Investor Call: 35% EBITDA Margin | Dual-Market Behavioral Health Platform | Pacific Region

**UPDATED** Project Mana: an established 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. INVESTMENT STRUCTURES Step-Up: 2x (indicative) Ownership (post step-up): ~16% Preferred Return: 12% annually Exit Timeline: 5–7 year investor exit MOIC: ~3.5x capital deployed (5–7 year investor exit) Expected IRR: ~32% (5–7 year investor exit scenario) OPTION A — Full Platform (OpCo + PropCo) [PREFERRED]: ~$775K 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. Benefits: diversifies returns across OpCo cash flow and PropCo appreciation, and provides downside protection via real estate collateral. OPTION B — OpCo Only (Business Acquisition): $380K–$420K equity commitment to acquire the operating companies on an SBA 7(a) platform. Projected DSCR >1.6x. 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 consolidated structure: - Entry Valuation: $9.3M ($4.45M OpCo + $4.85M PropCo) - Debt Financing: ~$8.2M (SBA 7(a) + Commercial Pari Passu) 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. Comprehensive due diligence underway (financial, regulatory, operational, clinical, real estate). 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. The Cornell Johnson MBA network (Go Big Red) and Military Veteran Investment communities (Retired USAF Pilot) are encouraged to inquire!