Addiction Treatment Business — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
4×
Typical
6×
Max
8×
Revenue Model
Recurring
Capital Intensity
Medium
A typical multiple of 6× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Addiction treatment and rehabilitation businesses typically trade at 4×–8× EBITDA. NHS sub-contract income, private self-pay residential treatment, and strong CQC inspection ratings support premium valuations. Growing public health demand and consolidator appetite in the sector have kept multiples elevated. Regulatory inspection risk and clinical governance obligations are the primary risk factors for buyers.
Key Value Drivers
- NHS sub-contract and private pay income
- Strong CQC inspection rating
- Residential treatment capacity
- Aftercare and community support services
- Medical detox and clinical capability
Key Risks
- CQC regulatory inspection risk
- Clinical governance and safeguarding
- Staff recruitment and retention
- Reputational sensitivity
- Commissioner contract renewal
Related Industries
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.