Federal agencies may be cracking down on private equity investment in health care, which could have implications for behavioral health dealmaking in the future. In early March, the Federal Trade Commission, the Department of Justice’s (DOJ) Antitrust Division, and the U.S. Department of Health and Human Services launched a new investigation into private equity and […]
While behavioral health dealmaking remained soft in 2023, one sector completed a record number of deals last year. Seventeen deals were completed in the outpatient partial hospitalization program (PHP), intensive outpatient program (IOP) and counseling sectors. Outpatient SUD treatment has become more popular because it is more affordable for patients and payers and easier for […]
Despite some public stumbles among private-equity-backed ABA providers, investors are still interested in the space. And 2024 could be a crucial M&A year 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 partners, […]
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 […]
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 […]
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 […]
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, […]
Behavioral health was not immune from the dip in dealmaking in the first half of 2023. Deals in the behavioral health sector were down 33% in the first half of 2023, according to new data by M&A advisory firm The Braff Group. In the first half of the year, there were 75 behavioral health deals, […]
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 […]
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 […]
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