Cannabis Investment Banking
Wanted to know whawhat everyone's thoughts were on IB in the cannabis sector? Would working within a bank covering this group pigeon hole you and make moving into another sector group later difficult? I would think you would still be able to get into a consumer/retail group from there.
Is there anyone in this sector group that could shed light on deal activity and it's long term prospects?
Still very early days. Given the large regulatory component always present, I think it's anyone's best guest as to the long-term horizon of deal activity and stability in the sector. Currently there is a lot of activity / consolidation in the sector due to the nascency of the space, so I would think that it's certainly an attractive space to work in today as you will be in on the ground floor of activity that will shape companies and the sector for years to come.
M&A in cannabis is going to get nuts so I think it's a strong opportunity. Right now, you have very dis-aggregated operations in different states due to regulations but as more states legalize and the federal framework improves AND banking slowly enters the space, you're going to see massive consolidation. Right now, unit costs are quite high because the economies of scale are limited from the factors mentioned above but as these ease, you'll see big players gobble up everything.
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