Behavioral Health Therapy Practice, Turnkey Oregon Provider Since 2015

$2.1M

Revenue

$518K

SDE

3.6x

Multiple

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Full Editorial Writeup

This is an Oregon-based behavioral health therapy practice founded in 2015, generating roughly $2.09M in annual revenue and $518K in seller discretionary earnings. The practice runs on an experienced 14-person clinical team, a loyal referral network, and a diverse payer mix, with recurring patient demand that produces predictable, annuity-like revenue. The current owner manages the business remotely, which is a meaningful signal that the operation is systematized and not dependent on a single practitioner grinding in a chair.

Behavioral health is one of the more durable corners of healthcare. Demand for mental health services has structurally increased, insurance coverage for behavioral care has expanded, and the referral-driven model creates steady inbound patient flow that does not evaporate in a downturn. The practice serves patients across Oregon and has clear runway to grow both in-state and beyond.

The seller is retiring and willing to stay on as a consultant, which de-risks the transition for a buyer without behavioral health licensure who plans to install or retain a clinical director. At 3.62x SDE, the price sits in a reasonable band for a services healthcare business of this size, though the buyer must underwrite the payer mix, provider retention, and how much of the SDE reflects genuinely absentee cash flow versus an owner add-back.

Why we like it

Earnings quality is strong for a services business: $518K SDE on $2.09M revenue is a roughly 25% margin, and the revenue is recurring, referral-driven, and spread across a diverse payer mix. That diversification reduces the risk that losing one referral source or payer contract craters the business.
The moat is the clinical team and referral network, not the owner. With 14 employees and an established reputation, the practice has switching-cost stickiness through ongoing patient relationships and a reputation that took a decade to build since 2015. A new entrant cannot replicate a loyal Oregon referral base overnight.
Behavioral health rides a genuine secular tailwind. Demand for mental health services has grown structurally, insurance parity has expanded coverage, and this is care people do not cut in a recession. That makes the cash flow both recession-resistant and positioned for organic volume growth.
The owner already runs it remotely, which is a rare and valuable proof point that the business is systematized and manager-run. A strategic buyer or investor group can bolt this onto an existing platform or install a clinical director without needing to be a licensed therapist themselves.

How to improve it

Audit the payer mix and renegotiate reimbursement rates within the first 90 days. Behavioral health practices often leave money on the table with stale commercial contracts, and even a few points of rate improvement flows straight to the bottom line given the fixed cost base.
Increase provider capacity by recruiting additional clinicians to fill existing referral demand. The listing explicitly cites unmet demand and referral network expansion as growth levers, so adding productive providers is the fastest path to revenue growth without new marketing spend.
Expand telehealth delivery across and beyond Oregon. The owner already manages remotely, so the infrastructure for virtual care likely exists, and telehealth lets the practice grow its service area without adding physical footprint or lease costs.
Add higher levels of care such as intensive outpatient programs. The listing names this as a growth path, and higher-acuity services carry higher reimbursement per patient, improving revenue per clinician and deepening the referral relationship.
Install a formal clinical director and management layer to replace owner oversight cleanly. Even though the practice runs remotely today, a buyer needs an accountable operator on the ground to protect against provider churn and maintain referral relationships post-close.
Build a structured referral-development function to systematically add new referring providers. Right now the referral network appears organic and reputation-driven, and dedicating someone to cultivating new sources would compound patient volume predictably.
Tighten scheduling and no-show management to lift clinician utilization. In therapy practices, no-shows are a direct margin leak, and even modest improvements in fill rates on existing capacity boost SDE with zero incremental headcount.

Diligence notes

Scrutinize the SDE bridge carefully, especially the owner add-back. The owner manages remotely, so confirm whether the reported SDE already reflects the cost of a management layer or whether a buyer must hire one, which would reduce true normalized cash flow.
Analyze payer mix concentration and reimbursement trends. Behavioral health depends heavily on commercial and government payers, so verify contract terms, denial rates, and any pending rate changes that could compress margins after close.
Assess clinician retention and employment terms for the 14-person team. The team is the asset, so review compensation, non-competes, tenure, and licensure status, and gauge flight risk once the founding owner exits.
Confirm licensure and regulatory transfer requirements in Oregon. A non-clinical buyer may need a licensed clinical director or specific corporate practice-of-medicine structuring, so map the legal path to ownership before committing.
Verify the durability of the referral network and whether it is personal to the retiring owner. If referrals flow because of the owner's individual relationships rather than the practice brand, that is a material risk that needs mitigation through the transition period.

Source

Originally listed on BizBuySell. View original listing →