Company Overview
American Healthcare Capital is pleased to exclusively introduce an industry-leading provider of a full spectrum of modern patient care services and solutions, including behavioral health services, substance use, and addiction counseling, ambulatory detoxification, day habilitation, medication management, intensive outpatient programs, a certified community mental health center (CMHC), therapeutic group homes with par tial hospitalization, a home health and personal care services agency.
The Company has provided this suite of services to teens, adults, and seniors, for the past 18 years, through 10 locations strategically spread across the state. Their current average census exceeds 500 patients, and they employ over 160 team members. The market covered by the Company is destined to grow, based on the fact that one in four Americans has a mental or substance use disorder (latest Substance Abuse and Mental Health Services Administration statistic), and 54 million adults in the U.S. are aged 65 years & above, accounting for 16.5% of the country’s population (as per the U.S. Census Bureau latest reporting).
Financial Overview
The Companies provide healthcare services to their diversified patient base, working with most commercial insurance plans, Medicaid, and Medicare. Based on the combined sales of all ten managed locations in 2021 and the projected full-year consolidated results for 2024, the Company has grown revenue from $6.1 million to $8 million, translating into a 7% compound annual growth rate (“CAGR”), and an overall growth rate of 30% over the period considered. For the same period, adjusted EBITDA has grown 22% CAGR from $621 thousand in 2021 to $1.4 million projected for 2024. Adjusted 2024 EBITDA is expected to be 18% of the Revenue.
Management Overview
The Companies’ Management has recognized that they are at a critical juncture. Having achieved the ambitious goal of owning 10 locations in the state across five cities covering an area stretching over 220 miles (north to south), and with effective implementation of an integrated management system based on personnel education, marketing, and outreach programs, the group wishes to see the Companies expand their growth horizon through a more aggressive approach to new business development in core and ancillary services, including a comprehensive strategy for further growth through de novo locations and possible acquisitions. As a result, the ownership has decided to explore a sale of the Companies to a possible strategic partner and has engaged American Healthcare Capital as the exclusive advisor. The management is open to all types of deal structures, including earnout and roll-over equity.
Asking Price
The Asking price for this opportunity is $8 million.
