The Cannabis industry offers significant growth opportunities to companies and investors committed to navigating a shifting business environment and to developing a sound strategy, efficient operations, and rigorous compliance processes.
Industry Insight Meets Growth MarketWhile cannabis as an industry is relatively new, CohnReznick’s years of experience supporting growth companies in industries with similar goals, business issues, and operating models help resourceful businesses from the real estate, life sciences, manufacturing and distribution, technology and retail sectors succeed in the cannabis sector. Our cannabis industry team, professionals that have helped thousands of owner-operated companies prosper, have focused their energies on helping clients adapt to the unique accounting, tax, and business challenges of the cannabis industry.
Resources Where You Need ThemAs a global firm, CohnReznick has the resources to help you stay ahead of changing national and state regulations, U.S. and international tax code changes, and complex audit disclosure issues. Our team has built strong relationships with the legal and finance communities supporting the industry. With U.S. and international offices, we have professionals located where you need them, to help you address the regulatory, financial, and operational challenges you face in expanding your cannabis business.
Technical excellenceWith cannabis clients ranging from vertically-integrated seed-to-sale operating companies to the investment funds and investors providing growth capital, CohnReznick’s cannabis industry team provides accounting, tax, and business advisory expertise focused on the unique issues of the cannabis industry, including limited access to banking services, auditing red flags, and Internal Revenue Code Section 280E. We provide business valuation services, nuanced for the nascent stage of the industry. Our due diligence services address operational, financial, tax and IT areas, and recognize the unique dynamic of competing state-to-state regulatory regimes and the challenges presented when financing and transacting industry assets.
A Long History of Social AdvocacyOver 30 years ago, we were on the cutting edge of innovative community development and the beginning of housing policy as an agent for social change. Now, we see the Cannabis movement evolving similarly. CohnReznick helps shape tax legislation to bring jobs, businesses and growth to distressed communities. But creating these opportunities is not just a goal for CohnReznick, it is a part of our mission statement’s. Through programs such as CohnReznick Cares and Pay-It-Forward, our partners and employees promote initiatives dedicated to Community, Advocacy, Responsibility, Education and Service (CARES). And because we take inspiration from Stephen Covey’s idea that “strength lies in differences, not in similarities,” we maintain a diverse, multi-dimensional firm culture so our diverse viewpoints can most benefit our clients.
Assurance ServicesCannabis companies face significant scrutiny by regulators, investors, and lenders. Needed is an audit leader with a reputation for instilling confidence in your financial reporting while helping you maintain transparency, reduce risk, and fine-tune compliance policies and procedures. CohnReznick’s attest and audit team provides objective assessments you can use to improve the overall performance while providing valuable information for financial statement users.
Tax Compliance and AdvisoryCohnReznick helps Cannabis company stakeholders navigate federal, state and local compliance challenges, strategize and plan for Internal Revenue Code Section 280E, and take full advantage of relevant tax incentives and credits, including those provided by IRC Section 199, and the IC-DISC export tax incentive.
Technology AdvisoryTechnology is at the center of the industry’s efforts to enhance regulatory transparency and operating efficiency. Our services include the design and implementation of: seed-to-sale programs, accounting systems, ERP systems, business analytics, customer relationship management, inventory management, and digital marketing solutions. CohnReznick helps cannabis companies leverage data to enhance productivity, create compelling customer experiences, and drive performance.
Entity Formation, Capital Sourcing, and Transaction SupportCohnReznick assists in determining proper entity structures and in accessing sources of equity capital including private equity funds and family offices. And if your growth plan calls for acquiring or divesting a business, our extensive due diligence services identify financial, IT, and tax risks.
Financial and Operations AdvisoryRegardless of whether you are developing/licensing, growing, packaging, distributing, or retailing cannabis products, we help finance and operating teams identify key performance indicators, manage working capital, implement business planning strategies, reduce the cost of transactional processes, and stay ahead of changing technical accounting requirements.
Financing Options for Cannabis Companies
The Challenge of Greening the Cannabis Industry Featuring Mark Hooley
On-Demand Webinar: Tax & Accounting Pitfalls For New Cannabis Market Entrants Featuring Michael Harlow
Press ReleaseFlowertown and CohnReznick Team Together to Provide Extensive Business and Marketing Services and Consumer Education to the Maturing Cannabis IndustryFlowertown, a rapidly growing cannabis media and marketing brand, and CohnReznick LLP, one of the largest accounting and consulting firms in the country, announced today that they will be teaming to deliver a comprehensive suite of services to the cannabis industry.
InsightHow Banking Challenges Impede the Growth of the Cannabis Industry TodayMaier N. RosenbergWith recreational cannabis now legal in Canada and many U.S. states, 2019 seems poised to become a turning point for the industry. However, within U.S. borders, one thing still limits growth: Cannabis companies’ lack of access to banking and financial services.
InsightThe SAFE Banking Act Would Be a Giant Leap for Legal CannabisMaier N. RosenbergThe Secure and Fair Enforcement (SAFE) Banking Act, which, in March, passed the U.S. House Committee on Financial Services by a significant bipartisan margin, represents a promising step forward for banks and cannabis companies that want to take sales out of the cash-based market and into the mainstream.
Insight5 Key Factors to Consider Before Making a Cannabis AcquisitionBeau Whitney & Andrew LinesWith talk of a looming recession, many analysts predict that during a downturn there will be a short list of growth industries that can deliver a healthy return on investment. Cannabis is near the top of that list. In fact, spending on legal cannabis in the U.S. is expected to increase from the current $12.9 billion to $20.4 billion in 2022, according to New Frontier Data.
Insight6 Ways Cannabis Companies Can Maximize Their Sale PriceBeau Whitney & Andrew LinesConsolidation is a natural phase of any industry lifecycle, and cannabis is no different. As legal cannabis continues its rapid growth, the market is beginning a new phase of consolidation.
InsightTax Incentives for Cannabis CompaniesThe recent passage of the 2018 Farm Bill descheduled industrial hemp and its derivatives.
InsightHow Final Tax Reforms Impact Your Cannabis BusinessSelvan Boominathan, JD, LLMThe Tax Cuts and Jobs Act has become the law of the land, and yet, still no relief for cannabis businesses from Section 280E. As we wrote in an earlier post, there are still significant tax reductions available to cannabis taxpayers, if you know where to look. This post will update each of the three areas we highlighted earlier to identify those opportunities.
InsightConsiderations for Cannabis Companies and Investors Following Tax Court Decision on Harborside Health CenterLate last year, the Tax Court published its opinion in Patients Mutual Assistance Collective Corp. (d.b.a. Harborside Health Center) v. Commissioner, 151 T.C. 11 (2018).