7-Year Established Addiction Recovery Center in Los Angeles with Insurance Payments

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Financial Details

Asking Price:
$12,700,000
Annual Revenue:
$7,800,000
Cash Flow / SDE:
$3,600,000
Profit Metric:
Cash Flow
Valuation Multiple:
3.5x
Location:
Los Angeles, CA, US
Source:
Date:
October 30, 2025

Key Highlights

Established 7 years with solid growth and profitability since 2017.
Semi-absentee ownership structure allows for flexible involvement.
High revenue stream primarily supported by PPO medical insurance reimbursements (95% of patients).

Description

This is a highly profitable, established (since 2017) Addiction Recovery Center located in Los Angeles County, California. The business operates as a state-licensed facility offering a vertically integrated continuum of care, including a 12-bed Residential Treatment Center (RTC) for detoxification and an Intensive Outpatient Program (IOP). A significant competitive advantage is the payer mix, with approximately 95% of patients covered by PPO (Out-of-Network) medical insurance. The operation is structured for semi-absentee ownership, and the buyer does not need specific licensing. The business shows strong momentum with a projected 30% growth in 2025.

Industry Information

Industry Description:
Addiction Recovery Center providing medically assisted residential treatment (RTC) and intensive outpatient programs (IOP), primarily paid through PPO medical insurance.
Classification:
Health Care & Fitness

Operational Snapshot

Year Established:
2017

Real Estate & Lease

Status:
Not Disclosed

Broker Contact

Name:
Hoke Nagahori
Company:
Select Business Sales

Listing Details

Listing ID:
8b1a554a-0d89-4793-b598-a76869b8f6df
Source Listing ID:
2435122
Deal Status:
For Sale
Last Updated:
October 30, 2025
Currency:
USD

Features & Tags

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