Convalo Investment Proposition
Convalo operates in the highly fragmented and fast growing US addiction rehabilitation market. The fast growth of the industry was triggered by the recent regulations in the US, including ObamaCare and the Parity Act, that require private health insurance companies to treat many mental health disorders on parity with physical disorders. Convalo plans to continue to consolidate specific sectors of the addiction treatment market in major cities across the US. Many of these companies are currently owned or managed by individual therapists who try to run them as an adjunct to their private practice, with limited marketing efforts. The first acquisition of a center located in Hollywood, California, is open and serving patients for the treatment of addictive and co-occurring disorders under the brand name BLVD Centers. Within the 6 months following the acquisition, BLVD’s revenue increased by over 200%. Other potential acquisition targets in Los Angeles or other cities may cater to other specific market segments, or to the general outpatient market, depending upon demand and market opportunities.