2015 Private Equity Money in Addiction Treatment

If I was an addiction treatment center owner in 2015 and someone came to me with an offer to sell my drug rehab I would seriously consider it. Why? There is a lot of new money in the addiction treatment and behavioral space right now and the addiction treatment space is expanding. You will see a lot of private equity firms as well as firms with real estate holdings that are very interested in the space.

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I would say that right now is the boom times in the addiction treatment field. CRC recently got acquired by Acadia Healthcare in a $1.18 Billion deal. There are a lot of lead generation companies from other industries entering the space. The big guys are snapping up the little guys. It is harder and harder for the 6-20 bed facilities to thrive.

For the smaller players it is a lot to manage the marketing, the staff, the clinical record keeping, HIPAA compliance, licensing, zoning and many other business processes required to be competitive in the addiction treatment field.

With the new money entering the field it can be cyclical and right now is potentially a really good time to “sell at top of market” while the NASDAQ is at and all time high and before everyone gets pre-election jitters. With all the “new drug rehab money” coming into the space there is going to be consolidation for better or for worse the time might be right to sell a business while the market is strong.

If you are looking for buyers or sellers give us a call. (617) 229-6753

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