For both sides
Software and services
Federal and state law current as of September 2026 — verify with counsel.
Key takeaways
- Software and services are ancillary, not a plant-touching license.
- Customer legality and concentration drive value.
- Hemp SKUs must be tested against the November 2026 definition.
- Real estate still needs cannabis-lawful use.
- No SBA assumption.
Software and services sit next to licensed operators. They are not a substitute for a state cannabis license. Price the contracts, the remaining lawful SKUs, and whether a buyer can take the customers without a change-of-control fight at the customer’s regulator.
What is being sold in Software and services — what should you verify for Software and services?
Equipment, code, routes, leases, or a property that already has cannabis-use rights. Do not blur Software and services into a dispensary listing.
| Diligence item | Why it matters on this page |
|---|---|
| Customer licenses | Churn if the customer fails or is sold |
| Contract assignability | Many operator contracts block assignment |
| Federal hemp clock | 12 November 2026 redefinition |
| SBA / banking | Indirect marijuana revenue can still be a problem |
| Real-estate use | Cannabis-lawful use and buffers |
Treat Software and services as a state-license file with a federal tax and banking overlay. Schedule III medical relief is real for qualifying activity and irrelevant to an adult-use-only book. Hemp SKUs face CRS IN12620 on the 2026 hemp definition on 12 November 2026. Do not import a 2021 multiple onto that fact pattern.
Valuation for Software and services — what should you verify for Software and services?
Ordinary small-business methods apply more cleanly than plant-touching methods, but customer concentration is cannabis-specific. Dispensary commentary multiples do not transfer. See plant-touching vs ancillary.
Process — what breaks Software and services?
Confidential teaser, NDA, QoE, assignment consents, then close. If the buyer also wants a license, that is a second file — the buy pillar.
Cited sources that govern Software and services: FinCEN FIN-2014-G001 remains the SAR frame banks actually use. 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.
What to bring to the intro call — what breaks Software and services?
Book twenty minutes with Jason Taken at HedgeStone Business Advisors. For Software and services, bring the license class, the state, the local authorization status, and whether a buyer or target is already in the room. There is no form on this site and no invented listing book. He is a business broker, not an attorney and not a licensed cannabis operator.
Related pages for Software and services — what belongs on Software and services?
Read manufacturing next if that file is open on Software and services. hemp and CBD is the companion page when Software and services needs that angle. Keep ancillary in the working set for Software and services. Read valuation next if that file is open on Software and services. transfers is the companion page when Software and services needs that angle. Keep 280E in the working set for Software and services. Read dispensaries next if that file is open on Software and services. cultivation is the companion page when Software and services needs that angle.
Which public sources belong on this file?
Cite FDA cannabis / CBD page, IRS marijuana industry page, eCFR CSA schedules, USDA hemp production. A forum post is not a substitute.
How should you underwrite Software and services?
Software and services has to lock as a license-and-tax file. In New York, scarcity can dominate. In Virginia, paper value can be near zero. Cited sources that govern Software and services: FinCEN FIN-2014-G001 remains the SAR frame banks actually use. 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.
| Check | New York | Virginia |
|---|---|---|
| Transfer / host | Verify agency | Verify city |
| Tax / 280E mix | Medical slice | Adult-use slice |
What does a 280E-literate CPA ask?
Software and services has to sequence as a license-and-tax file. In Florida, scarcity can dominate. In Oklahoma, paper value can be near zero. Cited sources that govern Software and services: IRC §280E still disallows ordinary deductions on Schedule I trafficking, which is why adult-use books stay in 280E. FinCEN FIN-2014-G001 remains the SAR frame banks actually use. 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.
| Check | Florida | Oklahoma |
|---|---|---|
| Transfer / host | Verify agency | Verify city |
| Tax / 280E mix | Medical slice | Adult-use slice |
How should approval be sequenced?
Software and services has to map as a license-and-tax file. In California, scarcity can dominate. In Pennsylvania, paper value can be near zero. Cited sources that govern Software and services: 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. IRC §280E still disallows ordinary deductions on Schedule I trafficking, which is why adult-use books stay in 280E.
| Check | California | Pennsylvania |
|---|---|---|
| Transfer / host | Verify agency | Verify city |
| Tax / 280E mix | Medical slice | Adult-use slice |
Where does the file break in Illinois versus Minnesota?
Software and services has to rebuild as a license-and-tax file. In Illinois, scarcity can dominate. In Minnesota, paper value can be near zero. Cited sources that govern Software and services: 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.
| Check | Illinois | Minnesota |
|---|---|---|
| Transfer / host | Verify agency | Verify city |
| Tax / 280E mix | Medical slice | Adult-use slice |
What will Jason Taken not promise?
Software and services has to hold back as a license-and-tax file. In Maryland, scarcity can dominate. In Nevada, paper value can be near zero. Cited sources that govern Software and services: Federal Register 2026-08176 is the April 2026 medical / FDA-approved marijuana Schedule III order. IRC §280E still disallows ordinary deductions on Schedule I trafficking, which is why adult-use books stay in 280E. FinCEN FIN-2014-G001 remains the SAR frame banks actually use. SBA SOP 50 10 8 keeps plant-touching targets out of 7(a) and 504, including medical.
| Check | Maryland | Nevada |
|---|---|---|
| Transfer / host | Verify agency | Verify city |
| Tax / 280E mix | Medical slice | Adult-use slice |
How should you underwrite Software and services?
Software and services has to document as a license-and-tax file. In New Jersey, scarcity can dominate. In Missouri, paper value can be near zero. Cited sources that govern Software and services: 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. IRC §280E still disallows ordinary deductions on Schedule I trafficking, which is why adult-use books stay in 280E. FinCEN FIN-2014-G001 remains the SAR frame banks actually use.
| Check | New Jersey | Missouri |
|---|---|---|
| Transfer / host | Verify agency | Verify city |
| Tax / 280E mix | Medical slice | Adult-use slice |
What does a 280E-literate CPA ask?
Software and services has to age as a license-and-tax file. In Arizona, scarcity can dominate. In Oregon, paper value can be near zero. Cited sources that govern Software and services: FinCEN FIN-2014-G001 remains the SAR frame banks actually use. 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.
| Check | Arizona | Oregon |
|---|---|---|
| Transfer / host | Verify agency | Verify city |
| Tax / 280E mix | Medical slice | Adult-use slice |
How should approval be sequenced?
Software and services has to disclose as a license-and-tax file. In Massachusetts, scarcity can dominate. In Washington, paper value can be near zero. Cited sources that govern Software and services: IRC §280E still disallows ordinary deductions on Schedule I trafficking, which is why adult-use books stay in 280E. FinCEN FIN-2014-G001 remains the SAR frame banks actually use. 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.
| Check | Massachusetts | Washington |
|---|---|---|
| Transfer / host | Verify agency | Verify city |
| Tax / 280E mix | Medical slice | Adult-use slice |
Frequently asked questions
How long can a license transfer take?
Published clocks vary by state and completeness. Treat 60–180+ days after a complete packet as a broker range unless the agency publishes a deadline. Arizona and Oregon do not share a clock on Software and services.
Can control move before approval?
Not if you want to keep the license. Stage closing and keep any MSA inside what the statute allows. Software and services is still an agency event.
Will SBA finance a plant-touching purchase?
No. [SBA SOP 50 10 8](https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs) treats plant-touching marijuana businesses as ineligible for 7(a) and 504, including medical. Software and services needs another stack.
What does HedgeStone actually do here?
Eligibility pre-screen, confidential match, METRC-aware pricing, and an approval-contingent process. Not a guaranteed price or a guaranteed yes. That is the job on Software and services.
Is this legal or tax advice?
No. Educational only. Use cannabis-specialized counsel and a 280E-literate CPA. Jason Taken is a business broker, not an attorney and not a licensed operator.
Which records actually prove the story?
Track-and-trace, tax filings, the lease cannabis-use clause, and a cap table that matches the application. A vanity P&L is a brochure when you are underwriting Software and services.
Sources
- SBA SOP 50 10 8 (effective 1 June 2025) — marijuana ineligibility — https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs
- Congress.gov S.4942 — SAFE Banking Act of 2026 (introduced, not enacted) — https://www.congress.gov/bill/119th-congress/senate-bill/4942
- Congress.gov H.R.9471 — companion SAFE Banking bill — https://www.congress.gov/bill/119th-congress/house-bill/9471
- CRS IF13136 / IN12620 — hemp definition change effective 12 November 2026 (P.L. 119-37) — https://www.congress.gov/crs-product/IN12620
- IRC §280E — https://www.law.cornell.edu/uscode/text/26/280E
- FDA cannabis and CBD page — https://www.fda.gov/news-events/public-health-focus/fda-regulation-cannabis-and-cannabis-derived-products-including-cannabidiol-cbd
- IRS marijuana industry — https://www.irs.gov/businesses/small-businesses-self-employed/marijuana-industry
- eCFR 21 CFR chapter II — https://www.ecfr.gov/current/title-21/chapter-II
- Federal Register 2026-08176 (28 April 2026) — medical / FDA-approved marijuana to Schedule III — https://www.federalregister.gov/d/2026-08176
- FinCEN FIN-2014-G001 — BSA expectations for marijuana-related businesses — https://www.fincen.gov/resources/statutes-regulations/guidance/bsa-expectations-regarding-marijuana-related-businesses
- Viridian Capital public commentary — Tier 1 U.S. MSO EV/EBITDA ~4.16x (2025 consensus)