Integrative & Functional Medicine Practice, 40-Year California Clinic

$19.5M

Revenue

$4.1M

SDE

4.7x

Multiple

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Full Editorial Writeup

Real Estate Not Included in List Price. Business Price $19.3M, CRE price $18M. Total Combined $37.3M. Targeting Sale of Both.This highly profitable, one-of-a-kind integrative and functional medicine practice is one of the largest and most established platforms of its kind in the United States. Founder-led and operating for more than 40 years, the practice has treated more than 100,000 patients who travel from across the country and around the world for individualized, whole-person, root-cause care. Operating two complementary clinics under one roof from a single, fully built-out campus, the practice's services span integrative oncology and cancer prevention, functional and preventive medicine, women's health, hormone optimization, autoimmune and chronic disease management, human optimization, longevity, and medical aesthetics — all supported by comprehensive in-house diagnostics. The business operates with a deep, multidisciplinary team of physicians and licensed practitioners, along with full front-office and back-office support, and there is no indication of employee departures post-close.The revenue model is exceptionally attractive: predominantly cash-pay with roughly 80% gross margins and no dependence on insurance reimbursement. Revenue is well diversified across integrative cancer services (~37%), a proprietary branded line of supplement and wellness products (~28%) sold through an in-facility retail store and a growing e-commerce channel, general medical services (~20%), and wellness services (~11%). The product line gives the company the rare profile of a medical practice, consumer products business, and e-commerce platform in one, generating recurring revenue and long-term patient engagement. With an enormous active patient base built over three decades, there is no customer concentration risk, and the nationally recognized brand continues to draw new patients without reliance on any single referral source.From an investment perspective, this is a true platform acquisition. Integrative and functional medicine is one of the fastest-growing segments of healthcare, and the space remains highly fragmented. A private equity firm or strategic buyer could acquire this company as the gold standard in the industry and pursue multiple built-in growth levers: recruiting additional physicians into existing unused capacity, expanding the branded product line nationally, launching digital health and telehealth offerings, and adding locations in new geographies — driving both top-line and bottom-line growth as well as EBITDA multiple expansion for a future exit. The founder is open to a 2–3 year employment agreement to ensure a smooth transition, and the owner-occupied real estate housing the practice is also available for purchase, offering the buyer full control of the campus.In 2025 the company generated $18.6M in revenue at a 79.9% gross margin, producing $3.0M in SDE and $2.6M in Adjusted EBITDA. On a three-year weighted-average basis, the business has generated approximately $19.5M in revenue, $4.1M in SDE, and $3.7M in Adjusted EBITDA.For more information, please contact the M&A Advisor brokering the sale, Chris Beckman, by emailing him at cbeckman@tworld.com, or by calling 714-824-4492. All buyers are required to sign an NDA and complete a Buyer Profile before any confidential information is released.

Why we like it

Earnings quality is genuinely strong: cash-pay revenue at roughly 80% gross margins with no insurance reimbursement risk means the collections are clean and predictable. This avoids the working-capital drag and payer-denial headaches that crush most medical practice acquirers.
The moat is real and hard to rebuild: 40 years of operation, over 100,000 patients treated, and a nationally recognized brand that draws new patients without dependence on any single referral source. Reputation and clinical outcomes in integrative oncology are not easily replicated by a new entrant with capital alone.
Market tailwinds are legitimate here rather than hype. Integrative and functional medicine is one of the fastest-growing and most fragmented healthcare segments, and cash-pay wellness demand keeps expanding as patients pay out of pocket for care insurance will not cover.
The revenue mix is a rare hybrid: a medical practice plus a branded supplement line (~28% of revenue) sold through in-facility retail and a growing e-commerce channel. That product line creates recurring, higher-margin revenue and a national scaling path that a pure clinic could never access.

How to improve it

Fill the unused physician capacity first. The campus is already built out and paid for, so recruiting additional physicians and licensed practitioners drops incremental patient revenue against fixed overhead, expanding margin on day one without new real estate spend.
Scale the branded supplement line beyond the four walls. The product line already runs through in-facility retail and a nascent e-commerce channel, so investing in DTC marketing, subscription/autoship models, and Amazon distribution could turn a captive-patient product into a national consumer brand.
Launch telehealth and digital health offerings to monetize the out-of-state and international patient base that already travels to the clinic. Virtual consults, remote monitoring, and follow-up care let you serve the existing 100,000-patient base without them needing to fly in.
Build a repeatable de novo or acquisition playbook to add locations in new geographies. Given the fragmented space, this is the platform lever that drives both top-line growth and multiple expansion at a future exit.
Address founder dependence early by codifying clinical protocols and elevating a physician leader. The 2-3 year founder employment agreement buys time, but the transition plan must transfer brand trust and referral relationships to the team before the founder exits.
Segment and reactivate the enormous dormant patient database with structured recall, wellness memberships, and hormone-optimization subscriptions. A patient base built over three decades almost certainly has thousands of lapsed patients worth re-engaging at low acquisition cost.

Diligence notes

Reconcile the SDE story. Headline is $4.1M on a three-year weighted average, but 2025 alone produced only $3.0M SDE and $2.6M Adjusted EBITDA on lower revenue. Confirm whether the business is declining and, if so, why, because you are effectively paying 6.4x on trailing SDE and roughly 7.4x on 2025 EBITDA.
Understand the real estate decision. The building is not in the $19.3M price and is offered separately at $18M, so verify market rent, lease terms if you do not buy it, and whether that $18M is defensible against comparable CRE. Buying both means committing $37.3M total.
Quantify founder dependence and referral sources. Determine how much of new-patient flow, clinical reputation, and physician recruiting runs through the founder personally, and stress-test whether the brand and patient trust survive a founder transition over the 2-3 year agreement.
Verify the cash-pay and supplement revenue quality. Confirm the ~80% gross margin, examine supplement product COGS and inventory, and review regulatory and labeling compliance on the branded product line given FDA and FTC scrutiny of supplement and wellness claims, especially anything adjacent to cancer.
Scrutinize the integrative oncology segment (~37% of revenue) for medical, legal, and reputational risk. Review malpractice history, any regulatory actions, and how treatment claims are marketed, because this category attracts heightened scrutiny that could threaten the brand under new ownership.

Source

Originally listed on BusinessBroker.net. View original listing →