Revenue multiple

Revenue multiple

Federal and state law current as of September 2026 — verify with counsel.

Key takeaways

Price ÷ sales. Used when EBITDA is negative. Commentary 0.5x–1.5x for some single stores.
Use the term the way the regulator uses it.
Do not import another state’s definition.
Ask counsel before the LOI uses the word as a promise.

Revenue multiple is the file this page underwrites. Price ÷ sales. Used when EBITDA is negative. Commentary 0.5x–1.5x for some single stores. Federal and state law current as of September 2026 — verify with counsel. This is educational, not a guarantee of price, timing, approval, or financing.

Why Revenue multiple matters in a cannabis sale — what belongs on Revenue multiple?

Owners lose months when Revenue multiple is treated as slang. The application, the LOI, and the agency packet have to use one definition.

How Revenue multiple is used correctly — why does this change Revenue multiple?

The correct use of Revenue multiple is the one that a Michigan reviewer would recognize. Do not import a Ohio habit unless the premises sit there.

How Revenue multiple is misused — how should you read this on Revenue multiple?

The usual misuse is turning revenue multiple into a premium without a citation. Buyers then treat it as optional. Neither side can close on that.

Use of Revenue multiple	Broker reading
Revenue multiple in a CIM	Must match the statute, not a slogan
Revenue multiple in an LOI	If it requires agency consent, say so
Revenue multiple in a model	Label ranges; do not hide 280E
Revenue multiple vs a neighbor word	Do not swap revenue multiple for a look-alike term from another state

File example that turns on Revenue multiple — why does this change Revenue multiple?

Illustrative: a CIM inflates revenue multiple into a premium. Diligence removes it. Price moves. See APA vs MIPA if the term changes who keeps the liability.

Nearby words people confuse with Revenue multiple — what should you verify for Revenue multiple?

If someone says revenue multiple and means a different glossary entry, stop and pick the right slug. The glossary index exists so Revenue multiple stays precise.

Jason Taken will not price Revenue multiple on a rumor that “rescheduling is done.” Medical rescheduling is done for the activity the order covers. Adult-use is not. FinCEN FIN-2014-G001 and SBA SOP 50 10 8 did not disappear in April 2026. H.R.9471 is the House companion, also unenacted.

Cited sources that govern Revenue multiple: SBA SOP 50 10 8 keeps plant-touching targets out of 7(a) and 504, including medical. SAFE Banking Act of 2026, S.4942 and H.R.9471 were introduced in 2026 and are not law. Hemp SKUs must be read against CRS IN12620 on the 2026 hemp definition and CRS IF13136; the redefinition date is 12 November 2026. Federal Register 2026-08176 is the April 2026 medical / FDA-approved marijuana Schedule III order.

Read buy next if that file is open on Revenue multiple. 280E is the companion page when Revenue multiple needs that angle. Keep METRC in the working set for Revenue multiple. Read glossary index next if that file is open on Revenue multiple. federal law is the companion page when Revenue multiple needs that angle. Keep 280E in the working set for Revenue multiple. Read deal structure next if that file is open on Revenue multiple. sell is the companion page when Revenue multiple needs that angle.

Which public sources belong on this file?

Read USDA hemp production, USCIS Policy Manual, U.S. Treasury, DEA drug scheduling alongside the agency packet. A forum post is not a substitute.

Frequently asked questions

What does Revenue multiple mean in a cannabis sale?

Price ÷ sales. Used when EBITDA is negative. Commentary 0.5x–1.5x for some single stores.

Is this legal advice?

No. Confirm the term against the statute and counsel.

Does the definition travel across states?

No. Revenue multiple in one statute is not automatically Revenue multiple in another.

Where does it show up in a deal?

Applications, LOIs, CIMs, and often the approval contingency.