Replies to post #13848 on Medicine Man Technologies Inc (SHWZ)

[GoldRu$$H]

The entire article/interview is terrific. It is fascinating to learn more of Dye's business philosophy and practices. Interesting to read of how they approach a M&A.


"M&A Strategy
Schwazze has been quite acquisitive as they rapidly grow out their business. Dye uses a highly systematic approach in acquiring and integrating other businesses. It starts by looking at the state of Colorado, putting all the stores on a map, and pulling metric reports. They evaluate who has the most volume out of their dispensaries. They compare that versus their stores to determine if any of them represent a potential M&A target. Can they grow density and market share by making the acquisition?

Then they look at their own internal capabilities: Can they run their playbook and operate their blueprint at these locations? Do they have the staff available to manage that outlet? If the answer is yes and there is synergy, then they consider moving forward. Timing is important as well: Is there going to be an 18-month romance or is this going to be something that they can get accomplished in 2 to 3-months? Schwazze has a synergy-realization office that is run by their data science group, and all M&A candidates must pass through their muster."

[Jeans]

Thx, great article. A few points that get me excited;

“Denver, for example, is the second-largest cannabis market in the U.S. …”

Dan Pabon, the general counsel, was actually the person who put the rules in place in Colorado on how to regulate cannabis…He has a great relationship with state officials, the governor, the mayor of Denver, and is well thought of in Washington D.C. as well.

The company aspires to be a billion-dollar business. In Colorado alone, they expect to become a $500 to $600 M business. Dye expects revenues to grow to approximately $2.5 Bn by 2022.

Schwazze is the largest wholesaler of cannabis distillate in Colorado today with a little over 20% of the market…

They are going to aggressively open retail stores all over Colorado.

…they intend to build an all-encompassing delivery capability that includes curbside pickup, same-day delivery, or next-day fulfillment. In fact, they are already delivering in Aurora, Colorado…”

GRRREAT stuff!!