MedWell Health and Wellness Centers – Medical Marijuana Certification Business serving the MA, RI and FL markets sold to industry buyer
MedWell Health & Wellness Centers are Medical Cannabis Evaluation Clinics serving the Massachusetts, Florida, and Rhode Island populations with service options unparalleled in the cannabis community. Services are rendered by compassionate physicians, nurses, and cannabis professionals dedicated to the advancement of education-based Medical Cannabis Certification.
A strategic buyer approached the business owners about selling. At the time, the owners were not yet thinking about selling their successful and growing business. As the dominant medical cannabis certification business in Massachusetts with a rapidly growing presence in Florida, the owners were focused on continued growth at the time of the offer.
With an offer in hand, the owners of MedWell contacted BayState Business Brokers for insight and guidance in evaluating the unsolicited offer. Business Broker Molly Hanson worked with the owners to first assess the offer and then to guide and advise them regarding selling some or all their MedWell centers.
BayState Business Brokers’ Approach
The first priority for Molly Hanson was a business valuation to help the owners assess the quality of the offer. With a business valuation prepared, conversations with the strategic buyer progressed while, simultaneously, Hanson prepared to take the business to be presented to other targeted buyers thereby creating a competitive environment. Ultimately, the initial strategic buyer increased their offer significantly and further negotiation of terms to complete the sale of all MedWell locations ensued.
Hanson’s role was largely consultative, assisting the sellers through their first liquidity event, recommending an attorney for them to retain for the sale and negotiating the offer. The seller and buyer quickly established a rapport and saw the benefits of complementary business interests to start building a productive and mutually beneficial relationship.
Hanson guided the sellers through the due diligence process, working closely with the CEO, CFO and COO. Given the nuances of the medical cannabis industry including the inability to leverage traditional financing sources, it was essential that the industry buyer was private equity backed in order to complete the deal.
While an acquisition, the transaction had many characteristics of a merger as the terms of the agreement included some of the sellers remaining in the business and terms specific to cross promotional opportunities with other related-medical businesses that the sellers also owned.
With BayState Business Brokers’ Molly Hanson quarterbacking the agreement, the deal terms included some creative mutual benefits including cross promotional opportunities for both parties. What began as an unsolicited offer led to a symbiotic business relationship for ongoing mutual benefit.
What Our Clients Say
Your deep knowledge of the marketplace proved invaluable in negotiating the final details of the sale, allowing us to maximize our return on investment. Your team was also excellent in fielding questions from potential buyers and providing detailed answers to inquiries regarding our company’s performance.
We’re truly thankful for your dedicated work ethic that got us such a fantastic result! We would highly recommend Molly Hanson and BayState Business Brokers to anyone looking for professional representation when selling their small business.
Jonathan Waxman, Chief Executive Officer