Uncle Ike’s and Main Street Marijuana are the two highest grossing cannabis retailers in the state of Washington. Last year, they collectively did $50 million in gross revenue, says one of the owners in an article in Culture Magazine. And $50 million is the asking price for the two firms, which includes six stores, licenses, and intellectual property. “From a valuation perspective, the asking price defies logic,” says Ron Seigneur (Seigneur Gustafson LLP), who has done many valuations in this space. But he says that there are so many people who want to get into this business that they may be willing to pay the high price to gain a foothold in a growing industry. He likens it to the run on California vineyards in previous years.

Seigneur, who made his remarks in Marijuana Venture magazine, is a co-contributor, along with Jim Marty (Bridge West CPAs and Consultants LLC), to What It’s Worth: Value and Business Challenges in the Budding Cannabis Industry.