M&A activity in the autism treatment industry appears to be picking up.
On July 22, private equity-backed ABA Connect announced that it acquired ABA Therapy of Houston, bumping its footprint to 12 facilities across Texas and Colorado. Then, on July 24, Behavioral Framework announced it acquired Behavior Consultation & Psychological Services (BCPS).
Together, the transactions support the notion that – after a brief lull – autism dealmaking is on the upswing.
Behavioral Framework is a family-owned provider of ABA therapy that operates in Maryland, Virginia and Washington, D.C. The organization is led by co-founders Angela West and Kyle West, who serve as chief clinical officer and CEO, respectively.
BCPS provides clinic, home and school-based ABA therapy and autism diagnostic services for children in North Carolina.
“BCPS is a leader in delivering clinically excellent therapy in North Carolina, and we are excited to partner with them as we continue to increase access to exceptional care,” Kyle West said in a press release. “I’m incredibly impressed with what BCPS has accomplished and excited by what it will contribute to the combined company’s continued growth and reach.”
Following the transaction, Behavioral Framework and BCPS will now serve more than 1,000 families across Maryland, Virginia, North Carolina and D.C. Strategically, the deal gives Behavioral Framework expanded reach and services for its clients, in addition to more resources, training and support for clinicians.
Jason Cone, the founder of BCPS, will continue to lead clinical operations in North Carolina moving forward.
“The partnership with Behavioral Framework enhances our mission and accelerates our ability to serve clients and families in need,” Cone said in the release.
Transactions for autism- and ABA-focused businesses fell in 2023 compared to previous years, according to data from M&A advisory firm The Braff Group. The dip was partly linked to the macroeconomic environment, as M&A activity across the board was down last year.
But multiple high-profile stumbles from some of the industry’s biggest names threw cold water on M&A activity, too.
The first half of 2024 has been a different narrative, however. In fact, according to Braff’s data, the first quarter of 2024 had at least 12 autism deals.
“Now deal flow is back on the way up for autism and likely to stay that way,” Dexter Braff, president of The Braff Group, said at the Behavioral Health Business Autism & Addiction Treatment Forum. “The lull in that space will turn out to be one of the shortest lulls we’ve seen in the sector when it experiences a downturn.”
Behavioral Framework received an investment from private equity firm Renovus Capital Partners at the start of 2024.
“We’re going to professionalize a lot of our tools and processes and invest in systems and tools and people,” Kyle West told BHB at the time. “The investment is going to help us continue to expand, grow, bring in leadership, promote people that we have and ensure that everything we’re doing is the highest quality. Success will come from that.”
