Company Overview
American Healthcare Capital is proud to exclusively present a leading provider of Residential Treatment Centers, including both intensive outpatient (OIP) and outpatient
programs(OP), all focused on patient recovery, wellness, and care. Headquartered in the Northeast region of the U.S., this company operates multiple Residential Treatment Centers. They also have a new facility ramping up operations in 2025 that will double the Company’s current capacity from 200 to over 400 patients.
Financial Overview
The company boasts a well-established and diversified payer mix:
• State funding: 65%
• County funding: 16%
• Medicaid: 16%
• Other (including cash): 3%
From 2021 to the forecasted results for 2025, the company has achieved significant revenue growth, rising from $5.2 million to $13.5 million, which represents a compound annual growth rate (CAGR) of 21.2%. During the same period, adjusted EBITDA has grown at a notable 46% CAGR, increasing from $890,000 in 2021 to a projected $5.8 million by 2025. The company’s Gross Margin is expected to reach 40% by 2025.
The company and its leadership team are now at a pivotal point. Since 2021, the company has invested over $5 million to create a de novo facility to double the Company’s capacity. This facility will significantly boost the company’s revenue and profitability by leveraging the higher rates associated with these services. Concurrently, the 100% owner is planning to retire within the next 5 to 6 years.
Asking Price
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 an 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.
The asking price for this opportunity will be determined through further discussion and negotiation.
