Business Transactions

Buy-Side
Sell-Side
Valuations

Buy-Side

BHTA supports investors and operators pursuing acquisitions of behavioral health businesses:

Sell-Side

BHTA guides behavioral health operators through the sale of their business:

Preparing a Business for Sale
Click to expand
+
1. Know the end goal
  • The number needed
  • Desired post-close role
  • Any non-negotiables
2. Understand the valuation drivers
  • Payer mix
  • Licensure and accreditation
  • Bed utilization and level-of-care continuum
  • Staffing model and real estate structure
  • How consistently patient outcomes are tracked and reported
3. Fix what buyers will re-price
Financial readiness
  • Accrual-basis financial statements with footnotes — audited or reviewed if possible, or at minimum a Quality of Earnings (QoE) report prepared before going to market
  • Third-party contractors relied upon (billing, coding, staffing agencies, etc.)
Revenue and referral health
  • Revenue cycle: A/R aging, denial rates, clean claim rate
  • Referral concentration
Compliance and risk
  • Licensure and credentialing across every site
  • Documentation and compliance records
  • Mitigating current or past litigation and payor audits
Real estate
  • Assignable lease terms, or clean ownership
  • Deciding upfront whether to sell the real estate as part of the deal, or retain ownership and lease it back to the new owner
4. Know who's buying
  • Private equity platforms — want scale and a repeatable operating model
  • Strategic operators and health systems — value mission fit and geographic complementarity
  • Family offices — often prefer to own the real estate outright, for flexibility on a future exit and the ability to finance the business and real estate together
5. Control confidentiality
  • Staged disclosure — high-level details first, financials only after NDA and buyer qualification
6. Start early
  • If a sale is even possible in the next 12–24 months, preparation should begin now
Initial Due Diligence Request to Send to BHTA
Coming soon

Valuations

Buy-Side

BHTA supports investors and operators pursuing acquisitions of behavioral health businesses:

Valuation is largely a multiple on EBITDA — but it's also as much art as science. Different buyers place value on different intangibles:

Sell-Side

BHTA guides behavioral health operators through the sale of their business:

Preparing a Business for Sale
Click to expand
+
1. Know the end goal
  • The number needed
  • Desired post-close role
  • Any non-negotiables
2. Understand the valuation drivers
  • Payer mix
  • Licensure and accreditation
  • Bed utilization and level-of-care continuum
  • Staffing model and real estate structure
  • How consistently patient outcomes are tracked and reported
3. Fix what buyers will re-price
Financial readiness
  • Accrual-basis financial statements with footnotes — audited or reviewed if possible, or at minimum a Quality of Earnings (QoE) report prepared before going to market
  • Third-party contractors relied upon (billing, coding, staffing agencies, etc.)
Revenue and referral health
  • Revenue cycle: A/R aging, denial rates, clean claim rate
  • Referral concentration
Compliance and risk
  • Licensure and credentialing across every site
  • Documentation and compliance records
  • Mitigating current or past litigation and payor audits
Real estate
  • Assignable lease terms, or clean ownership
  • Deciding upfront whether to sell the real estate as part of the deal, or retain ownership and lease it back to the new owner
4. Know who's buying
  • Private equity platforms — want scale and a repeatable operating model
  • Strategic operators and health systems — value mission fit and geographic complementarity
  • Family offices — often prefer to own the real estate outright, for flexibility on a future exit and the ability to finance the business and real estate together
5. Control confidentiality
  • Staged disclosure — high-level details first, financials only after NDA and buyer qualification
6. Start early
  • If a sale is even possible in the next 12–24 months, preparation should begin now

Valuations

BHTA provides independent advisory for operators evaluating a future sale, considering a recapitalization, or needing an objective read on their business's market position and value:

Buy-Side
Sell-Side
Valuations

Business Transactions

Buy-Side

We support investors and operators pursuing acquisitions of behavioral health businesses:

Valuation is largely a multiple on EBITDA — but it's also as much art as science. Different buyers place value on different intangibles:

Sell-Side

We guide behavioral health operators through the sale of their business:

Preparing Your Business for Sale
Click to expand
+
1. Know your end goal
  • The number you need
  • Your desired post-close role
  • Any non-negotiables
2. Understand your valuation drivers
  • Payer mix
  • Licensure and accreditation
  • Bed utilization and level-of-care continuum
  • Staffing model and real estate structure
  • How consistently you track and report patient outcomes
3. Fix what buyers will re-price
Financial readiness
  • Accrual-basis financial statements with footnotes — audited or reviewed if possible, or at minimum a Quality of Earnings (QoE) report prepared on your own before going to market
  • Third-party contractors you rely on (billing, coding, staffing agencies, etc.)
Revenue and referral health
  • Revenue cycle: A/R aging, denial rates, clean claim rate
  • Referral concentration
Compliance and risk
  • Licensure and credentialing across every site
  • Documentation and compliance records
  • Mitigate current or past litigation and payor audits
Real estate
  • Assignable lease terms, or clean ownership
  • Decide upfront whether you're selling the real estate as part of the deal, or retaining ownership and leasing it back to the new owner
4. Know who's buying
  • Private equity platforms — want scale and a repeatable operating model
  • Strategic operators and health systems — value mission fit and geographic complementarity
  • Family offices — often prefer to own the real estate outright, giving them flexibility on a future exit and the ability to finance the business and the real estate together as one investment
5. Control confidentiality
  • Staged disclosure — high-level details first, financials only after NDA and buyer qualification
6. Start early
  • If a sale is even possible in the next 12–24 months, begin preparing now

Valuations

Independent advisory for operators evaluating a future sale, considering a recapitalization, or needing an objective read on their business's market position and value:

Business Transactions

Buy-Side

We support investors and operators pursuing acquisitions of behavioral health businesses — sourcing opportunities, evaluating targets, and managing the process through close.

Sell-Side

We guide behavioral health operators through the sale of their business — preparing the opportunity, identifying the right buyer pool (strategic, private equity, or family office), and negotiating terms that protect your outcome.

Valuations

Independent advisory for operators evaluating a future sale, considering a recapitalization, or needing an objective read on their business's market position and value.

Sell-Side — Preparing for Sale
Preparing Your Business for Sale
Sell-Side — click to expand
+
1. Know your end goal

The number you need, your desired post-close role, and any non-negotiables.

2. Understand your valuation drivers

Valuation is largely a multiple on EBITDA, but that multiple is shaped by payer mix, licensure and accreditation, bed utilization, level-of-care continuum, staffing model, real estate structure, and how consistently you track and report patient outcomes. Different buyer types weigh these variables differently — valuation is as much art as science in how a sale is actually executed.

3. Fix what buyers will re-price
Financial readiness
  • Financial statements on an accrual basis, with footnotes — audited or reviewed if possible, or at minimum a Quality of Earnings (QoE) report prepared on your own before going to market
  • Third-party contractors you rely on (billing, coding, staffing agencies, etc.)
Revenue and referral health
  • Revenue cycle: A/R aging, denial rates, clean claim rate
  • Referral concentration
Compliance and risk
  • Licensure and credentialing across every site
  • Documentation and compliance records
  • Mitigate current or past litigation and payor audits
Real estate
  • Assignable lease terms, or clean ownership
  • Decide upfront whether you're selling the real estate as part of the deal, or retaining ownership and leasing it back to the new owner — this affects deal structure, valuation, and the buyer pool you'll attract
4. Know who's buying
  • Private equity platforms — want scale and a repeatable operating model
  • Strategic operators and health systems — value mission fit and geographic complementarity
  • Family offices — often prefer to own the real estate outright, giving them flexibility on a future exit and the ability to finance the business and the real estate together as one investment
5. Control confidentiality

Staged disclosure — high-level details first, financials only after NDA and buyer qualification.

6. Start early

If a sale is even possible in the next 12–24 months, begin preparing now.

Preparing Your Business for Sale

1. Know your end goal

The number you need, your desired post-close role, and any non-negotiables.

2. Understand your valuation drivers

Valuation is largely a multiple on EBITDA, but that multiple is shaped by payer mix, licensure and accreditation, bed utilization, level-of-care continuum, staffing model, real estate structure, and how consistently you track and report patient outcomes. Different buyer types weigh these variables differently — valuation is as much art as science in how a sale is actually executed.

3. Fix what buyers will re-price
Financial readiness
  • Financial statements on an accrual basis, with footnotes — audited or reviewed if possible, or at minimum a Quality of Earnings (QoE) report prepared on your own before going to market
  • Third-party contractors you rely on (billing, coding, staffing agencies, etc.)
Revenue and referral health
  • Revenue cycle: A/R aging, denial rates, clean claim rate
  • Referral concentration
Compliance and risk
  • Licensure and credentialing across every site
  • Documentation and compliance records
  • Mitigate current or past litigation and payor audits
Real estate
  • Assignable lease terms, or clean ownership
  • Decide upfront whether you're selling the real estate as part of the deal, or retaining ownership and leasing it back to the new owner — this affects deal structure, valuation, and the buyer pool you'll attract
4. Know who's buying
  • Private equity platforms — want scale and a repeatable operating model
  • Strategic operators and health systems — value mission fit and geographic complementarity
  • Family offices — often prefer to own the real estate outright, giving them flexibility on a future exit and the ability to finance the business and the real estate together as one investment
5. Control confidentiality

Staged disclosure — high-level details first, financials only after NDA and buyer qualification.

6. Start early

If a sale is even possible in the next 12–24 months, begin preparing now.