Cannabis Mergers & Acquisitions Higher After Record Capital Raises

<p>2021 has seen a record amount of capital raised by cannabis companies, with cash funding an acceleration of M&A activity. US companies have been the targets of 41 of the 56 closed transactions tracked in the first quarter of 2021.</p> <p>The US is expected to continue to be the dominant target for M&A activity given its far greater growth potential and profitability, however, Europe could see increased focus given its potential market size.</p> <p>Sectors like software and Infused products are experiencing their highest percentage of M&A activity in recent years.</p> <p>M&A activity in the Cultivation & Retail sector has expanded significantly from 2020, but the sector accounted for only 32% of transactions in Q1:21, the smallest percentage of any quarter since Viridian began tracking the industry. This is expected to normalize over the course of the year as MSOs increasingly use M&A to build out cultivation and retail capacity in newly opened markets.</p> <p>Biden's proposed corporate tax increases provided motivation to sell in a lower tax environment, thereby accelerating deals. An Ernst & Young's survey found 79% of respondents were likely to accelerate M&A strategies, alliances and joint ventures if tax rates increased.</p> <p>Show Notes:<br /> M&A Accelerates Following Record Capital Raising <br /> https://www.viridianca.com/chart2<br /> Biden-Harris Impact on M&A<br /> https://www.themiddlemarket.com/news/biden-harris-impact-on-m-a-transactions-now-jvs-later-finds-ey-survey-of-executives</p> <p>Host:<br /> Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.<br /> https://www.linkedin.com/in/joshkincaid/</p> <p>Episode 686 of The Talking Hedge:<br /> Your Cannabis Business Podcast.<br /> ​Covering cannabis products, reviews, business news, interviews, investments, events, and more.<br /> https://www.theTalkingHedgepodcast.com</p> <p>Music Info:<br /> Song: Beat | Keep On | 2020 <br /> Artist: Milochromatic Beats<br /> &<br /> Song: Dark Trap Beats Hard Rap Instrumental | Gang