As the legalization of cannabis for medical and recreational use expands throughout the U.S., complex business issues in the cannabis industry also increase. Kroll understands the different sectors within the cannabis industry, the challenges that can arise for cannabis companies and potential opportunities for investors. We are ready to guide your organization with our variety of personalized services and expert advice.

Kroll has global consulting experience on matters involving physical security, cyber security, due diligence, regulatory compliance, anti-money laundering, investigations, transaction opinions and valuation as well as litigation support. Ensure your organization is physically protected with our security program development, security systems design and ongoing regulatory compliance. We can also help mitigate cyber security incidents by providing immediate response, cyber risk assessments, penetration testing and tabletop exercises.

Our valuation experts assess the fair market value of cannabis businesses for investors, private equity funds, hedge funds and other industry participants for many purposes including disputes, litigation, portfolio valuation, minority buy-outs and income tax. We have significant cannabis experience for fairness opinions and solvency opinions.

Kroll’s comprehensive services have you covered for all your security, due diligence and valuation needs.

Security

To ensure staff, customers and the community are safe, Kroll conducts staff trainings and develops and implements security programs that align with cannabis licensing and permitting strategies.

Our certified security consultants oversee and assist with security designs involving the development of new facilities, facility upgrades and implementation of security systems to prevent crime. Kroll can also assist with creating “good neighbor programs” to align clients and customers with the community in which they are cited.

In addition to physical security, our cyber security professionals provide immediate assistance with cyber breaches and ongoing support through cyber risk assessments and penetration testing.

Our security services include:

Facility security designs for cultivation dispensaries and manufacturing locations
Design and implementation of facility security systems
Security program development and staff training
Compliance program development to ensure facilities meet regulatory standards
Master planning
Cyber risk assessments
Cyber penetration testing
Incident response and tabletop exercises
Damages assessments related to breach of exclusivity clause regarding a proposed cannabis acquisition

Due Diligence

Kroll partners with organizations to anticipate, detect and respond to a myriad of regulatory and reputational risks. With in-depth knowledge on the cannabis industry, global research capabilities and flexible technology, we help you feel confident in your decision making.

Manage third-party risks by leveraging our due diligence, governance and compliance technology, and respond to potential risks through Kroll’s investigative, remediation and look-back solutions.

Our due diligence and investigation services include:

Third-party due diligence
Screening and monitoring services
Public records and reputational reviews
Short-seller and activist shareholder reviews
Background checks
Forensic accounting investigations
Commercial litigation
Securing cannabis licensing

Valuation and Related Services

Kroll’s valuation experts specialize in conducting formal valuation and fair market value analyses of cannabis investment portfolios for private equity firms. We have extensive experience in preparing valuations, damage quantification and expert reports for various purposes, including breach of contact matters, shareholder and post-acquisition disputes and portfolio valuation and other financial reporting purposes. We are the industry leader in rendering transaction opinions.

Representative engagements:

Acted as expert witness for defendant accused of misrepresenting value of earnings
Advised board of directors of regional pharmaceutical enterprise in internal investigation of wrongdoing by cannabis division

Our valuation and related services include:

Valuations for many purposes ranging from disputes, to investments to financial reporting
Transaction opinions (fairness opinions, solvency opinions, formal valuations) including for transactions involving non-arm’s-length parties and business interests
Purchase price allocations and other valuations for financial reporting, such as Fair Value Range mark-to-market assessments
Expert opinions and expert testimony as well as third party neutral services

Talk to a Kroll Expert

Kroll is ready to help, 24/7. Use the links on this page to explore our services further or speak to a Kroll cannabis expert today via our contact page.