SECTOR REPORT


Defining a new chapter for growing cannabis market

Oaklins offers an insight into the changing merger and acquisition dynamics in the growing cannabis market. Our integrated cannabis specialist team provides deep industry knowledge and can identify and contact the right strategic and financial partners for any company within the cannabis industry and beyond.

“The global cannabis market is growing quickly and has all the ingredients to be a large and sustainable market in the long-run. However, excessive growth processes generally don't come without hurdles. We can see this in the cannabis market, where several companies and sub-segments are in the middle of a reality check.


In recent years euphoria in the sector resulted in increased M&A activity and extraordinary valuations. During the second half of 2019 a drasticchange occurred. With listed companies lagging behind on budgets, stock prices tumbled, which negatively impacted the number of fundraisings, acquisitions and valuations. When the dust settles, we expect a more educated M&A wave geared at, among other factors, clearer positioning in the value chain, obtaining intellectual property,

getting skills of traditional companies in-house and increasing profitability.”


Frank de Hek

Horticulture specialist

Amsterdam, the Netherlands