EY Canada expert Monica Chadha spoke about the qualities and evaluations that drive M&A activity in the cannabis space.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
At a critical point for the sector, Monica Chadha, national cannabis leader for EY Canada, spoke about the state of M&A in the Canadian cannabis landscape and about the framework needed for this activity.
Chadha shared with the Investing News Network her perspective on the factors that come into play whenever M&A enters the picture, and discussed the particularities involved in cannabis M&A.
“I think the flavor of the year, and maybe next year, will be consolidation, and I think companies that are not fortunate enough to raise or strategically deploy capital will likely see more closures,” Chadha said.
The Canadian cannabis marketplace has recently seen some critical acquisition deals, which may hint at the consolidation trend outlined by the expert.
As it stands, Canadian operators are increasingly interested in the possibilities associated with the US cannabis market. One way these firms may gain access to the market below the border is through M&A.
As the leader of the cannabis team at EY Canada, Chadha works with businesses on their strategy, including evaluating the key initial aspects of what would make sense in terms of a partnership.
“Really evaluating some of the softer aspects of cultural fit, strategic direction, market presence are some of the factors we’d consider in conjunction with obviously financial,” Chadha said.
Check out the video above to hear the full conversation with Chadha and her insights on cannabis M&A.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.