The breakneck pace of completed mergers and acquisitions in the marijuana business might be coming to an finish.
Deal activity was down drastically in September versus a year ago – only 16 this year compared with 29 in 2018.
The quantity of bargains in the 1st nine months of 2019, nonetheless, was nonetheless ahead of 2018 – 278 versus 242.
Cultivation and retail remained the prime mover behind M&A activity in September.
This month-to-month series from Marijuana Business enterprise Everyday and Viridian Capital Advisors offers the most current information on cannabis investment activity and M&A, along with essential takeaways, evaluation and trends primarily based on current industry moves.
The information under is by way of the week ended Oct. four.
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Total volume of raises slows in September
Even though the quantity of raises in September 2019 was up more than the exact same month in 2018 – 53 capital raises versus 43 – the total quantity raised was basically down.
In September 2018, the typical raise was $14.7 million for an all round total of $630.four million. This year, September’s typical was $11.three million for an all round figure of $599.1 million.
That is a distinct profile from the earlier month, when the typical size of every raise was almost triple the earlier year’s quantity, resulting in an all round total of $972.eight million raised versus $369.three million in August 2018.
Cultivation and retail dominates even in slower M&A infused solutions sturdy
As noted, cultivation and retail continued to be the driving force behind completed M&A bargains this previous month even as the all round volume slowed.
Precisely half the closed bargains in September involved purchasers in that sector.
This is broadly in line with the trend for the 1st nine months of 2019, when 131 purchasers in cultivation and retail have been accountable for a total of 278 closed bargains.
The infused solutions and extracts segment accounted for 5 of the 16 completed M&A bargains in September 2019.
Viridian Capital Advisors is a economic and strategic advisory firm that offers investment banking, M&A, corporate improvement and investor relations solutions to emerging development firms and certified investors in the cannabis sector.