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
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