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Marketing Consulting Agency Dedicated Recovery Centers For Sale

Denver, Colorado, US
Asking Price:
$850,000
Sales Revenue:
$779,000
Cash Flow:
$431,000

A Full Service Marketing Agency & Consultancy Dedicated To The Success Of Recovery Centers

They offer Marketing and Consulting Services to Drug Rehab Centers. Digital marketing includes: SEO, Paid Search, Display, Blog Management, Marketing Content, Website Creation, and Optimizing Websites

Consulting Services include: Opening a Rehab Center, License Acquisition, Training, Grant Writing, Improving Operations, and Due Diligence

The trailing 12 months Revenues were 779K with 431K in Earnings through February 28, 2022 which shows a 55% profit margin. The 2021 revenues were 621K with 344K in Earnings. They have to sell for personal reasons so while the company is growing quickly again, the sales price is currently 850K. The current sales price is under 2 times the earnings which is very low for a fast-growing, high-margin business that is home-based with no capitalization requirements. The business has accurate financials that have been reviewed recently by a professional bookkeeper. They use QuickBooks.

This business is sometimes misunderstood. The main owner spends 15 to 20 hours a week converting leads from the website to outside consultants who specialize in rehab centers. This is a sales and marketing company. He also converts the leads to long term recuring marketing including websites and SEO. The new owner should have some sales experience and they can teach the rest. The Sellers are confident that they can show the new owner how to continue to grow this business in a significant and predictable way. The business has grown via inbound marketing and will continue to benefit from the powerful lead generation of the website. Their website, ranks for the top search terms in both marketing and “how to start a rehab center. This has generated significant business, and the lack of current outbound marketing creates an opportunity for a new owner to substantially grow the business.

This business did 2.1M in revenue with 678K in profits in 2018, which is where it is heading again after a terrible 2020 because of the loss of trade shows which they are no longer dependent on as of the Spring of 2021. In fact, the business is better positioned now with a lower cost and more diversified source of revenues than before COVID. Plus, in 2020 there was a temporary shutdown of treatment centers due to COVID-19. Now that the addiction rate is at record levels and the Government is paying attention to this, it looks like this will be a fast growth industry for the foreseeable future.

They have created a model that contains dialed in, industry-specific marketing and consulting packages that a new owner can easily learn during the transition with the owners. Their model helps new and existing drug rehabilitation centers open, market, and increase the revenue of their treatment programs, attract the right patients, and build and execute a marketing strategy for long-term success. Their sales process does not involve any outbound calls or door knocking. Instead, potential clients find the agency through its websites, which rank in the top 3 positions in Google.com for every relevant term for addiction marketing and addiction consulting.

The business has two revenue streams: marketing and consulting. For marketing, the Agency sets up and manages marketing for addiction treatment centers in 3 main ways: SEO, paid search (AdWords), and display retargeting. While one owner does most of the strategy (which is teachable), trusted vendor partners perform the actual marketing work. The marketing objective is typically building a treatment center’s online presence, which may include a website audit/update, search engine optimization (SEO), and setting up and managing digital marketing on an ongoing basis. SEO, Paid Search, and display advertising create recurring monthly revenues.

The consulting side of the business primarily focuses on people who seek to open a new treatment facility. All consulting services are performed by contracted industry experts allowing new ownership to easily transition into the consulting business. Consultants guide clients through the process from the start to the day the center opens. Other consulting services offered include Feasibility Study, Pro-Forma, state licensure, staffing, program development, curriculum development, national accreditation, and grant writing. Consulting contracts are billed out monthly to provide high, consistent MRR.

The owners spent 2019 and 2020 restructuring the company's marketing products and developing the website to generate inbound leads for the consulting side of the business. The business was down, as was the industry, in 2020 due to COVID shutting down addiction treatment centers. This created challenges for the business that are visible in 2020 numbers, but it has been a very temporary negative impact on the business. The company is growing fast, especially the consultancy side due to an industry influx of VC and federal funding for opening treatment centers. Owners have focused on growing the consulting side of the business, making it recession-proof and less susceptible than marketing to the negative impact that Covid has had on this industry. In fact, the business is growing quickly again now with better margins than any other time in the last 3 years. The consulting side is easier and less expensive to market and the work is performed by contractors, making it relatively hands-off. In hindsight, although Covid destroyed earnings for over a year, it helped the owners to find a more secure direction for this company.

The price is 850K because they have to sell but it is worth much more for several reasons: Their marketing product offering is proven to work. Their marketing and consulting website is ranked number one, providing lucrative consulting MRR. They have one of the biggest profit margins I have ever seen and are on a steep upward trajectory. They are convinced the new owner will be able to retain and attract clients in the future, and although COVID hurt them badly last year, COVID will also help this company in 2022 and beyond because addiction rates and funding to treat addiction are increasing as a result of COVID.

It is rare to see a company that has had 2.1M in revenues choose to restructure their business model, but by adding the consulting line of revenue, they are now growing again back toward their old numbers. They have had more than one client pay them over 150K/month in the past. This business should be worth a lot more money by 2023. This company has one of the best equity growth potentials with minimal capitalization I have ever seen. This business has a profit margin of 55% since its restructuring. The owners state that it will be very easy to grow it, creating significant future value for the new owner.

This company is well established with a great reputation in the industry. They help their clients with not only opening new centers or adding new lines of revenue for existing centers through consulting but also with increasing lead generation through SEO, paid search and display advertising. Consulting acts as a lead funnel into marketing, with both marketing and consulting generating recurring monthly income. This is the growth opportunity for a new owner as the recently added third consultant opens up more availability to take on new and larger projects.

They have 2 consultants who are experts in the addiction industry with a third currently onboarding. They are able to provide multiple consulting services to new and existing treatment centers. They could also help new owners develop digital consulting products for a passive income source.

The perfect time to buy this company is right now. COVID has led to record rates of addiction and an increase in treatment funding opportunities.

Property Information

Location:

The owners work out of their home.

Business Operation

Expansion Potential:

The owners spent 2019 and 2020 restructuring the company's marketing products and developing the website to generate inbound leads for the consulting side of the business. The business was down, as was the industry, in 2020 due to COVID shutting down addiction treatment centers. This created challenges for the business that are visible in 2020 numbers, but it has been a very temporary negative impact on the business. The company is growing fast, especially the consultancy side due to an industry influx of VC and federal funding for opening treatment centers. Owners have focused on growing the consulting side of the business, making it recession-proof and less susceptible than marketing to the negative impact that Covid has had on this industry. In fact, the business is growing quickly again now with better margins than any other time in the last 3 years. The consulting side is easier and less expensive to market and the work is performed by contractors, making it relatively hands-off. In hindsight, although Covid destroyed earnings for over a year, it helped the owners to find a more secure direction for this company.

Competition / Market:

They have created a model that contains dialed in, industry-specific marketing and consulting packages that a new owner can easily learn during the transition with the owners. Their model helps new and existing drug rehabilitation centers open, market, and increase the revenue of their treatment programs, attract the right patients, and build and execute a marketing strategy for long-term success. Their sales process does not involve any outbound calls or door knocking. Instead, potential clients find the Agency through its websites, which rank in the top 3 positions in Google.com for every relevant term for addiction marketing and addiction consulting.

Reasons for selling:

Personal and health reasons.

Employees:
3
Years established:
7

Other Information

Support & training:

Will support as long as needed

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

10%

Home based:
This business can be run from home.
Relocatable:
This business can be relocated.

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