Cannabis companies led by teams who understand the importance of cash flow and how to work a balance sheet while keeping things "lean and mean" are "going to be the winners."
That's according to Jessica Straw, EIR director at Progress Partners, who joined the Benzinga Cannabis Capital Conference Wednesday in Chicago, Illinois, to talk about how to assess the value of a cannabis business.
She was among the experts in a panel discussion moderated by Tim Seymour, founder and chief investment officer of Seymour Asset Management, portfolio manager of the Amplify Seymour Cannabis ETF CNBS and regular contributor to CNBC.
The panelists and Seymour agreed this integration is a complex task, as the industry is still relatively new and operates in a rapidly evolving legal and regulatory landscape.
But there are several key factors that can help better understand these companies' value and potential.
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Financial Metrics & Valuation Methods
Straw, who has vast experience working within the non-plant touching cannabis market, said she focuses on metrics such as revenue, profitability, team, tech and growth while assessing cannabis ancillary companies.
"We focus on five key pillars and the theme ...