Selling a cannabis business is not like selling a restaurant. The license transfer process, the compliance record, and a buyer pool full of tire-kickers make it a different game. Here's how to do it right — and what we do for sellers every day.
1. Get the valuation right
The most common starting point is one year of gross revenue for an operating business — our valuation guide walks through the method. But the multiple flexes with your market: a store in a license-capped city with clean books and a long lease can command more; a business with tax debt or a shaky lease, less. Non-operating licenses are valued on scarcity — what would it cost, in time and money, for a buyer to get this license any other way in this city?
Overpricing is the classic mistake. Overpriced cannabis listings sit, and sitting listings get stale and attract lowball offers. Price realistically and you'll be talking to serious buyers within weeks.
2. Prepare before you list
Buyers will ask for the same things every time, so have them ready: two years of P&Ls and tax returns, METRC reports that match the books, state and local licenses in good standing, the lease (and whether it's assignable), and a list of any violations and how they were resolved. Sellers who show up organized close faster and defend their price better. If there's a compliance issue, fix it or disclose it — surprises in diligence kill deals and trust simultaneously.
3. Market quietly, to real buyers
Most sellers don't want staff, vendors or competitors knowing the business is for sale. We market listings without naming the business — you'll notice our listings describe the license, city, financials and terms, not the brand — and we qualify buyers on proof of funds and experience before they learn identifying details.
4. Negotiate structure, not just price
A higher price with weak structure is often a worse deal. Things that matter as much as the number: how much is down versus carried (see seller financing), which milestones trigger payments, who bears the risk if the city drags its feet, and how long you're committed to a transition. We've watched sellers accept a slightly lower offer with 60% down and clean milestones over a higher offer with 10% down — and be very glad they did.
5. Survive the transfer
After the purchase agreement is signed, the real clock starts: local approval of the ownership change, then the state. Timelines vary from a few weeks to many months depending on the city. Expect to keep operating the business well during this window — the buyer is watching the numbers, and most agreements adjust if performance collapses before close.
What Evergreen Broker does for sellers
We've been on both sides of these transactions across every region of California. For sellers we handle valuation, discreet marketing to our buyer list, buyer qualification, deal structuring, and shepherding the transfer through the city and state. If you're thinking about an exit — even a year out — talk to us now; the preparation you do before listing is worth real money at the closing table.