Behavioral Health Business May 17, 2024
The behavioral health industry appears to have found a new, historically elevated floor for deal flow in the year’s first quarter. Since the beginning of 2023, quarterly deal totals tracked by the M&A firm Mertz Taggart have been at about 40 transactions.
The first quarter of 2024 brought much of the same, with a few more than other quarters: 42 in total, according to the firm’s latest report. The stability shows that behavioral health shows relative resilience to the many pressures tamping down on health care deal volume generally.
Private equity investors continue to be the primary drivers of dealmaking. However, venture capital firms have increasingly engaged in “growth equity” deals where they buy minority stakes in companies they believe...