By: ELI C. NEAL, CPA, ABV, CFF Welcome to 4 Corners’ Cannabis Valuations in Washington State introductory blog series! Throughout this eight-post series, we’ll be sharing information about the local cannabis industry and walking through the key concepts and challenges of a cannabis business valuation.  The legal cannabis industry is one of the fastest growing industries in the United States and the State of Washington, where recreational use has been legal since 2012. As of April 2021, 16 states and Washington, D.C. have legalized adult recreat ..read more

By: ELI C. NEAL, CPA, ABV, CFF Jonathan Bench is a leader of international business law and cannabis law. I joined him on Harris Bricken’s Global Law and Business Podcast to discuss: How IRS 280E impacts cannabis business valuations, especially retail marijuana shops. What factors are key in determining cannabis business value, whether you are using the income, market, or asset approach. What do you do when your business partners do not keep good financial records and how to recreate financial statements from receipts and bank statements (if there are any). How Eli developed clientele ..read more

By: ELI C. NEAL, CPA, ABV, CFF As a sponsor of Washington Defense Trial Lawyers (WDTL), I have the opportunity to give webinars throughout the year. I love helping attorneys understand financial statements and business valuations. The financial impact is, ultimately, a very important part of almost every dispute. In this first webinar, I talk about a business partner dispute. Often in partner disputes, one partner is dissatisfied with the performance or contribution of another. Or, they just don’t share the same vision for their company. If that’s the case, it’s common for one partner to buy o ..read more

Welcome to the fifth blog post in 4 Corners’ Cannabis Valuations in Washington State series! Throughout this eight-post series, we’ll be sharing information about the local cannabis industry and walking through the key concepts and challenges of a cannabis business valuation. Today's post discusses the Income Approach and discount rates.  This post covers cannabis-industry specifics in the context of the Income Approach for business valuations.   The Income Approach is premised upon the concept that the value of an asset is equal to the present value of expected future ..read more

By: ELI C. NEAL, CPA, ABV, CFF “What’s my business worth” is a question most business owners ask themselves. Peter Wilson, President of bizmktg.com, had me on his podcast: Biz & Life Done Well. We discuss why it’s important to get a business valuation, the various pitfalls of not having it done, and different approaches to valuing a business. Listen In Your Favorite Apps: Apple Podcasts | Stitcher | Overcast | Spotify | RSS Feed If you’re ready to understand what your business is worth, give 4 Corners a call at 425-998-7690 or schedule a video call here; we’ll listen to your situation ..read more

By: ELI C. NEAL, CPA, ABV, CFF What is your business worth? How do you know? How can you make a good decision to buy out a business partner, sell your business, or give it to your kids without knowing your business’s value? As a business owner, you don’t need a valuation every year. But, when you do need to get your business appraised, here’s what you can expect. Introduction call – You explain the purpose of the valuation, the ownership structure, and the operations of the business. Together, we’ll explore the type of work that will help you the most. Engagement letter – You execute the e ..read more

By: ELI C. NEAL, CPA, ABV, CFF CPAs offer a lot of value to clients early in divorce proceedings. CPAs identify what’s important, correct false notions, and, most importantly, inform good decision making. It was my pleasure to join Lisa Do and Walton Dabney on their Beresford Booth’s weekly webinar series. Each week for 30 minutes, the firm offers a webinar on business & real estate, litigation, estate planning, or family law. I highly recommend subscribing. In our presentation, Lisa, Walton, and I discussed the following topics: CPAs can and should help early in the divorce process. C ..read more

By: ELI C. NEAL, CPA, ABV, CFF We value minority ownership interests in privately held companies often; it’s one of the most common types of business valuations we perform. However, not every minority interest valuation is the same. It’s important for clients and their attorneys to understand the nuances. Different valuation purposes can lead to different values, even if the interest being appraised is exactly the same. The difference stems from the Standard of Value that’s used. For this blog post, we’ll focus on the difference between two Standards of Value: Fair Market Value and Fair Value ..read more

Welcome to the fourth blog post in 4 Corners’ Cannabis Valuations in Washington State series! Throughout this eight-post series, we’ll be sharing information about the local cannabis industry and walking through the key concepts and challenges of a cannabis business valuation. Today, we’re going over the Market Approach in the context of cannabis businesses.  The Market Approach is a methodology premised on the theory that a business can be valued with reference to transactions involving comparable companies in an open and unrestricted market. The challenge in valuing a business usin ..read more

By: ELI C. NEAL, CPA, ABV, CFF Harris Bricken’s Canna Law Blog is a fantastic, consistent source of news and information at the intersection of business, law, and cannabis in the Pacific Northwest and across the country. At the end of February, Jonathan Bench published a fantastic overview of the market for Washington cannabis companies. Based on what Jonathan has seen recently, the market has rebounded from a low point in 2020. The full article is Washington Cannabis: Buckle Up for a Brisk 2021 in M&A Activity. This type of insight from attorneys and brokers is important to the business v ..read more