Surprisingly, Aside from $500M+ Megadeals, 2022 Is A Normal M&A Year

The popular press notion that 2022 has been a disastrous M&A year in U.S. Cannabis is not the case.

The graph breaks U.S. Cannabis M&A into deal size categories. Taken from the top: Green represents transactions over $500M, Brown indicates $100M-$500M deals, Blue depicts $25M-$100M deals, and Yellow represents transactions under $25M.

2021 was the outlier year, with three megadeals totaling $3.41B, contributing to a $10.3B total. The deals include the two de-SPACing transactions that formed Glass House Brands (OTC:GLASF) and WeedMaps, as well as the Trulieve (OTC:TCNNF) acquisition of Harvest Health.  

2020 also included two megadeals by Curaleaf (OTC:CURLF): the February 2020 acquisition of Select and the November acquisitions of Grass Roots.

Annualizing 2022’s YTD $2.57B figure gives $3.71B, equal to 2019’s total and 23% over 2020’s total.

2022 may be down, but it’s too soon to count it out in the M&A Olympics. While it is unlikely to catch 2021, it is far from a disastrous year for M&A.

 

The Viridian Capital Chart of the Week highlights key investment, valuation and M&A trends taken from the Viridian Cannabis Deal Tracker.

Since its inception in 2015, the Viridian Cannabis Deal Tracker has tracked and analyzed more than 2,500 capital raises and 1,000 M&A transactions totaling over $50 billion in aggregate value.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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