Integrative & Functional Medicine Practice, 40-Year California Clinic

$19.5M

Revenue

$4.1M

SDE

4.7x

Multiple

Subscribe Free

Read the full deal writeup

Get Free Access

Already a member? Sign in

Full Editorial Writeup

This is a 40-year-old integrative and functional medicine practice in California, one of the largest and most established platforms of its kind in the country. Operating two complementary clinics under one roof from a single built-out campus, it serves integrative oncology and cancer prevention, functional and preventive medicine, women's health, hormone optimization, autoimmune and chronic disease management, longevity, and medical aesthetics, all backed by in-house diagnostics. The practice has treated over 100,000 patients over three decades, many traveling from across the country and internationally for root-cause care.

The economics are the standout feature. Revenue is predominantly cash-pay at roughly 80% gross margins with zero insurance reimbursement dependence, and it is well diversified: integrative cancer services (~37%), a proprietary branded supplement and wellness product line (~28%) sold in-facility and via e-commerce, general medical services (~20%), and wellness services (~11%). That mix gives the company an unusual triple profile of medical practice, consumer products brand, and e-commerce channel, generating recurring revenue and durable patient engagement without customer concentration.

On a three-year weighted-average basis the business produced roughly $19.5M in revenue, $4.1M in SDE, and $3.7M in Adjusted EBITDA. Note the 2025 figures are softer at $18.6M revenue, $3.0M SDE, and $2.6M Adjusted EBITDA, so the headline SDE is a smoothed average, not a current run rate. The business is priced at $19.3M with the owner-occupied real estate offered separately at $18M for a combined $37.3M.

Why we like it

Earnings quality is genuinely strong: cash-pay revenue at roughly 80% gross margins with no insurance reimbursement risk means the collections are clean and predictable. This avoids the working-capital drag and payer-denial headaches that crush most medical practice acquirers.
The moat is real and hard to rebuild: 40 years of operation, over 100,000 patients treated, and a nationally recognized brand that draws new patients without dependence on any single referral source. Reputation and clinical outcomes in integrative oncology are not easily replicated by a new entrant with capital alone.
Market tailwinds are legitimate here rather than hype. Integrative and functional medicine is one of the fastest-growing and most fragmented healthcare segments, and cash-pay wellness demand keeps expanding as patients pay out of pocket for care insurance will not cover.
The revenue mix is a rare hybrid: a medical practice plus a branded supplement line (~28% of revenue) sold through in-facility retail and a growing e-commerce channel. That product line creates recurring, higher-margin revenue and a national scaling path that a pure clinic could never access.

How to improve it

Fill the unused physician capacity first. The campus is already built out and paid for, so recruiting additional physicians and licensed practitioners drops incremental patient revenue against fixed overhead, expanding margin on day one without new real estate spend.
Scale the branded supplement line beyond the four walls. The product line already runs through in-facility retail and a nascent e-commerce channel, so investing in DTC marketing, subscription/autoship models, and Amazon distribution could turn a captive-patient product into a national consumer brand.
Launch telehealth and digital health offerings to monetize the out-of-state and international patient base that already travels to the clinic. Virtual consults, remote monitoring, and follow-up care let you serve the existing 100,000-patient base without them needing to fly in.
Build a repeatable de novo or acquisition playbook to add locations in new geographies. Given the fragmented space, this is the platform lever that drives both top-line growth and multiple expansion at a future exit.
Address founder dependence early by codifying clinical protocols and elevating a physician leader. The 2-3 year founder employment agreement buys time, but the transition plan must transfer brand trust and referral relationships to the team before the founder exits.
Segment and reactivate the enormous dormant patient database with structured recall, wellness memberships, and hormone-optimization subscriptions. A patient base built over three decades almost certainly has thousands of lapsed patients worth re-engaging at low acquisition cost.

Diligence notes

Reconcile the SDE story. Headline is $4.1M on a three-year weighted average, but 2025 alone produced only $3.0M SDE and $2.6M Adjusted EBITDA on lower revenue. Confirm whether the business is declining and, if so, why, because you are effectively paying 6.4x on trailing SDE and roughly 7.4x on 2025 EBITDA.
Understand the real estate decision. The building is not in the $19.3M price and is offered separately at $18M, so verify market rent, lease terms if you do not buy it, and whether that $18M is defensible against comparable CRE. Buying both means committing $37.3M total.
Quantify founder dependence and referral sources. Determine how much of new-patient flow, clinical reputation, and physician recruiting runs through the founder personally, and stress-test whether the brand and patient trust survive a founder transition over the 2-3 year agreement.
Verify the cash-pay and supplement revenue quality. Confirm the ~80% gross margin, examine supplement product COGS and inventory, and review regulatory and labeling compliance on the branded product line given FDA and FTC scrutiny of supplement and wellness claims, especially anything adjacent to cancer.
Scrutinize the integrative oncology segment (~37% of revenue) for medical, legal, and reputational risk. Review malpractice history, any regulatory actions, and how treatment claims are marketed, because this category attracts heightened scrutiny that could threaten the brand under new ownership.

Source

Originally listed on BizBuySell. View original listing →