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Most of the money calling you right now is betting you'll fail.
A note before anything else: if the facility is healthy and the goal is simply a sale, retirement, or a new partner, the short path is the buyout page. This page is for owners under pressure. Census is soft, payroll is Thursday, and the inbox is full of offers. Before signing anything, here is what each one actually costs.
01 — Three doors
What gets offered
The three standard exits, priced honestly.
The merchant cash advance
The wire lands in two days. The debits start the next morning and never stop. One advance breaks your cash flow in exactly the way that makes a second one feel necessary, and the blanket lien that comes with it is why the bank stops returning calls. Some contracts include a confession of judgment, which lets the funder take a judgment against you without a trial.
Typical factor rates of 1.2 to 1.5 work out to effective APRs between 40% and over 300%. Stacked positions commonly take 30 to 60 percent of gross revenue.
The fire sale
A distressed program trades near three or four times a depressed EBITDA. A stabilized one can command nine to twelve. Sell at the bottom and your worst year sets the price on everything you built, while the buyer keeps the recovery.
The slow bleed
The quiet option feels responsible. It isn't. Every visible cut tells your referral sources and your best clinicians to start looking, and census follows them out the door. Facilities rarely die of one wound. They die of eighteen months of small ones.
02 — The fourth door
What we offer instead
We structure the deal around what you need.
For owners who are finished, a full buyout: debts settled at closing and a number that holds up in front of an accountant. For owners who are not, a recapitalization that rolls equity into the recovery. Staged exits, seller notes, and real estate handled separately are all workable. Two things are constant in every structure: the debt gets settled, and operators take the building. The structures in detail.
The economics are stated plainly: distressed facilities sell at distressed prices. What an owner gets in return is a process that can be verified and, with rolled equity, a partner who loses money if the turnaround fails. None of the funders debiting the account each morning can say the same.
03 — Fair questions
Asked by every serious owner
Fair questions, straight answers.
Why sell equity instead of borrowing?+
Because debt on a struggling facility is a countdown. A stacked advance can take a third to half of gross revenue in daily debits and leaves every operational problem exactly where it was. Equity is the opposite trade. The money goes in and stays in, nothing debits your account, and we only profit if the facility becomes worth more, which requires your share to grow too.
Am I selling my company?+
As much or as little of it as the deal calls for. Full buyout, controlling stake with your equity rolled into the recovery, staged exit over time. The structure gets built around your goals and the facility's needs, and what you keep is defined in writing before you commit to anything. In any structure where we invest, we run day-to-day operations, because turnarounds fail without one hand on the wheel, but decisions that change what you own are made together and written into the agreement.
What if I just want out?+
Then we buy it outright, and no partnership is required. You get a price built from your own records, debts settled at closing, and a change of ownership filed so the license and payer contracts carry over. A real exit, from a buyer who plans to run the place.
What kinds of facilities do you buy?+
Addiction treatment from detox through outpatient, residential mental health, and psychiatric hospitals and units. Licensed is the requirement. Struggling is not.
My facility isn't struggling. Will you still buy it?+
Yes, and gladly. Retirement, succession, a partner who wants out, or simple readiness are all reasons owners sell us healthy facilities. The deal is simpler, the diligence is faster, and the price reflects a business that works.
How much do I keep if I roll equity?+
That depends on how much capital goes in, how much debt gets cleared, and how far the facility is from stable. The split is stated in the written proposal before you commit to anything, and it is real equity, not a promise.
What happens to my existing advances?+
They end at closing. Retired or settled, liens released, debits stopped. It is usually the single fastest improvement to the facility's cash flow.
What about licensure and change of ownership?+
Any ownership change at a licensed facility triggers state filings, payer re-enrollment, and accreditor notice, each on its own clock. We sequence the deal around those clocks so nothing lapses. When the owner stays on, regulators and referral sources see continuity, which helps everyone.
How is this different from private equity?+
Our diligence team runs facilities for a living. Our capital is committed at signing, not raised afterward, so no fund clock forces an exit on someone else's schedule. And when an owner rolls equity, that is the deal itself, not a transition clause in someone else's.
How confidential is this process?+
An NDA is available before anything sensitive moves, ours or yours. Your situation is never shopped, your staff are never contacted, and referral sources are never approached without your explicit go-ahead.