Business valuation practitioners may want to check out a potential new industry client: the legal marijuana business. This is “an accountant’s dream,” says Jim Marty (Bridge West CPAs), who started up a separate accounting firm devoted to this industry. He now has over 100 clients, including growers, retailers, suppliers, and other entities, according to a report in CPATrendlines.

Tricky valuations: The industry’s relatively short history, high level of risk, high volatility, and complex, quickly evolving regulatory structure are unique considerations that make valuations tricky. Especially problematic is the determination of the subject company’s proper risk-adjusted discount rate and the valuation multiple to apply to cash flow and EBITDA.

Marty and other financial and valuation experts, including Ron Seigneur (Signeur Gustafson LLP), give their insights into the valuation of these firms in a special report from Business Valuation Resources, Marijuana Dispensaries: A Budding Industry Brings Opportunities and Challenges for Business Appraisers.