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Sherrill Corbett and Jessica Morgan Explore Cannabis Business Transition Strategies for PBJ Podcast
Tonkon Torp attorneys Sherrill Corbett and Jessica Morgan were featured guests on the April 8 episode of the Portland Business Journal’s Thought Leadership Podcast. Their episode explored smart transition strategies for businesses in the cannabis industry.
Sherrill and Jessica shared ways that a business can prepare itself for inspection by a buyer or investor, red flags that both buyers and sellers should look for, how a company’s value is set, the timeline for a deal to close, and why the sale structure is important from a regulatory approval and tax perspective.
The attorneys also stressed the importance of nondisclosure agreements to protect highly competitive and sensitive information and keep it from being used against a seller in a competitive way should a deal not go through.
They closed out the episode with a look at the benefits of proactively assembling a team of internal stakeholders and professional service providers such as CPAs and attorneys to prepare for a quick response to an interested buyer or investor. Outside experts will know where to look for potential issues that could scuttle a deal or decrease its value, can help a company resolve those issues, and will protect a seller through the process.