OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
Mergers & Acquisitions
Mergers & Acquisitions Summary
Each week, Viridian publishes insights and analysis on completed M&A transactions in the prior week. Our analysis includes:
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- M&A Market Commentary
- Public and Private Companies
- Buyers & Sellers
- YTD M&A Analysis
- M&A by Industry Sector
- Deal Structure and Valuation Analysis
- Pending Deal Risk Arb Analysis
- Valuation Gap Analysis
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Transaction Activities
Week ended 07/11/2025
- Two M&A deals closed for a total disclosed value of $3.0M during the week ended July 11, 2025.
YTD Activities
- YTD’s total M&A consideration is up 26.1% from the same period in 2024, while the deal count is down approximately 21.4%. However, transactions targeting the U.S. are up 79.2% from roughly $203 million to $364 million. LTM, 69 M&A transactions have closed with a total disclosed value of $1.25B, up 7.1% from 2024. This reflects that the LTM total is composed of 24 weeks of 2024 and 28 weeks of 2025.
Pending Risk Deal Arb Analysis
Valuation Gap Analysis
- The Valuation Gap
- The Valuation Gap measures the difference between the EV/ NTM EBITDA multiple for the largest MSOs and the same multiple for the next smaller group. This measure has been a significant driver of M&A activity since a larger gap creates an opportunity for more accretive transactions.
- The companies included in the large-cap index are Cresco (CL: CSE), Curaleaf (CURA: CSE), Green Thumb (GTII: CSE), TerrAscend (TSND: TSX), Trulieve (TRUL: CSE), and Verano (VRNO: CSE). The small company index now includes Ascend (AAWH: OTCQX), AYR (AYR.A: CSE), Cannabist (CBST: Cboe), Front (FFNT: CSE), Jushi (JUSHF: OTCQX), and Schwazze (SHWX: OTC)
- The gap increased by 0.164 to -1.333 on July 11, 2025. Following the DEA announcement, the gap reached a recent peak of 3.55 on April 30, 2024. At -2.135, the gap indicates that, in the aggregate, the climate is inhospitable for transactions in which Tier 1 MSOs purchase Tier 2 MSOs. This may not be the case for individual combinations, however, as there are broad valuation metric spreads between the companies in each tier. For example, TerrAscend, GTI, and Curaleaf all trade well above the Tier 1 average, while Ascend trades well below the Tier 2 average.
- Historically, the vast majority of M&A transactions in the Cannabis Industry have involved public companies acquiring private companies, and the recently announced Vireo transaction continues this trend.
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