Newswires
RI-Based Discovery House for Sale, Final Bids Next Week

07/24/2015 -ATIN - Rhode Island-based Discovery House Group, which according to published reports has 18 facilities in Pennsylvania, Maine, Utah and, of course, Rhode Island, will be accepting final bids next week in an sale process that The Deal, a respected publication that follows mergers and acquisitions, said could fetch a sale price of more than $100M based on an EBITDA (cash flow) multiple of 8x-10x the $12M annual cash flow of the Providence-based for-profit.

$36M in Annual Revenues

The Deal reported that Discovery House has annual revenues of approximately $36M and that the auction process is being run by Greene Holcomb & Fisher. The usual suspects like Acadia and UHS were mentioned as potential buyers of Discovery House, though we here at Treatment Magazine are skeptical that the auction will produce prices for Discovery House that reflect such large cash flow multiples, eventhough interest in addictions centers from investors is likely at an all time high.

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