunities for Growth
- Management believes the cannabis industry is entering a transformational period of regulatory reform.
The federal government has directed agencies to expedite the rescheduling of marijuana from Schedule I to Schedule III recognizing its accepted medical use and advancing the formal rulemaking process.
While implementation remains ongoing management believes this transition could become one of the most significant regulatory developments in the industry's history. Over time these changes could reduce tax burdens, improve access to traditional banking and capital markets, expand medical research, and further legitimize the regulated cannabis industry.
As an established licensed cultivation business the Company is well positioned to benefit as these reforms continue to advance.
Real Estate
- Owned or Leased
- Leased
About the Sale
- Seller Motivation
- Owner relocating and seeking a qualified successor
- Transition Support
- The seller will provide a standard transition period to support a successful ownership transfer. The business is led by an experienced cultivation team that is expected to remain post-close. Ownership assembled a high-performing operational group by consolidating talent from another cultivation facility. Today the business operates with limited day-to-day involvement from the owner and is well positioned for continued success under new ownership.
Listing Info
- ID
- 2532962
- Listing Views
Listing ID: 2532962 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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