• The Challenges

  • The Challenges

Limited Buyer Universe
Due to regulatory caps in the Pennsylvania market, understanding the relevant buyers’ existing assets and regional focus allowed for efficient discussions

Conflicting Board Level Interests
Managing conflicting interests and ensuring the best outcome for all parties involved convincing non-cannabis focused stakeholders that bid levels were fair relative to specific cannabis market conditions

Initial Bid Retrade
The initial bidder attempted to negatively adjust purchase price, but our banking team successfully pivoted quickly to other interested parties

  • The Solutions

  • The Solutions

Create Differentiated Demand
Given limited buyer universe and depth of available retail in Pennsylvania, focusing on the strength of the stores relative to competition and attractive MSA demographics piqued buyer interest

Structured Auction Process
Managed a firm process and bid deadline, resulting in initial bids 25% higher than seller expectations and pre-existing offers

Nimble Adjustments
As initial bidder backed out of process, we were able to structure a narrow follow-up auction that drove the successful bid to a similary attractive value

The Results

Cresco’s acquisition of three retail in Pennsylvania was a logical fit as they sought to complete their Pennsylvania retail portfolio

▪ Structuring Preparedness – Deal team members educated the shareholders of Cure Pennsylvania related to the quality of stock consideration relative to bid values and drove buyers’ willingness to submit significant cash consideration

▪ Value Maximization – Via creative EBITDA adjustments and analysis into short-term competitor discounting, the deal team was able to hold potential bidders’ positions and maximize enterprise value


M&A Advisory

PGP acted as M&A advisor to Cure Pennsylvania in consummating this transaction