Venture Capital Accounts for $350M in Behavioral Health Dealmaking in Q1

The behavioral health industry appears to have found a new, historically elevated floor for deal flow in the year’s first quarter. Since the beginning of 2023, quarterly deal totals tracked by the M&A firm Mertz Taggart have been at about 40 transactions. The first quarter of 2024 brought much of the same, with a few […]

‘There’s No Question’ Buyers Want In On the Outpatient Mental Health Space Post-CARE Counseling-Optum Deal

Optum owned Refresh Mental Health’s acquisition of outpatient mental health provider CARE Counseling was a bright spot in a slow dealmaking environment. Still, the transaction may provide insights into the near future of outpatient mental health M&A. The tie-up illustrates that interest in outpatient mental health dealmaking is still strong. It also shows that Refresh […]

Behavioral Health Dealmaking to See More Venture Capital Investment in 2024

While behavioral health dealmaking remained slow in the last quarter of 2023, seed and venture deals became a more active part of the space. That’s according to Mertz Taggert’s Q4 2023 dealmaking report, which recorded 31 transactions in the fourth quarter of 2023–the least since 2020. Overall, there were 136 behavioral health deals in 2023, […]

Top Behavioral Health Trends for 2024

After a tumultuous 2023, 2024 may be a steadier year for the behavioral health industry. While behavioral health deals slipped in 2023, Behavioral Health Business expects M&A to pick up this year as interest rates fall and the economy stabilizes. Still, the M&A craze of 2021 is unlikely, and mega deals will be scarce. This […]

Expect More Distressed Behavioral Health Assets to Come to Market in 2024

Distressed assets in behavioral health are more likely to come to market in 2024, according to several dealmaking professionals. This is bad news for buyers who acquired assets at the top of the market three to five years ago. Multiples are down from atmospheric highs, leaving it unlikely that investors will make exits at their […]

The Behavioral Health Deal Slump May Be Overblown 

Fears for a sluggish 2023 may have been overblown. “Aggressive” deals are still being made, though they may be smaller than in years past.  That’s according to industry insiders at Behavioral Health Business’ 2023 INVEST conference. Lenders and issues with access to capital drove lower transaction volumes in 2023, Kevin Taggart, managing partner at Mertz […]

‘If There Is a Chilling Effect, It’ll Be Very Temporary’: What CARD’s Bankruptcy Means for the Autism Industry

The Center for Autism and Related Disorders’ (CARD) bankruptcy doesn’t foreshadow a new level of doom and gloom for the industry as a whole. Although CARD is one of the largest companies operating in the space, it shouldn’t be used as a bellwether for autism therapy’s future outlook, several insiders told Behavioral Health Business. “I’d […]

PE-Backed Harmony Health Group Scoops Up Former Delphi Facilities

Private equity-backed Harmony Health Group has acquired three facilities that were formerly part of Delphi Behavioral Health Group’s network. Charlotte, North Carolina-based Harmony Health Group operates 13 treatment centers throughout Florida, North Carolina, Tennessee, New Jersey and Massachusetts. Services at those facilities include treatment for mental health and substance-use disorders (SUDs), as well as dual-diagnosis […]