| Ah, the thrilling rollercoaster ride of mergers and acquisitions activity in the cannabis industry … never a dull moment! Even with 2022 year-to-date M&A volume down a whopping 80% compared with 2021, according to the Viridian Deal Tracker, a close look at corporate transactions may suggest important themes about where the industry is headed this year. With fluctuating (and often plummeting) public and private valuations, the idea of a successful close is a moving target. This is key intel, mostly because a buyer’s close rate is a critical part of a seller’s due diligence—and yet that close rate is dependent heavily on what sellers bring to the table. When evaluating prospects for an exit ramp, can an acquirer get the job done a good 80% to 90% of the time? And, failing that, what can an unsuccessful close tell us about the industry? Take Ascend Wellness, which just this month called off an $88-million deal to buy MedMen’s New York holdings. As ever, the devil is in the details. For one, Ascend CEO Abner Kurtin cited “the state of MedMen’s assets” as one major reason to back away from this transaction. After 17 months of negotiations behind closed doors, it’s not totally clear what that means, but that’s not the only reason that Ascend halted the deal. As New York attorney Wei Hu points out in Associate Editor Tony Lange’s article, New York’s heavy emphasis on social equity funding and licensing has led to a lukewarm position from MSOs assessing the emerging marketplace. With the state chipping in $200 million for individuals with prior cannabis-related criminal offenses to make the first adult-use cannabis sales in New York, there’s little room to play for private equity funds and MSO acquisition teams. This dynamic—the crossroads of public and private funding for small cannabis businesses—is one part of the patchwork backdrop for M&A activity right now. New York will not be the only example of this. But don’t take my word for it: We’ve got a panel of experts ready to dive into the nitty-gritty of M&A in 2022 and beyond at Cannabis Conference. It’s happening next week! If you’re a prospective seller looking for a buyout—or a buyer honing a sense of what’s happening in the market this summer—this panel is the place to suss out strategic moves and smart communications. You don’t want to miss this one. -Eric Sandy, Digital Editor | 