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Melissa Schiller Business and finance Mergers and Acquisitions

As rapid market consolidation continues in the cannabis industry, it is imperative that potential sellers understand how a purchase price will be paid by a buyer in order to negotiate the terms of a deal. This includes understanding how stock is paid, as well as how a buyer might use a clawback or holdback, according to Sabas Carrillo, CEO of Adnant Consulting.

Publicly traded companies may pay for an acquisition in a mixture of cash or stock, or it could be an all-stock transaction, which, for the seller, is essentially like writing a check to invest in the buyer’s company, Carrillo says.

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