Case Study: Magnolia Creek Treatment Center for Women

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Deal Synopsis

Overview

  • Global Healthcare Advisors (“GHA”) was retained by Odyssey Behavioral Healthcare to source partnerships within the behavioral health space

About Triumph Healthcare

  • Odyssey is a group of mental health facilities offering long-term treatment to achieve habitual health and independence
  • The company provides sustainable solutions, socially integrated platforms, and long-term care options at luxurious care facilities

About Magnolia Creek

  • Magnolia Creek is a dually-licensed eating disorder and mental health treatment center that structures evidence-based treatment programs for mental health conditions such as mood, obsessive compulsive, post-traumatic stress, attachment, and personality disorders

Our Role

Strategy

  • GHA played a key role in sourcing partnership prospects through proprietary channels to create a “win-win” scenario for our client and prospect

Execution

  • We distinguished Magnolia Creek as a well-respected, fast growing, and profitable business within Odyssey’s core markets
  • GHA was able to smooth out transaction terms, pricing negotiations, and incentivize employees by initiating an earnout strategy and stay-on bonus structure for employees and management

Value Creation

Transaction Outcomes

  • We were able to successfully close the transaction and create a new cross-referrals platform for alcohol abuse and mental health patients
  • Magnolia Creek’s team felt that they were professionally prepared for negotiations, joint meetings, and practice integration
  • Magnolia’s CEO continued to serve after the acquisition  and Tom Whiteman, who previously served as Executive Director, remained as a consultant for a year after closing
  • Odyssey was able to provide a strategy for Magnolia to expand its in-network offerings, strengthen back-office operations, and execute marketing for new therapists, physicians, and community engagement
  • Odyssey now has five different locations and offers treatment for eating disorders, primary mental health, substance abuse disorders, personality disorders, and psychosis

Magnolia never considered a partnership with another group before. GHA was instrumental in getting the deal done and coaching our team through the obstacles and hardships associated with negotiations and corporate integration.

Tom WhitemanMagnolia Creek