1645 Mackinnon Avenue, Cardiff, CA 92007

California Due Diligence Attorneys

California Cannabis Due Diligence Lawyers

Cannabis Business Lawyers Serving All of California Including the Bay Area, Los Angeles and San Diego

The passage of the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) in 2017 was a watershed moment for the commercial cannabis industry in California. Recreational use—also known as adult use—of cannabis had been legalized a year earlier, but the industry was loosely regulated at the state level. Today, there is much more government oversight from local, regional, and statewide entities, and those who wish to own and operate a cannabis business must comply with all applicable regulations. At Green Wise Legal, P.C.,(GWL) we help business owners and entrepreneurs conduct due diligence reviews of their business plans, as well as possible real estate deals, business agreements, and much more.

What Is Due Diligence?

In the arena of business law, "due diligence" refers to an investigatory process conducted by a third party—such as a law firm—on behalf of a person or entity considering a business transaction. The purpose of due diligence is to identify and evaluate the possible benefits and risks of the proposed transaction. Due diligence is appropriate before buying an existing business, purchasing a parcel of real estate, or entering into a business agreement or contract. For cannabis business owners, due diligence is also important during the licensing application process.

Ownership and Buying a Cannabis Business

As the commercial cannabis industry in California grows, opportunities will arise for entrepreneurs to purchase existing cannabis businesses. Buying an existing business, however, can be tricky. At GWL, our attorneys will perform a due diligence review of your proposed purchase so that you will have a full understanding of:

  • The seller's motivations for selling;
  • Existing compliance concerns;
  • Possible ownership or shareholder objections;
  • Recent changes to local ordinances;
  • Any real property to be included in the transaction; and
  • Potential financial liabilities.

There is no such thing as too much information in a due diligence review. Our attorneys will ensure that you have the information you need to make an informed decision. Even if you are just looking to purchase real estate for a new cannabis business, our firm can help with due diligence for that transaction as well.

Due Diligence for Business Contracts

Cannabis businesses rely heavily on contracts and business agreements, including purchase and sale orders, licensing agreements, distribution contracts, and many others. Before you sign any contract, it is important to conduct a due diligence review of not only the agreement itself but the other involved party as well. You have the right to know who you are doing business with and how likely they are to comply with the terms of your agreement. Green Wise Legal, P.C. conducts due diligence on all types of cannabis business contracts so that any potential problems can be addressed in advance.

Schedule an Appointment Today

If you are considering a business deal within the California commercial cannabis industry, contact our office. Call 858-605-8743 for a free, confidential consultation with a member of our team today. We represent cannabis business owners and entrepreneurs in San Diego, Los Angeles, the San Francisco Bay area and throughout California.

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