You can build from scratch, or you can buy your way to the top…
In business, one way to grow is to build something from scratch. You find a piece of land, start construction, fill your building with employees, and try to spread the word around about your new company like crazy.
That gives executives more control because they have controlled the process from start to finish and have established a company culture.
But there’s a problem.
Everything we mentioned above can take years or even decades to accomplish.
That’s why so many companies skip building and go straight to buying. When you buy a company, you get a finished building, licenses, a trained staff, and an established clientele.
And that’s exactly what happened with a recent acquisition Columbia Care Inc. (OTC: COLXF) made.
Thanks to a change in laws, Colorado is now open for business, and Colombia just paid $140 million for a vertically integrated company.
The Potential Value of Columbia Care
The company Columbia Care is acquiring is the Green Solution, which runs 21 dispensaries in Colorado.
Green Solution also has two more dispensaries in construction that are expected to open by the end of 2019. Green Solution has revenue around $73 million over the 12-month period that ended September 30, according to the Denver Post.
And this massively expands Columbia Care’s growing empire in one quick move…
It will now have 74 dispensaries either open or under development in 13 states, Puerto Rico, and Washington D.C.
This is an impressive deal for Columbia Care, but there is still a lot to unpack here.
For starters, the company has a very medical-focused branding strategy, which could be a good defensive play in down markets as more people are prescribed medical cannabis.
However, we have to wonder if it’s the best strategy to generate the most revenue.
We also are looking at how well the company can use the existing brand the Green Solution established in Colorado and expand it throughout the United States.
Big moves like this are one of the reasons we launched NICILytics. Not only do we provide in-depth analyst reports, but we rate every company in our database to let you know if it deserves your hard-earned money.
You can learn more about what we call “The Vault” right here.
Once you have access, make sure to check out our report on Columbia Care.
NICI Staff Reports
4 responses to “It Only Cost $140 Million for the Largest Vertical Operation in Colorado”
November 16 2019