Voices: Nancy Weisling, Senior Advisor, The Braff Group

This article is sponsored by The Braff Group. In this Voices interview, Behavioral Health Business sits down with Nancy Weisling, Senior Advisor, The Braff Group, to discuss key strategies for maximizing value in a sale. She explains how cash and timing factor into a behavioral health deal, as well as the importance of recasting financials […]

The Rise of Earnouts and Seller Notes in Behavioral Health M&A

While behavioral health deals have been relatively slow since the post-pandemic boom, many buyers and sellers are now evaluating different structures for deals that could include earnouts and seller notes. “There absolutely has been a slowdown in M&A activity really since 2022. And there continues to be a real gap in valuation expectations between buyers […]

‘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 […]

New Autism Deals Needed to Redefine Valuation Standards

Private equity drives almost all investment and dealmaking in autism therapy and launched the space to record highs a few years ago. But now investors and their autism therapy platforms are waiting for something to give before getting back into the dealmaking game. But what that is not clear, experts in the space tell Autism […]

How Federal Probe Into Private Equity’s Health Care Role Could Impact Behavioral Health Deals

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 […]

IOPs, PHPs Were Bright Spots Amid 2023’s Behavioral Health M&A Slowdown

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 […]

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 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, […]

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 […]