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If you buy a cannabis license rather than starting from scratch you significantly shorten the time required to get into business. In most cases, buying a cannabis license means also taking over the lease and buying the store’s assets, including inventory. Thrive Liquor & Cannabis Advisors has numerous connections in the BC retail cannabis industry, and as such, we often get information about cannabis stores for sale before they are widely advertised on the market.
How We Help You Buy a Cannabis Store
Acting as liaison between buyer and seller, we close 97% of our cannabis store sales because we match cannabis license buyers and sellers who have similar goals, values and motivations.
Our consultants look at:
- Asking price
- Terms and conditions of the sale
- Financial statements
- Store setup
- Employee experience and training needs
- Compliance and enforcement issues
While we aren’t accountants, we can identify red flags in financial statements that may indicate current or potential problems, help you determine the risk of buying the cannabis store, and can provide some leverage when discussing price.
Benefits of Buying a Cannabis Store
The main benefit of buying a cannabis license is the reduced start-up time. While the license will have to be transferred and the buyer(s) will have to provide corporate information and submit to criminal background checks, the time-consuming licensing requirements have already been met.
- You don’t need to apply for a cannabis store license. The license is transferred
- You won’t need to go through public consultation
- No need to find a space for lease
- The store is already set up and meets provincial and local government requirements
- Inventory is in place
- In most cases, existing staff are trained and know how to run the operation
- In most cases, a customer base has already been established
Downside of Buying a Cannabis Store
There are downsides to buying a cannabis store:
- Up-front buying costs are usually greater than the costs incurred to start from square one.
Start-ups that begin by applying for a cannabis license incur expenses at milestone dates instead of all at one time – as is the case when you buy a store
- If you don’t like the location, you’ll have to lease a new space and rebuild
- If you don’t like the store interior décor or layout, you’ll have to pay for a renovation
- If you aren’t happy with the current staff, you’ll have to hire and train new staff
Buying a cannabis store works well if:
- You don’t want to wait or don’t have the time or inclination to start from square one
- The price of the cannabis store is fair when evaluated against its financial statements
- The store has respectable sales earnings and isn’t operating with unmanageable debt
- Staff are trained and willing to stay on with new owners
- You can afford the immediate cash outlay for the purchase price
Interested in Buying a Cannabis License? Thrive Makes it Easier than You Think!
If you want to buy a cannabis store in BC, contact Thrive Liquor & Cannabis Advisors first. We can answer your questions and act as a “broker” between cannabis store buyers and sellers.