Jan 24 • General discussion
I found a business excelling in the fast-growing mental health & addiction recovery space.
As an M&A professional, here’s why this is a prime opportunity:• The market: Mental health & substance abuse treatment• The target: Dual-diagnosis outpatient programs• The plan: Scale and optimize
Let’s break it down:
The MarketMental health & addiction recovery is a multi-billion-dollar industry, and demand is only increasing.
This Arizona-based facility combines outpatient treatment with sober living programs, offering long-term sobriety solutions.
Revenue? $4.93M (2023/24 avg). But that’s not the most interesting part. 👇
The BusinessFounded in 2016, this facility built its reputation on:• Customized treatment plans• A dual-diagnosis approach (addiction + mental health)• High retention: Nearly 100% of patients choose their sober living housing
With proprietary methods and a new VA contract, they’re poised for massive growth.
The Numbers💵 Revenue: $4.93M (2023/24 avg)💰 Earnings (SDE): $1.8M (2023/24 avg)📈 Asking Price: $8M🔗 Multiple: 4.4x
Post-COVID, they resolved billing inefficiencies, added a new residential facility, and are back on track for steady growth.
Growth PotentialThis business has untapped opportunities:1️⃣ Expand into detox & residential programs (higher revenue/patient)2️⃣ Reintroduce evening outpatient care3️⃣ Leverage TriWest VA contract for massive patient access4️⃣ Boost marketing with a mix of digital + boots-on-ground
Challenges📉 Past billing inefficiencies impacted financials (now resolved).👥 Growth depends on execution of new VA contract.💻 Marketing underleveraged—great opportunity for the next owner.
But these are solvable with the right systems and strategy.
The OpportunityThis isn’t just a business; it’s a chance to make an impact. With the foundation already built, there’s huge upside:
• SBA loan eligible (up to $5M)• Staff handles daily operations—owners are hands-off• Scalable model with room for innovation
My Take as an AnalystThis deal is a rare find in healthcare M&A:
✔ Fair valuation at 4.4x multiple✔ Strong fundamentals with steady revenue growth✔ Huge untapped potential in both patient flow and service offerings
If executed well, this could easily hit $10M+ in revenue.
What would you do with this business?
Comment “mental health” below for the full deal info and my weekly deal insights. 👇
This might just be the perfect acquisition for the right buyer! 🚀
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I found a business excelling in the fast-growing mental health & addiction recovery space.
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