Private Equity Investment is Driving Behavioral Health to New Levels
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.
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 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.
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.