Cannabis Industry M&A Volume Hits $1.75 Billion With Smaller Deals

Key Takeaway

Cannabis industry mergers and acquisitions totaled approximately $1.75 billion in 2023, with combined equity and debt capital flows into the sector increasing 50 percent year-over-year despite depressed public company valuations. The average cannabis deal size dropped to $20.4 million, reflecting a pivot away from large transformational mergers toward smaller, strategic bolt-on transactions. The trend reflected both the collapse of mega-deal valuations and the availability of distressed assets as smaller operators exited the industry. Canadian and US multistate operators were the most active acquirers. For cannabis investors and operators, the 2023 M&A pattern confirmed that industry consolidation would continue but at lower prices and through strategic rather than transformational deals.