Oregon Cannabis: What is My Partial Marijuana Dispensary Ownership Interest Worth?

A couple of months ago, my colleague Vince Sliwoski wrote Oregon Cannabis Dispensary Sales: What We Are Seeing on Valuation, which focused on the secondary market for cannabis licenses and businesses. Vince explained that the retail market, i.e. the purchase and sale of dispensaries, is still mostly done on multiples of revenue. But what is a less than 100% interest in an Oregon marijuana dispensary worth?

The answer depends on several factors that extend beyond the mere revenues or profitability of the store. These include:

how the dispensary is organized what the organizing documents say or don’t say about the methodology for calculating the value of partial interest whether there is a right of first refusal for other owners the amount of control the interest holder has over the operations of the business whether the question is being asked in the context of adverse hostile litigation, and whether certain discounts apply.

This post discusses how the the type of entity selected at formation and its governing documents may affect the value of an ownership interests in a marijuana dispensary.

Take the common litigation scenario where one or more members of a limited liability company seeks to expel another member from

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