Behavioral Health Mergers and Acquisitions

An intellectual or developmental disability (IDD) can start at any time, up to 22 years of age, and will likely require consistent specialized care for a lifetime. For that reason, behavioral health M&A has shown steady growth over the past few years. From a business perspective, buyers are drawn to the typical long tenure of the average mental health patient versus the geriatric-focused businesses.

Behavioral Health M&A Trending Up

As a result, behavioral health transactions in the first quarter of 2020 were up 20% over the previous year, with a total of 18 transactions. There again, 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 partners want to add behavioral health to their healthcare footprint. Healthcare sellers who qualify as a platform for a buyer entering that market can achieve significantly accelerated multiples on EBITDA.

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