In the Media
Reclassifying Cannabis Could Save Businesses Millions in Taxes and Spark an Influx of Capital
Read Time: 1 minCannabis industry team co-chair Perry Salzhauer (Seattle) is quoted in a May 6 piece on Inc. related to the impact of reclassification on cannabis-related investment and operations.
But there’s a fresh influx of capital that could be on the way thanks to reclassification. Less conservative private equity funds might turn their gaze to acquiring cannabis-related assets, says Perry Salzhauer, an attorney at McGlinchey Stafford law firm who co-chairs the firm’s cannabis industry group.
The change with 280E would likely fuel that interest, Salzhauer explains, because the nebulous tax component muddled valuations and weighed down company margins. “Now that the financial statements and the tax returns will look like an ordinary business, there’s a widely held belief that [PE firms will] start looking more closely at some of these businesses to see whether there’s some targets that might fall within their general scope,” Salzhauer says.