Buying an existing cannabis business is usually faster and less risky than applying for a new license from scratch. California hasn't made new retail licenses easy to get in most cities, so acquiring a licensed operation is often the only realistic way into a market you want. Here's how the process works in practice.
1. Decide what you're actually buying
Cannabis acquisitions come in a few flavors: a licensed and operating business (revenue from day one), a licensed but non-operating business (the license and lease are in place, but you build the team and operations), or a license with real estate attached. Operating businesses cost more but carry less execution risk. Non-operating licenses can be excellent value if you have operators ready to go — browse our delivery and storefront listings and you'll see both types.
2. Pick your license type and region
A storefront dispensary, a delivery service, a cultivation facility, a distribution hub and a manufacturing operation are very different businesses with different margins, staffing needs and regulatory burdens. Region matters just as much: local taxes, license caps and enforcement vary dramatically between, say, Los Angeles, the Bay Area and the Coachella Valley.
3. Understand what the license transfer really involves
You don't technically "buy a license" in California — you buy the business entity that holds the license, or the ownership changes are reported to the state and the city. Both the Department of Cannabis Control (DCC) and the local jurisdiction must approve ownership changes, and every city has its own process and timeline. This is where deals die when buyers go it alone. A broker who has closed transfers in that specific city will tell you upfront what the city allows, what it takes, and how long it really runs.
4. Do real due diligence
At minimum: verify the state license and local permit are active and in good standing, review METRC records against the books, confirm tax compliance (state excise, sales tax, and city cannabis tax), review the lease and any change-of-control clauses, and check for outstanding violations. If real estate is included, it gets a parallel diligence track. Our guide to cannabis business valuation covers how to sanity-check the asking price against revenue.
5. Structure the offer
Most deals are structured as entity purchases with payments tied to milestones — a deposit into escrow, a payment at local approval, and the balance at state approval. Seller financing is common in this industry and can bridge valuation gaps; see our article on seller financing for how those terms typically look.
6. Close and take over operations
Once the city and state sign off, ownership transfers, and you take the keys — along with the METRC accounts, staff, vendor relationships and compliance calendar. Plan the handover period in the purchase agreement; a 30–90 day transition with the seller available makes a real difference.
How Evergreen Broker helps
We maintain the largest selection of California cannabis businesses for sale — every listing shows asking price, rent, square footage and license details. We'll tell you honestly which listings fit your budget and experience, connect you with lenders and investors when needed, and manage the transfer process with the city and state. Talk to us about what you're looking for.