Behavioral Health Business August 9, 2024
The substance use disorder (SUD) treatment industry has experienced significant challenges and breakthroughs in 2024, but a handful of providers are emerging as ones to watch in the coming year.
The SUD dealmaking space has stayed stale thus far in 2024. While deals once flowed freely, only 10 closed in the first half of the year. This contrasts starkly with just a few years earlier. In 2021 and 2022, some quarters saw over 20 deals.
Investors’ interest in SUD businesses cooled due to lending markets and regulatory changes, according to M&A advisory firm Provident Healthcare Partners. Increased scrutiny from the FTC and more expensive capital have also lowered valuations and lengthened the dealmaking process.
Despite these hurdles, deal flow...