All types of medical practices have been consolidating over the past 10+ years. While transaction volume declined in 2020 activity accelerated. 2021 will be a record year for completed transactions.
2021 projects that private equity investment in behavioral health will reach an all-time high as investors seek to cash in on the growing demand for therapeutic services.
The behavioral health market is highly fragmented which is always a catalyst for consolidation. COVID-19 added to that and created an increased opportunity in M&A activity.
We think about private equity-backed consolidations as part of a lifecycle. Like most business cycles, it starts out with pioneering that accelerates through further adoption.
Even with the chilling effects of COVID-19, 2020 was the biggest deal year yet for private equity's investment in women's health practices (in terms of transaction count).
