Investors Bullish on School-Based ABA Providers

Despite some public stumbles among private-equity-backed ABA providers, investors are still interested in the space. And 2024 could be a crucial year for M&A for autism practices. This is partly because many ABA and autism providers completed their last transaction between 2017 and 2019. “As you think about the typical investment period, for those Capital […]

Investors Pursue Behavioral Health Platform Deals After Tumultuous 2023

After a year of reckoning, the behavioral health industry is set up to see platform deals return to the market. In 2023, behavioral health dealmaking was down by roughly 30% year-over-year. This slowdown was partly due to macroeconomic trends, including inflation, high interest rates and the conflicts in Eastern Europe and the Middle East. The […]

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 […]

‘You Can’t Stay Like This Forever’: Buyers Becoming More Skittish in Behavioral Health M&A

M&A activity in the behavioral health space has slowed down significantly in recent years, dropping to pre-pandemic levels. The behavioral health industry is not alone in this, Dexter Braff, president of M&A advisory firm The Braff Group, said at Behavioral Health Business’ INVEST conference. External factors, including inflation, staffing shortages, fear of recession and unrest […]

Art of the Behavioral Health Deal: Critical Considerations for Operators Looking to Sell

Behavioral health operators looking to cash in on their businesses must understand both sides of the M&A equation. That partly means figuring out how much their company will be worth moving forward and what goes into the valuation-setting process. It also means understanding the micro- and macro-level forces shaping the industry in the present. Generally, […]

Annualized Behavioral Health Dealmaking Down 26% in 2023

Rising interest rates, high labor costs, and conflict in Eastern Europe have led to a shaky start to behavioral health dealmaking in 2023. That’s according to a new report by M&A advisory firm The Braff Group, which found the annualized results for behavioral health dealmaking are down by more than 26% from 2022. Still, compared […]

Autism Therapy Is the ‘Perfect Place’ to Invest as Multiples, Headwinds Decline

The autism therapy industry segment may see a bounceback in dealmaking in the not-so-distant future. After reaching a fever pitch in 2019, the number of deals has trended downward, with 2022 seeing several high-profile stumbles of major platform companies, inflation, rising interest rates and workforce challenges. However, several industry insiders attending the Autism Investor Summit […]

Autism Therapy Providers Tie Upskilling to Beating Turnover, Serving More Families

Staffing challenges in autism therapy are driving providers to invest heavily in training and upskilling registered behavioral technicians (RBTs). In recent years, inflation and a red-hot job market made hiring and retaining staff harder, especially for RBTs Further, investors have tied staff retention to the company’s value as an investment and as a provider of […]

Voices: Exploring Purchase Price Multiples in Behavioral Health M&A with The Braff Group’s President Dexter Braff

This article is sponsored by The Braff Group. In this Voices article, Behavioral Health Business sits down with Dexter Braff, President of The Braff Group, to discuss one of the first topics that come up in behavioral health mergers and acquisitions processes — purchase price multiples. From both the buyer and seller perspective, he explains […]