Behavioral Health Mergers and Acquisitions

An intellectual or developmental disability (I/DD), autism diagnosis, or any other mental health condition can severely impact both the life of the one diagnosed and those caring for them and require a lifetime of treatment. Our nation has seen an increased focus on treating such conditions, along with rising insurance reimbursements, and, for that reason, behavioral health M&A has shown steady growth over the past several years. From a business perspective, buyers are drawn to the typically longer tenure of the average mental health patient versus the geriatric-focused businesses.

Behavioral Health M&A Trending Up

The need for mental health treatment was highlighted during the pandemic. Specific industries seeing the greatest increase in M&A activity have been Substance Use Disorders (SUD), Applied Behavioral Analysis (ABA), I/DD, and Mental Health. 2021 brought a 34% increase from 2020 in behavioral health transactions, creating back-to-back record years for the industry. This type of demand affords a seller the opportunity to consider multiple options, from selling outright to pulling in a partner to generate a “second bite of the apple.”

Diversify with Behavioral Health M&A

Many of our hospice and home healthcare partners want to add behavioral health to their footprint. Healthcare sellers who qualify as a platform for a buyer entering that market can achieve significantly accelerated multiples on EBITDA.

Our Market Sectors

Ready to talk?

Our team of advisors experienced in home healthcare, hospice, and behavioral health are ready to help you set your Agenda.

Buyers
Sellers