Darren Gleeman named Best Financial Advisor
At the Green Market Report Finance Summit, hosted at the New England Cannabis Convention in Boston on March 22, Darren Gleeman, managing partner of MBO Ventures, picked up the award for Best Financial Advisor.
Gleeman was drawn to the cannabis industry after learning about the tax burden imposed by 280E regulations, “which has been the bane of the cannabis existence,” he said. And he thought he had a solution for the problem.
“A company owned 100% by an (Employee Stock Ownership Plan) pays no taxes. If you pay no taxes, deductions do not matter,” Gleeman told Green Market Report. “When I realized this, I knew it could change the industry.”
MBO Ventures primairly focuses on implementing exit strategies for business owners, whether it’s through family succession, a management buy-out, or a 100% sale to employees. The firm also leverages the tax advantages of ESOPs to help owners earn more money when selling their company to an ESOP versus private equity.
Gleeman’s proudest achievement to date is developing a patent-pending ESOP methodology and successfully structuring four cannabis companies as 100% ESOP-owned. The closing of the first ESOP deal was a particularly thrilling moment for him.
“When the first one closed, I was pretty psyched,” he said.
While not for every business, the novel nature of the ESOP structure often leads to skepticism, he said, with many saying it “sounds too good to be true.”
Despite that perception, Gleeman remains optimistic about the cannabis industry. He said he’s hopeful for federal legalization within the next five years, which would open up even more opportunities for growth and innovation in the field.
The firm’s initiatives, led by Gleeman, haven’t gone unnoticed. The company’s landmark transaction with Theory Wellness, which resulted in the cannabis industry’s inaugural ESOP, displayed the firm’s ability to execute deals.
Gleeman is a graduate of the University of Pennsylvania’s Wharton School of Business and was the founder of e-Coupons and a managing partner of both GMD Trading and GB Trading.
