What your facility is worth, what actually moves the number, and how to prepare years before you go to market — so that diligence confirms your price instead of reopening it.
Enter your adjusted EBITDA, level of care, payer mix, accreditation, and how transferable the operation is. No email required — the calculator runs in your browser.
If you own a drug rehab, detox, residential program, MAT clinic, or a multi-site platform and you are weighing a sale, start with the page written for your situation: Sell Your Rehab Center or Sell a Behavioral Health Facility.
Behavioral health transactions are priced on a multiple of adjusted EBITDA, with the real estate handled separately. The headline multiple gets the attention, but the number that decides your outcome is adjusted EBITDA — earnings normalized for the things a buyer will not pay for. The usual adjustments:
Two facilities with identical revenue can be worth materially different amounts once those adjustments land. That is why we run the exercise before you go to market, not after a letter of intent.
If you own your building, you own two things a buyer may value differently: the operating business, and the real estate. The structure you choose changes price, tax treatment, and your risk after close.
Deciding this during diligence is expensive. Deciding it before you go to market is free.
Diversified commercial, Medicaid, and managed care revenue supports a stronger multiple than concentration in a single payer or in rates that will not survive a buyer's review of authorizations and documentation.
Buyers look at twelve to twenty-four months of utilization, not the trailing quarter. Stable census with a defensible referral pipeline is worth more than a spike.
Capacity that is staffable, in a state where new licenses are difficult to obtain, is one of the most valuable assets a behavioral health operator can hold. We verify what your license actually permits before it becomes a diligence question.
CARF or Joint Commission accreditation, and a clean regulatory history, reduce perceived risk — and perceived risk is what multiples are made of.
Retention of clinical leadership, and whether the program depends on one clinician's personal referral relationships, are the most common causes of a repriced deal.
Billing practices and clinical documentation are diligenced in detail. Issues found late cost money; issues fixed early cost nothing.
Owned, leased, or related-party — and on what terms. Occupancy cost flows straight into the adjusted EBITDA a buyer is underwriting.
Exit planning is not a valuation report you file away. It is a list of things to fix while you still have time to fix them. The work we do with owners ahead of a sale:
That is the first conversation, and it starts with your financials, payer mix, licensure, census trends, and real estate position. We will tell you what we see, including the parts you will not enjoy hearing.
Not always. It depends on the buyer pool, your tax position, and whether you want to remain a landlord. We model the options before you commit to a structure.
Twelve to twenty-four months is the difference between negotiating from strength and negotiating from a deadline. Owners who start early consistently do better than owners who call when they are ready to sign.
Not always, but your financials need to be defensible. Buyers will perform quality of earnings work; the question is whether it confirms your numbers or reopens them.
Then start with the planning, not the process. Knowing what your facility is worth, and what would make it worth more, is useful whether you sell next year or in five.
Where owner-dependence decides the outcome.
Read more →Certification, prescriber dependency, and payer mix.
Read more →Licensed beds, acuity mix, medical staffing, and specialized real estate.
Read more →Confidential representation for owners selling a behavioral health facility, business, or license.
Learn more →Off-market acquisition sourcing and screening for qualified buyers and investors.
Learn more →A sample of completed behavioral health transactions across the continuum of care.
Learn more →To discuss the purchase, sale, or valuation of a behavioral health facility, reach out to Westwood Behavioral Health.
Phone
(516) 262-3848
