Company Overview
American Healthcare Capital is proud to exclusively present a leading provider of Treatment Centers for Behavioral Health, Mental Health, and Substance Use, offering a continuum of care through different levels of treatment programs (Residential, Partial Hospitalization, Intensive Outpatient Services, and Group Therapy), and focusing on recovery, wellness, and patient rehabilitation.
The Company provides this suite of services to patients suffering from Complex Trauma, Eating Disorders, Depression, Anxiety, Mood Disorders, Obsessive Compulsive Disorder, Abandonment, Impulse Control, ADHD, Gender Identity, Somatic Symptoms, Grieff & Loss, Self-harm Behavior, Suicidal Thoughts & Behavior, and Substance Addictions.
Financial Overview
Managed from its headquarters in the Pacific Region of the U.S., this company operates with a 135-member team across twelve locations: 5 Residential Mental Health (4 for adults and 1 for teens), 1 Transitional Mental Health, 1 Residential Detoxification, 1 Residential Substance Use, 2 Sober Living Homes, 1 Outpatient Mental Health, and 1 Outpatient Substance Use. The Company currently takes care of over 60 patients (September 2024 data), and has projected revenue in 2025 of $14.5 million, with an adjusted EBITDA of $1.5 million.
The company’s payer mix is 92% insurance providers and 8% private payers. From 2021 to the forecasted results for 2025, the company has achieved significant revenue growth, rising from $10.7 million to $14.5 million, representing a compound annual growth rate (CAGR) of 6.3%. During the same period, adjusted EBITDA has grown at a notable 12% CAGR, increasing from $844,000 in 2021 to a projected $1.5 million by 2025. The company’s Gross Margin is expected to reach 9% of Revenue in 2025.
Exit Overview
The company and its owner are now at a pivotal point. The President & CEO is looking to retire in the next 5 to 6 years and over this time is looking to taper down involvement in the business. At the same time, they would like to see the company continue to grow and the capital invested in de novo facilities since 2020 come to fruition.
As a result, the owner has decided to explore selling the company and has appointed American Healthcare Capital as the exclusive M&A advisor. The owner is open to various deal structures, including equity roll-over or a full buyout, depending on the buyer’s background and experience in scaling healthcare businesses. In either case, the current owner would consider staying on for up to 5 years post-transaction.
Asking Price
The asking price for this opportunity is $13 million excluding cash, accounts receivable, and real estate.
