Dual Diagnosis Youth Residential Treatment Facility

Asking Price$24,500,000

Cash Flow

EBITDA$3,028,973

Gross Revenue$10,350,517

InventoryNot Disclosed

FF&E$675,000
Included in asking price
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Dual Diagnosis Youth Residential Treatment Facility


Asking Price$24,500,000

Cash Flow

EBITDA$3,028,973

Gross Revenue$10,350,517

InventoryNot Disclosed

FF&E$675,000
Included in asking price
Business Description
A highly profitable, Medicaid-funded residential treatment facility serving boys age 8-21 is being offered for acquisition on a confidential basis. This opportunity represents a rare chance for a qualified buyer to acquire an established behavioral health platform with strong historical revenue growth, meaningful earnings, licensed bed capacity, and significant upside through increased census under new ownership.

The business operates as a structured residential treatment center providing 24-hour care, supervision, education, counseling, recreation, and individualized therapeutic programming in a safe and supportive living environment. The facility serves a vulnerable youth population with behavioral health, emotional, developmental, and dual diagnosis needs, and has developed a strong operating foundation within its market.

The current owner is seeking a transition as part of a retirement-driven exit strategy. Importantly, ownership has intentionally maintained the facility’s census at approximately 42 residents despite being licensed for 60 beds. This operating level reflects the owner’s desire to reduce day-to-day operational intensity and gradually slow down, rather than a limitation of the license or physical capacity. For a qualified buyer with the appropriate staffing, clinical oversight, compliance infrastructure, and growth strategy, the unused licensed capacity provides a compelling opportunity to expand census and increase revenue and earnings.

The business has demonstrated strong financial performance and growth over the past several years. Gross receipts increased from approximately $4.8 million in 2023 to approximately $6.2 million in 2024, with 2025 gross receipts estimated at approximately $7.0 million. Contracts are currently being rewritten, and gross receipts are forecasted to be $10,350,000 in 2027.

The facility is funded primarily through Medicaid. This creates a predictable reimbursement framework, though buyers should conduct their own due diligence regarding reimbursement rates, payer requirements, state program rules, compliance obligations, and any applicable regulatory considerations.


Interested parties should contact the broker to request the buyer prequalification document.
Please note:
* A completed buyer prequalification document is required before an NDA will be provided.
* Submission of a prequalification document does not guarantee access to confidential materials.
* Only qualified and approved buyers will be invited to execute an NDA.
* Buyers must not contact the business, employees, residents, families, referral sources, vendors, payers, licensing agencies, or related parties directly.
* All communication must be directed through the broker.
* Proof of funds, financing support, or evidence of financial capacity may be requested.
* Additional information will be provided only after buyer approval and execution of an NDA.

This is a confidential sale process designed to protect the business, seller, staff, residents, and buyer. Serious, qualified buyers are invited to begin the prequalification process.
About the Business
Years in Operation
26
Employees
52 (47 Full-time, 5 Part-time)
Facilities & Assets
The real estate associated with the business is owned by the current ownership group and is not included in the business sale. The seller intends to enter into a market-rate lease with the buyer at closing, allowing the new owner to continue operating from the existing facilities without interruption.

Lease terms are negotiable and will be finalized as part of the transaction process
Market Outlook / Competition
The market for adolescent residential behavioral health and dual diagnosis treatment remains highly specialized, with competition primarily coming from other licensed residential treatment centers, psychiatric residential treatment facilities, nonprofit behavioral health providers, hospital-affiliated programs, and select community-based treatment alternatives. Demand for youth behavioral health services remains strong, and access to appropriate residential treatment options continues to be limited in many markets. The facility’s established license, operating history, referral base, Medicaid reimbursement structure, and available unused licensed capacity provide a competitive advantage for a qualified buyer seeking immediate scale in the adolescent behavioral health sector.
Opportunities for Growth
Current ownership has intentionally maintained census at approximately 42 residents, despite the facility being licensed for 60 beds. This operating level reflects the owner’s desire to reduce day-to-day demands and gradually slow down ahead of retirement, rather than a limitation in market demand or licensed capacity.

A new owner may have the opportunity to increase census toward the full licensed capacity, subject to staffing, regulatory compliance, referral flow, and operational considerations.
Real Estate
Owned or Leased
Leased
Rent
$15,000.00 per month
About the Sale
Seller Motivation
Retirement
Transition Support
Owner is willing to stay on for a transitionary period to help support and train new management.
Listing Info
ID
2524536
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Business Listed by: Chelsea Abercrombie

Listing ID: 2524536 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.


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