The ABA therapy and autism space is seeing robust M&A activity and high market demand as business owners partner with private equity firms who are conducting roll-up strategies. Valuations continue to increase, with many mid-sized practices achieving double digit multiples.
While the market is hot and autism clinic owners are seeing plenty of demand, a minority investor may be a better approach rather than a 100% outright sale. By selling a 100% stake in you may lose out on potential upside and long-term value creation. A business that generates $6 million of revenue and $1 million of EBITDA (earnings before interest, tax, depreciation, and amortization) will generate a lower valuation than a business that achieves $10-15 million of revenue and $3-4 million of EBITDA. At RiverStone, we help family and founder-owned autism businesses grow their practice organically, advise on strategic initiatives, and help owners scale their company to a point where the valuation is more attractive and makes sense to transact.
Minority investors allow for you to take some chips off of the table while capitalizing on rich valuations in the space. But finding a minority investor also allows for you to continue to maintain control of your own business, grow it in the way you wish, while having access to capital. A minority investor can help you enhance your IT systems and infrastructure, add valuable employees to bolster your management team or sales / corporate development function, and potentially acquire smaller add-on acquisitions and scale the company inorganically.
At RiverStone Reporting we can help you:
- Find the right minority investor
- Develop a robust investor pitch deck
- Evaluate your company's P&L and find one-time addbacks and pro forma adjustments to ensure you achieve a maximum valuation
- Create financial projections to show the potential your company has over the next 3-5 years in a growing end market
- Provide industry expertise on how to best position your business
Reach out to our RiverStone Reporting team today at info@riverstonereporting.com to learn more about our services and how we can help. We have experience and expertise in the ABA therapy and autism space. We are not just an autism brokerage firm, but a thought partner, ensuring clinicians and business owners make the right decisions and find the right partners to achieve long-term success.
Comments