Troubled Youth or Troubled Business? The Hidden Challenges of 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.

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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Thanks to this week’s sponsor:

Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.

If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at chelsea@buythenbuild.com and mention us ;)

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