Solutions for Difficult Situations
CDTFA debt, vendor pressure, landlord problems, cash for keys — we've structured deals around all of them.
Cash for Keys
A "cash for keys" arrangement is when a tenant receives a payment in exchange for voluntarily surrendering possession of a property. For dispensary operators, this often happens when the landlord wants the space back — whether to re-lease at higher rates, sell the property, or exit the cannabis business entirely.
When Cash for Keys Applies
Cash for keys situations typically arise when there's friction between the dispensary operator and the landlord, but both parties want to avoid the time and cost of formal eviction proceedings. The landlord offers money; you walk away cleanly.
How We Help
We can step in as the buyer of your license/business, coordinate with your landlord on the cash-for-keys terms, and ensure you get paid. In many cases, the landlord's primary concern is vacant possession — they don't care who actually buys your license, as long as you're out by a certain date.
We've handled cash-for-keys deals where the operator walked away with cash in hand within days. We know how to move fast when there's a deadline.
What You Get
Cash for your license, a clean exit from your lease, and closure on a stressful situation. No legal battles, no drawn-out negotiations, no uncertainty.
CDTFA Debt — No Problem
California cannabis tax liability under the California Department of Tax and Fee Administration (CDTFA) is one of the most common issues facing dispensary operators. Cultivation tax, excise tax, sales tax — the obligations add up fast, especially when margins are tight.
The Reality of CDTFA Debt
Many operators fall behind on CDTFA payments due to cash flow problems, banking issues, or simple oversight. Once you're behind, penalties and interest compound quickly. The CDTFA can pursue liens, levies, and even personal liability for responsible parties.
How We Structure Deals
When we acquire a license with outstanding CDTFA debt, we factor that liability into our offer. Depending on the situation, we may: structure the purchase to directly address the debt at closing, negotiate with CDTFA for payment plans or settlements as part of the transaction, or account for the debt in the purchase price while you remain responsible for the balance.
We're not tax advisors, and we can't give you legal advice about your CDTFA obligations. But we can structure acquisitions that account for these realities and get you cash even when you owe taxes.
What This Means for You
CDTFA debt doesn't have to mean your license is worthless. It affects valuation, but it doesn't necessarily kill a deal. Talk to us about your specific situation.
Vendor Debt — No Problem
Dispensaries operate on complex supply chains involving cultivators, manufacturers, distributors, and service providers. When cash flow gets tight, vendor invoices pile up — and suppliers don't wait forever.
The Vendor Pressure Problem
Unpaid vendors can cut off supply, file lawsuits, or report you to the licensing authorities. Some will pursue personal guarantees. The pressure compounds: you can't sell product you can't buy, and you can't pay vendors with revenue you're not generating.
How We Approach Vendor Debt
We understand the cannabis supply chain and the leverage that vendors hold. When structuring an acquisition, we assess your vendor obligations and determine how they affect the deal. Options include: purchasing the business with vendor debt as a known liability (factored into price), negotiating with key vendors as part of the transaction, or structuring the deal so certain obligations transfer to us.
Every situation is different. Some vendors will negotiate settlements for immediate payment. Others will want full dollar recovery. We've dealt with all types.
Getting Out Clean
Our goal is to structure a deal that lets you exit without vendor lawsuits following you. That requires understanding exactly what you owe and to whom — so be prepared to share your payables when we talk.
Landlord Debt — No Problem
Rent is often a dispensary's largest fixed expense. When revenue drops, rent arrears accumulate fast. Cannabis leases typically come with personal guarantees, making the stakes even higher.
The Landlord Dilemma
Landlords have limited options with cannabis tenants. They can't easily re-lease to another dispensary (licensing restrictions), and evicting you means months of vacancy while they figure out alternative uses. This creates negotiating leverage — but only if you use it correctly.
How We Navigate Landlord Issues
We've negotiated with landlords on behalf of sellers in various situations: rent arrears that need to be addressed at closing, lease assumptions where the landlord must approve the new tenant, early terminations where neither party wants to continue, and contested evictions where a quick resolution benefits everyone.
In many cases, landlords prefer a clean transaction to a messy eviction. We can often structure deals where everyone walks away satisfied — you with cash, the landlord with vacant possession or a new creditworthy tenant.
Personal Guarantee Concerns
If you've personally guaranteed the lease, your exposure doesn't automatically end when you sell the license. We'll discuss how to address guarantee release or indemnification as part of the transaction structure.
Other Situations We Handle
The four scenarios above cover most of our deals, but we've seen plenty of variations.
Compliance Issues
Behind on track-and-trace? Facing regulatory scrutiny? License renewal uncertain? These affect valuation but often don't kill deals.
Partnership Disputes
Co-owners at odds? Need a buyout but can't agree on terms? We can sometimes provide the liquidity that breaks deadlocks.
Burnout & Exit Fatigue
Not every exit is distressed. Some operators are simply done and want out without a lengthy sale process. We move fast for motivated sellers.
What's Your Situation?
Every deal is different. Tell us what you're facing, and we'll tell you what we can do.