Expansion and Location Economics
Before signing a lease or pursuing a local permit, the analysis should answer three questions: what the fully loaded cost of entry is including permitting and build-out, what the location earns after GRT and local obligations at realistic volumes, and what it does to consolidated cash during ramp.
We build the pro forma from comparable operating data rather than optimistic assumptions and stress it against the downside case, because the second location is where undercapitalized operators most often fail — a risk that's especially real in border markets like Sunland Park where demand depends heavily on out-of-state traffic.
- Local tax, permitting and build-out cost modeling by jurisdiction
- Ramp-period cash requirement and break-even analysis
- Consolidated impact on covenants, tax and working capital
- Vertical integration analysis by function, not by ideology
Transactions, Diligence and Valuation Support
Cannabis transactions turn on license transferability, inventory accuracy, tax exposure and the quality of historical records. Buyers discount aggressively for uncertainty, and sellers with clean books capture materially better terms.
We support both sides: sell-side preparation and normalization, buy-side financial diligence focused on inventory and 280E exposure, purchase price allocation, and post-closing integration of accounting systems.
Internal Controls for Cash-Intensive Operations
Loss prevention is a margin issue. We design the control environment: segregation of duties, approval thresholds, vault and till procedures, inventory count discipline, vendor onboarding and system access review.
Controls also matter externally. An operator with documented controls is a stronger candidate for banking, insurance, lending and acquisition.
Systems Selection and Implementation
The right stack depends on scale and complexity: a single retail location has different needs than a vertically integrated operator running cultivation, manufacturing, distribution and multiple stores. We evaluate accounting platforms, POS, BioTrack integration, inventory and manufacturing modules, and AP and expense workflow.
We also implement, which means data migration, chart of accounts mapping, integration testing and staff training — not a recommendation memo handed over at the door.
Turnaround and Distress
When an operator is behind on taxes, stretched with vendors and short on cash, the sequence matters: stabilize cash, quantify total liabilities accurately, prioritize obligations by consequence, negotiate arrangements, and rebuild margin.
We work these situations with candor about what's recoverable. Some businesses can be repaired; some should be sold or wound down deliberately rather than eroded to zero.
