Enterprise Solutions

for the Cannabis Industry

F TI Consulting offers a variety of solutions and

services to the cannabis industry to bolster
profitability, enhance reputation, maintain
SERVICE HIGHLIGHTS
• Reputational and Financial Due Diligence
brand integrity, and ensure regulatory
• Financial Valuation
compliance.
• Accounting Operations and Readiness Services
We understand the unique challenges of the
• Solvency and Acquisition Disputes
cannabis industry with experience in both the
• Media Campaigns, Corporate Communications,
U.S. and Canada.
and Crisis Planning

RELEVANT SERVICE OFFERINGS

Reputational & Financial Due Diligence

FTI’s Global Risk & Investigations Practice provides detailed due diligence to the
industry and its investors. We provide in-depth backgrounds on growers, processors,
potential investors, payment processors, and vendors of any kind. This work yields a
complete profile of persons and companies that are crucial to your business success
and protects it from bad actors. These backgrounds go well beyond just a check of
criminal records to provide a complete portrait of the person or company including
financial stability, pending litigation, identification of any signs of fraud, questionable
business associates, adverse media, and a social media profile.

Anti-Money Laundering Services

FTI’s certified anti-money laundering (AML) specialists can help design an AML
compliance program that will pass muster with state regulators, financial institutions,
and investors. We ensure clients meet FinCEN standards and abide by Cole Memo
standards. Our team has extensive AML experience conducting independent reviews
and crafting and bolstering existing AML compliance programs for financial institutions
including MSBs, payment processors, and insurance companies. Our experience goes
beyond traditional businesses to include clients in cannabis, online gambling, FinTech,
and the adult entertainment industry. We offer end-to-end anti-laundering, sanctions,
and corruption consulting services. We have a history of success on matters ranging from
complex global investigations to discreet remediation tasks. We also have experience
liaising on our clients’ behalf with regulatory authorities on AML issues.

FTI CONSULTING | Enterprise Solutions for the Cannabis Industry

 Accounting Operations & Readiness
The shifting nature of the industry’s regulations can make financial reporting
compliance a challenge. FTI’s established group of professionals comprise former
audit firm CPAs, industry Controllers, CFOs, and regulators with extensive experience
resolving accounting operations, financial reporting, and auditing challenges for
clients with unusual business needs. As companies in the cannabis industry grow,
they will require a sound and reliable financial reporting infrastructure. The FTI
Financial Accounting Advisory Team has experience with both early-stage and
middle-market companies. Our deep technical accounting expertise, combined
with knowledge of financial operations, technology, and data management, helps
companies prepare for future growth, acquisitions, or public offerings.

DEA Compliance
FTI has partnered with former Drug Enforcement Agency (DEA) investigators
to provide a full suite of cannabis compliance and security solutions to support
the cannabis industry. The same ex-DEA partners who have been providing
regulatory compliance and oversight to the US pharmaceutical industry regarding
controlled substances, and are now assisting operations in the cannabis industry
to meet DEA compliance standards. We assist these operations in meeting and
exceeding regulatory mandates established by federal, state, and local agencies.
Our offerings include DEA (CSA/CFR) “seed to sale” programs, pre-license
compliance inspections, risk assessments, diversion detection and prevention,
and cash handling protection and transportation program services. Properly
implemented programs mitigate risk and avoid law enforcement scrutiny.

Intellectual Property
FTI’s Global Intellectual Property (IP) team advises clients on the value and
economic benefits of developing a strong and insightful intellectual property
plan. FTI’s IP professionals are recognized globally for their expertise and have
extensive consulting experience in emerging and complex industries such as
recycling, solar power, and biotechnology. Over 500 patents have already been
issued within the cannabis field including plant patents, patents for consumption
devices, agricultural related technology (e.g., greenhouses) and biotechnology
(e.g. R&D related to new drugs). Further, trademarks and trade secrets need
protection to effectively operate and create competitive advantages over new
entrants. Successful cannabis-related business must create smart, flexible, and
knowledgeable IP strategies to compete and protect themselves as the market
expands and matures.

FTI CONSULTING | Enterprise Solutions for the Cannabis Industry

 Reputational Enhancement
Since 2014, FTI Consulting has been helping cannabis companies improve
their commercial influence: the ability to operate their businesses with
informed credibility and the confidence of their stakeholders. FTI’s Strategic
Communications professionals can assist clients to improve public perception
by leveraging national and business media to position companies as polished
and professional in a sea of more amateur competitors. Our years of experience
assisting companies in the cannabis industry can address issues posed by
community resistance to dispensaries, rigorous state and local approval processes,
the challenges of tight deadlines for grand openings, and crisis planning in the
event of unforeseen challenges.

Acquisitions & Restructuring

FTI Consulting has the resources to help cannabis related companies navigate
the business challenges that come with rapid growth. FTI has proven experience
helping cannabis companies navigate a purchase or sale and prepare for public
offerings. Our international presence and experience means that expanding
into new markets becomes that much easier and our post-acquisition dispute
assistance is available if something goes wrong. FTI has also helped non-cannabis
companies carve-out their cannabis related business lines to provide an extra layer
of protection from the ever-shifting industry regulations.

THOUGHT LEADERS
Elaine Carey, CFE, CAMS Katya Hirose, CAMS-Audit, CFE
Managing Director, Senior Director,
elaine.carey@fticonsulting.com katya.hirose@fticonsulting.com
Los Angeles Los Angeles
+1 213 452 6324 +1 213 452 6314

Alex Arnote Frank Lazzara, CPA, CFE, CFF

Senior Director, Managing Director,
alex.arnote@fticonsulting.com frank.lazzara@FTIConsulting.com
San Francisco New York
+1 415 283 4257 +1 212 841 9336

Dean Mullett
Senior Managing Director,
dean.mullett@fticonsulting.com
Toronto
+1 416 816 0733

www.fticonsulting.com © FTI Consulting, Inc., 2018. All rights reserved.