Any company owner who tries to sell at a low point in the business cycle would be looked upon with suspicion, and accordingly, the firm would receive a poor valuation.
But strong earnings themselves aren’t necessarily a signal of a healthy company; it’s the quality of the earnings that really matters.
In this exclusive Investor Intelligence webcast, contributor John D. Wagner, managing director at Colorado-based 1stWest Mergers & Acquisitions, will provide tips for how to effectively assess the financials of cannabis companies while conducting your due diligence, including:
- What to ask to get a business owner to demonstrate quality and sustainability of earnings.
- How far to look back in an industry that doesn’t have much history.
- How to identify suspicious activity in the financial reports.