Project Surrender Inc. (www.projectsurrender.com) is a California corporation and is currently in the process of establishing a California licensed and credentialed intensive outpatient program and a residential treatment program providing substance abuse services and mental health services.
Deaths from heroin and opioids reached epidemic level proportions in 2017, with an average of 117 US citizens dying from an overdose every day. Drug overdoses are now the leading cause of death for people under the age of 50, and deaths related to fentanyl usage alone has increased 540% in three years. As the opioid epidemic continues to explode across the country, the demand for addiction treatment programs will significantly outpace existing capacities. For those wanting to fill this void, there are many opportunities and choices with regard to the type of program, its location, and specialty.
There has been a 1400% increase in new providers since 2017 when Medi-Cal began addiction treatment coverage. Through Nov. 2018 there have been 26 private equity deals in 2018 involving addiction treatment providers totaling $320 million, according to PitchBook, a financial data firm. That compares with 21 deals totaling $66.5 million the year before, and 12 deals totaling $189 million five years ago.
There are over 20 million Americans currently suffering from substance abuse or dependence. Nearly 4,000,000 have been in some kind of treatment program. Of that number, nearly half have relapsed and will more than likely continue to do so. Of those admitted to addiction treatment, well over half of them have previously been in other facilities and nearly a quarter have visited three or more programs.
Most treatment programs are failing this segment of the population. We believe there is hope for these individuals and the answer lies in the modality of treatment developed by leading experts in the industry. We are confident that Southern California will support a specialized program that will accept males, females, and the reentry population. Further, with our network of therapists, interventionists, AOD counselors, social workers, and law enforcement, we expect referrals from all over the county.
Project Surrender is an addiction treatment and mental health corporation offering core recovery services coupled with forensic treatment. Our plan is to open an intensive outpatient program followed by a residential treatment program in year three. These figures are based on drug medical services and does not include HMO payment, private pay and grant funding.
Capital Requirements
Request
To become a force of healing and hope for individuals, families and communities affected by addiction to alcohol and other drugs and to achieve our financial goals, we are seeking an investment of $760,300.00.
Financials
Addiction treatment and recovery is a continuously evolving industry on many levels with tons of financial potential. Our goal is to become a State Certified Intensive Outpatient program in one year and begin accepting Drug Medi-Cal payments in year two. We expect to launch an In-Patient Residential Program soon after.
Regarding the Intensive Outpatient program, with 60 clients we are forecasting $3, 182,000.00 net per year once established and operating with efficient billing, staffing, and controlled expenses.
Regarding the Residential Treatment program, with a 100-bed program, we are forecasting $5,106,006.00 net per year once established and operating at 85% capacity and with efficient billing, staffing, and controlled expenses.
*Does not include revenue for providing services for referrals received from HMO’s, the court drug treatment program, domestic violence, victims of crime, mental health counseling and grants .
Company Valuation
Pre-Money Valuation--$12,522,518
Valuation Tools
- Venture Capital --$11,499,201
- DCF with LTG--$24,977,061
- DCF with Multiples--$43,237127
Ownership Background
Ricardo Rosales – Interim Executive Director/Founder:
As a member of the executive team, Ricardo Rosales is responsible for the overall operation of HomeLight Family Living, a program of The Midnight Mission located in Inglewood. HomeLight Family Living provides the path for families experiencing homelessness due to domestic violence, human trafficking, and those dealing with issues of sobriety an opportunity to reunify, rebuild and restore their lives. The Midnight Mission offers paths to self-sufficiency to men, women and children who have lost direction.
Ricardo was nominated for the 2018 KCET Local Hero Award. This award recognizes activists, educators, community leaders and visionaries – the ones doing the critical work in our region that often goes unrecognized. The project salutes the accomplishments and services of men and women who are making a significant impact in Southern California communities.
In his role as Director, Ricardo spearheaded and chaired the Transitional Housing Action Team (THAT) that brought together over 17 homeless service agencies focused on improving their programs and services.
In 2015, Ricardo was recruited to join the Inglewood City of Champions Revitalization Initiative. The focus of the initiative was to help secure the constituent vote to help bring the Los Angeles Rams and the new SOFI football stadium to Inglewood.
In 2018, Ricardo was recruited to join the Inglewood Forward, a coalition of residents, leaders, business owners, faith-based organizations, activists, strategists and developers who are dedicated to building a bright future for Inglewood, the City of Champions. Inglewood Forward supported the Los Angeles Clippers’ plan to relocate to Inglewood and build their own unique arena.
Ricardo joined the Inglewood Airport Chamber of Commerce Board of Directors in 2016 and has been re-elected 2 times.
Before joining The Midnight Mission, Ricardo was the Program Manager for Safe Haven, a project of OPCC in Santa Monica serving chronically homeless individuals living with co-occurring mental illness and substance abuse disorders. Ricardo also worked on two of the City of Santa Monica’s homeless pilot projects: The Serial Inebriate Program and the Chronic Homeless Program.
Before joining OPCC, Ricardo worked for the County of Los Angeles for 17 years, 12 of which were with the District Attorney’s Office Bureau of Family Support. He was the Supervising Child Support Officer of the Policy, Planning and Training Division.
Ricardo Rosales also worked for the Department of Public Social Service.
Kelly Quintana -- Clinical Director
Kelly Quintana is a Licensed Marriage and Family Therapist (Lic #90279). She has a BA in Psychology from UCSB and a Master's Degree in Clinical Psychology from the Illinois School of Professional Psychology.
Over the last decade Kelly has dedicated herself to improving the mental health and quality of life for underserved and at-risk adults, children and their families. Her passion is working with people impacted by the justice system and those with co-occurring mental health and substance use disorders; fostering healing and self-compassion, supporting their development of new productive ways of thinking and acting and empowering them to manage the additional stressors and challenges that often come as a result of their experiences (ex. trauma, loss of resources, adjustment). She approaches all aspects of her work with a trauma informed and client focused framework and a focus on Mindfulness, Cognitive Behavioral Therapy (CBT), and Motivational Interviewing modalities.
Kelly’s experience includes intensive outpatient and ‘in jail’ individual/family/group therapy, program oversight/supervision for federal, state/city funded programs (AB109, Federal Probation, DHHS) to help previously incarcerated people and their families, curriculum development and training, and clinical supervision.
Brandon Beckman, MBA, CATC
Health & human services senior management executive with 20 years of leading industry expertise. Accomplished in developing and managing high-impact, large-scale treatment & behavioral health programs in community based organizations. Builder of professional teams sharing vision and converting talent into actualized benefits for clients and their communities. Entrepreneurial, lean, forward thinker. Committed to exceptional stewardship, awareness & education, and treating people with dignity and promise with the culture and brand reflecting that across the organization and into the community. Focused on developing competitive edge, high visibility, unique social impact, and greater share of mind.