Behavioral Health Acquisitions Peak at Year End: Mental Health and Addiction are Top Consolidators

The fourth quarter of 2021 delivered forty-two reported behavioral health acquisitions, reaching a new peak level for the 2021 calendar year. Mental health and addiction treatment continues to be at the forefront of consolidation. A few notable deals from the period are highlighted below.

Behavioral Health Deals Continue at a Strong Pace. Activity Suggests a Surge of Acquisitions in Q4.

The third quarter of 2021 delivered thirty-three reported behavioral health acquisitions, continuing a strong pace of deal activity over the past year. Mental Health and Addiction treatment continues to be at the forefront of consolidation.

Transaction Volume Remains High Throughout Behavioral Health

The second quarter of 2021 delivered thirty-four reported behavioral health transactions, continuing a strong consolidation surge within the industry. We generally expect high deal flow throughout 2021, supported by increasing private equity interest, a favorable government, and a seller pool that is ready to transact.

Transaction Volume Continues to Increase Across Behavioral Health

The first quarter of 2021 delivered 38 reported behavioral health transactions, an increase over any quarter in 2020. We expect some of this activity reflects deals that were delayed due to COVID-19. However, we generally expect high deal flow throughout 2021, supported by increasing private equity interest, a favorable government, and a seller pool that is ready to transact.