Experience, knowledge and support save time and money.
By Dotan Y. Melech
There is a reason we like to say that United CMC was built by a receiver, for receivers. I originally created a business where as a court-appointed receiver I assisted banks, legal representatives and companies in handling distressed assets and mitigating business losses. Now, United CMC is composed of a team of cannabis industry experts with fine-tuned expertise for helping cannabis businesses achieve the best possible outcomes, regardless of the circumstance.
Why Enter Into a Cannabis Receivership?
Our team knows how to read and understand the court orders that initiate receiverships, judge the scope of how receiverships will develop, and understand what structure is necessary to deliver reports to the court in the timely and detailed manner necessary for optimal results. At the same time, we also know the myriad minefields that this industry presents, and can act as a guide for receivers to facilitate the process that can save time and money.
The role of a receiver is demanding and comprehensive. Paying attention to details is a must because receivers face a host of obligations and tasks expected to be completed by the court once they begin the process. United CMC’s support begins by clearing tasks off the receiver’s plate that require specific knowledge of how courts work and the operational aspects of the business in distress. We use tools developed and managed by UCMC to give the receiver the support that they will need. Those tools and that infrastructure are very expensive for receivers to build on their own. The learning curve is extensive, but with our help, a quicker, cheaper and well-documented receivership is possible. Although cannabis receivership is a process where cost and time are impossible to predict, certain responsibilities are known, and UCMC knows the best way for them to be done.
- Receivers take control of the business and manage the operation. In addition to the normal operations tasks, the court expects full transparency into anything the business does.
- Receivers must report to the court—usually monthly—on all of the activities of the distressed business. Accurate and timely accounting is essential.
- Receivers will need help from outside experts who can be difficult to identify and might not know the specifics of a cannabis receivership.
- Receivers must determine what should be kept confidential—to protect the value of the business—and what can be disclosed. Those determinations are not easily made in a complex industry. Intellectual property, internal processes, genetics, branding and packaging are all examples of things that might be self-destructive if creditors or the court are aware of their existence.
- Receivers should understand—or hire someone who understands—the unique accounting and finance aspects of cannabis
United CMC’s Role Assisting Receivers
By leveraging UCMC’s experience and tools, receivers will be far better equipped to address the responsibilities listed above and save time and money by resolving issues without the need to bring in expensive outside resources. Their duty to marshall, protect and preserve the assets of the distressed business can be much more easily fulfilled.
United CMC also has a deep understanding of creditors and their needs. There are proven ways to deal and manage with creditors efficiently. Some creditors don’t want to compete for what they might consider their share of a company, while others will pull hard in one direction in an attempt to influence the court.
The value add that we provide is substantial. United CMC helps receivers understand the intricacies of reports and what might be redacted to the benefit of the business. We provide our knowledge of the industry and the space to ease the task of dealing with an overwhelming amount of moving parts. As the receiver works through the case, United CMC will be there with potential solutions to the problems that will inevitably emerge. Receivers might be experienced in another industry but often do not understand that in cannabis they need to have strong management and administration service support to achieve the most desirable outcome. And that outcome is unknown. The only option is to learn as the process proceeds and make the best decisions possible with the information at hand.
We have learned a lot along the way. As the first in the cannabis industry to offer this type of service, we made mistakes, but those mistakes allowed us to build the trusted and efficient system we now have in place to get the best outcomes out of a receivership.
Looking for support for an ongoing or upcoming receivership? A partnership with United CMC can go a long way towards saving time, saving money and getting the best results. Reach out to United CMC today.