Arizona Addiction Treatment Center

Business Description

Founded in 2016, this Arizona-based mental health and substance use disorder treatment facility has developed proprietary processes aimed to support long-term sobriety. They are a structured outpatient facility with a sober living program component (with almost 100% of patients choosing to stay in the licensed sober living housing while undergoing treatment), focusing on customized treatment plans and offering dual diagnosis (a program designed to treat those who have an addiction as well as any underlying psychological disorders).

The treatment center accepts most major health insurance plans. 20-25% of the patients are self-pay and the remainder use the benefits of health insurance; of the patients using insurance around 20-25% are typically in-network and the rest are out-of-network. The owners finalized a contract with TriWest (which services the V.A.) in August 2023 that opened up access to hundreds of thousands of potential patients. Bringing in only one patient a month from this contract equates to $115K per 45 days in revenue so the possibilities for scaling the business and growing profits are substantial.

Revenue and earnings declined in 2021 because the COVID-19 pandemic closed the facility for a large portion of the year and made patient travel to the facility difficult.  Additionally, the facility used an ineffective billing agency, causing them to switch to a different billing agency at the end of 2022.

The owners have established a solid operational structure that allows the staff to essentially run the day-to-day. The duties of the three owners could easily be absorbed by one replacement. There are no licenses required for a buyer as the requisite requirements lie with the treatment center, the Clinical Director and the Medical Director.


2020 2021 2022 Aug 2022-July 2023 (TTM)
Revenue $4,391,972 $3,447,270 $3,569,458 $4,847,604
EBITDA $2,139,829 $1,066,149 $996,231 $1,879,339

Financial Overview

Asking Price: $8,750,000

Revenue: $5,148,123 (TTM)

Income: $2,079,912 (TTM)

Multiple: 4.2x

The listing is either pending or closed so the NDA cannot be signed