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 Odyssey Behavioral 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.