FAQs
Our FAQ section provides clear, straightforward answers to the most common questions about selling a cannabis dispensary in Canada. Whether you’re exploring an exit strategy, preparing your business for market, or simply looking to understand the process, these insights will help guide your next steps with confidence.
Frequently Asked Questions (FAQ)
How do I know if it’s the right time to sell my cannabis dispensary?
Timing is an essential factor when planning your exit. Consider current market conditions, competition in your region, financial performance, and the stability of your operations. Sellers often achieve the best results when revenue is consistent, compliance is strong, and the market is active. Speaking with an experienced cannabis business broker can help determine whether now is the optimal time to sell.
What documents do I need to prepare before selling my dispensary?
Buyers expect clear and organized documentation. Key items include:
Financial statements (P&L, balance sheet, T12)
POS sales reports
Corporate records and shareholder agreements
Licensing and RAC information
Tax filings
Lease agreements or property ownership documents
Having these ready ensures transparency and accelerates due diligence.
How do I determine the value of my dispensary?
Valuation depends on several factors, including annual revenue, EBITDA/SDE, profitability, customer base, license type, market saturation, and location. Engaging a broker or valuation expert familiar with cannabis retail provides the most accurate and market-driven assessment. Many owners begin with a free valuation to understand their current position.
Do I need a broker to sell my dispensary?
While not mandatory, working with a brokerage significantly increases your chances of achieving a higher sale price and avoiding costly mistakes. A broker will assist with valuation, marketing, buyer screening, negotiations, confidentiality, and navigating regulatory requirements—making the process far more efficient and secure.
How long does it take to sell a cannabis dispensary in Canada?
The timeline varies depending on market demand, pricing, documentation, and buyer financing. On average, sales may take 3 to 12+ months. Preparing strong financials and partnering with a professional brokerage often accelerates the process.
How can I protect sensitive information during the sale?
Confidentiality is crucial. Potential buyers are required to sign a Non-Disclosure Agreement (NDA) before receiving financials, operational details, or store information. Brokers also use confidential listing methods to protect your identity until a buyer is fully vetted.
What taxes are involved when selling my dispensary?
Tax obligations depend on whether you’re structuring the transaction as an asset sale or share sale, along with your personal tax situation. Capital gains, HST considerations, and other factors may apply.
What is Your Dispensary Worth?
A successful exit begins with a clear understanding of your business’s true market value. We provide accurate, data-driven assessments to help you make informed decisions.
Comprehensive Business Valuation
We analyze the key factors that determine your dispensary’s value, including profitability (EBITDA), revenue streams, licenses, location, market conditions, and brand equity. You’ll receive a clear picture of what your business is worth and the data to back it up.