Troubled Youth or Troubled Business? The Business Behind Running a Treatment Center

In this episode of Acquisitions Anonymous, hosts Bill D’Alessandro and Michael Girdley dive into a unique opportunity: a youth residential treatment facility with a $750,000 cash flow, up for sale at $5.5 million. The conversation explores key challenges, including recruitment difficulties and staff-to-youth ratios that impact the facility’s ability to operate at full capacity. They discuss whether the rural Utah location enhances the value due to outdoor programs or limits it due to labor shortages.

Link to this episode's listing: https://www.bizbuysell.com/Business-Opportunity/established-and-profitable-youth-residential-treatment-facility/2260770/

Key Points Discussed:

- Staffing Challenges: How recruitment issues affect profitability and capacity in residential treatment centers.

- Real Estate Considerations: Whether the $2.7 million in real estate valuation is justified and how owning the property factors into the deal.

- Mission-Driven Work: The pros and cons of running a business that changes lives but can be emotionally taxing.

- Baumol’s Cost Disease: A deeper dive into how rising wages in one sector affect staffing costs in others.

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