What did AAC Holdings, Inc. pay for AdCare, Inc.?

AAC Holdings, Inc. acquired AdCare, Inc. for $83.9M in 2018 (9.9x EBITDA), equivalent to 1.70x revenue. Target revenue was approximately $51.0M. Target EBITDA was approximately $8.5M.

What does AdCare, Inc. do?

AdCare, Inc. is a mental health business.

What multiple did AAC Holdings, Inc. pay for AdCare, Inc.?

9.9x EBITDA and 1.70x revenue, based on disclosed deal value of $83.9M and disclosed financials.

M&A TRANSACTION · 2018

AdCare, Inc. acquired by AAC Holdings, Inc.

$83.9M· 9.9x EBITDA· 1.70x revenue

Target

AdCare, Inc.

Acquirer

AAC Holdings, Inc.

Strategic buyer

Disclosed financials at time of acquisition

Revenue

$51.0M

EBITDA

$8.5M

Deal Value

$83.9M

EV/EBITDA

9.9x

Context

This $83.9M acquisition of AdCare, Inc. by AAC Holdings, Inc. sits in the mental health sub-vertical. The 9.9x EBITDA multiple paid in 2018 can be compared against the population median for mental health transactions of similar size on our Mental Health valuation hub. AAC Holdings, Inc. is acquiring as a strategic buyer; see how strategic acquirers typically price mental health businesses on our Mental Health strategic buyer-pool page.

Source

Data sourced from Press releases and SEC filings. All figures reflect disclosed values at the time of the acquisition; no estimated or imputed data. Methodology

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Citation: ExitValue.ai. (2018). AdCare, Inc. acquired by AAC Holdings, Inc.. https://exitvalue.ai/deals/adcare-inc-acquired-by-aac-holdings-inc-hc-2018-0177