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.
5 Key Factors to Consider Before Making a Cannabis Acquisition
On-Demand Webinar: Preparing for the Evolving Dynamics of 2019 featuring Michael Harlow
6 Ways Cannabis Companies Can Maximize Their Sale Price
First Subcommittee Hearing on Banking Services for Cannabis-Related Industries
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).
InsightCannabis & Taxes: Maximizing Your Company's ValuationOn May 7, 2018 CohnReznick and New Frontier Data presented a webinar, “Cannabis & Taxes: Maximizing Your Company's Valuation”.
InsightBipartisan Legislation Seeks to Eliminate Some Business Concerns of Cannabis CompaniesIt was announced recently that Sens. Elizabeth Warren (D-Mass.) and Cory Gardner (R-Colo.) introduced a bipartisan bill that would allow states to regulate marijuana without federal interference.
InsightBeware! Are You in Compliance With Your Cash Payments?It is no secret that the Internal Revenue Service (IRS) is aggressively auditing Cannabis businesses.
InsightGrowth Strategy for the Green OceanCannabis operators who want to shape the future of legal consumption in the United States want to create innovative new products, reach broad new customer sets, and promote positive uses for cannabis to meet the $80 billion market opportunity the industry is chasing.