The Value of an Accurate Business Valuation

Determining the value of your business can help you make informed business decisions, identify areas for operations improvement, and enhance your negotiating position with investors, lenders and partners.

In an Emerging Industry, Valuations are Challenging

Determining the fair market value of a cannabis business is a challenging, in-depth exercise. The industry is relatively new and some traditional valuation methods may not be applicable. But with the right skills and knowledge, it is possible.

Prove Your Company’s Worth

Although many investors look for cannabis companies with an impressive valuation, total revenue is not the only criterion that should be considered. Ultimately, companies need valuations that reflect every aspect of their operations and highlight their efficacy in the industry. With over a decade of experience in cannabis business valuations, Northstar has the expertise to prove your company’s true worth.

Definition & Importance of Business Valuation

Business valuation is the process of determining the economic value of a company. It’s essential for transactions, strategic planning, compliance, and even litigation. A credible valuation aligns expectations between buyers, sellers, and investors.

Common Methods Used for Business Valuation

We apply proven methods such as Discounted Cash Flow (DCF), Market Multiples, and Asset-Based Approaches, selecting each based on your company’s financial profile and industry norms.

Expert Support:

We'll analyze the business value, outside influences, key staff and other internal and external factors that impact your company’s operations.
Even with a limited operating history, data from comparable companies allows us to determine your company's value.
In addition, we analyze marketplace trends that may influence your valuation.
We can help clarify internal risks that can affect your valuation, including regulatory and taxable burden challenges, poor financial data and ineffective internal controls.
We can provide independent valuations of your financial statements to provide insights into past, present and future cash flows.

Frequently Asked Questions

How do current interest rates and economic conditions impact my business valuation?

High interest rates and inflation can lower valuation multiples by increasing the cost of capital and reducing projected cash flows. Market volatility also affects buyer sentiment. Adjusting for these economic factors ensures your valuation reflects current conditions—not outdated assumptions.

What’s the difference between DCF and market multiple valuation methods?

DCF forecasts future cash flows and discounts them to present value, making it ideal for businesses with predictable financials. Market multiples compare your company to similar businesses that recently sold, reflecting real‑time market behavior and investor appetite.

How does the IRS ERC Withdrawal Program work?

The IRS offers a withdrawal option to avoid penalties if you believe your claim is incorrect. Proper documentation and repayment are necessary for acceptance.

The Value of an Accurate Business Valuation

In an Emerging Industry, Valuations are Challenging

Prove Your Company’s Worth

Definition & Importance of Business Valuation

Common Methods Used for Business Valuation

Expert Support:

Frequently Asked Questions

Company

Services

Contact Us

In an Emerging Industry, Valuations are Challenging

Prove Your Company’s Worth

Definition & Importance of Business Valuation

Common Methods Used for Business Valuation

Expert Support:

Frequently Asked Questions​

Company

Services

Contact Us

Frequently Asked Questions