Investor Call: Dual-Market Behavioral Health Platform | 35% EBITDA Margin | Established CON-Protected Asset

Project Mana: a dual-facility, with a CON-protected asset, behavioral health platform in premium Pacific Region markets with exceptional clinical outcomes, strong cash flow, and immediate growth runway. THE OPPORTUNITY This is an established, cash-flowing acquisition of two best-in-class residential detoxification and rehabilitation facilities. The combined platform generated $4.6M in revenue in 2025 with adjusted EBITDA of $1.6M (35% margin)—significantly above the industry average of 20–25%. Both facilities are licensed, state-regulated, and serve a diversified insurance payer base (no Medicare/Medicaid dependency). Together, they represent a rare sub-$10M dual-facility platform opportunity in two high-barrier, premium markets. CLINICAL EXCELLENCE — THE DIFFERENTIATOR What distinguishes this platform is clinical excellence. Both facilities maintain a >90% treatment completion rate—best-in-class by industry standards. This operational superiority directly translates to (1) higher insurance reimbursement rates, (2) reduced patient attrition, and (3) predictable recurring revenue. Clinical quality is often an overlooked value driver in behavioral health acquisitions, but it's the foundation of this deal's economics. INVESTMENT STRUCTURES OPTION A — Full Platform (OpCo + PropCo) [PREFERRED]: $775K–$825K equity commitment to acquire both operating companies AND the underlying $4.85M in real estate assets. Dual debt stack: SBA 7(a) for OpCo + Commercial (Pari Passu) for PropCo. Consolidated DSCR >1.60x. Real estate equity upside significant and orthogonal to operational risk. This structure is architecturally superior because it (1) diversifies returns across OpCo cash flow and PropCo appreciation, (2) provides downside protection via real estate collateral, and (3) attracts sophisticated healthcare investors familiar with RE-backed platforms. Target returns: 21–26% IRR / 3.0x–4.5x MOIC. OPTION B — OpCo Only (Business Acquisition): $380K–$420K equity commitment to acquire the operating companies on an SBA 7(a) platform. Projected DSCR >1.5x. Target returns: 20–26% IRR / 2.9x–4.5x MOIC. MARKET OPPORTUNITY Behavioral health is consolidating. Healthcare accounts for 35% of recent search fund acquisitions, and SUD treatment specifically is experiencing accelerated demand post-opioid crisis. PE penetration in behavioral health stands at 6–7% nationally, indicating significant fragmentation and consolidation runway. These two facilities are owned independently; they're not portfolio companies. Acquiring and operating them as a unified platform with professional management structure immediately unlocks value. FINANCIAL MECHANICS & RETURNS Under the preferred bifurcated structure: - Entry Valuation: $9.3M ($4.45M OpCo + $4.85M PropCo) - Debt Financing: ~$8.2M (SBA 7(a) + Commercial Pari Passu) - Total Equity Required: $775K–$825K - Projected Returns (7-Year Hold): >25% IRR / >3x MOIC - Model Assumptions: Conservative 3% CAGR revenue growth, no margin expansion, standard 5.5x exit multiple These returns substantially exceed lower-middle-market healthcare benchmarks (typical: 12–18% IRR / 2.5–3.5x MOIC) and are supported by conservative underwriting, not aggressive assumptions. DEAL STATUS & TIMELINE LOI executed February 18, 2026 under exclusive due diligence period through April 4, 2026. Comprehensive due diligence underway (financial, regulatory, operational, clinical, real estate). SBA lender has signaled preliminary interest. Target close May###-###-#### Seller is transitioning out and highly motivated. Both facilities have clean compliance records, valid state licenses, and stable patient rosters. INVESTOR PROFILE & TERMS Seeking healthcare or behavioral health-experienced investors comfortable with equity participation (common + preferred), familiar with OpCo/PropCo structures, and aligned on a long-term operating horizon. Standard search fund terms apply: preferred return (negotiable), step-up multiple, observer rights + monthly financials. Non-exclusive offering; actively fundraising in parallel with due diligence. The Cornell Johnson MBA network (Go Big Red) and Military Veteran Investment communities (Retired USAF Pilot) are encouraged to inquire!