Worth the Trouble: The Challenges, Benefits of De Novo Expansion

Behavioral Health Business December 3, 2024
Matthew Blake

Entering new markets can be challenging for behavioral health providers. But de novo expansion is often a savvy strategy if they can land the jump.

“[Mergers and acquisitions] is the fastest way to grow, but the most economical, the most return on investment is definitely de novo,” Dan Davidson, managing director at Brentwood Capital Advisors, said at the Behavioral Health Business INVEST event in October.

Davidson has advised 40 behavioral health companies, including several that expanded through de novo.

De novo is a smart, long-term strategy, according to Tani Weiner, co-chair of the Behavioral Health Group at Polsinelli law firm.

“De novo has been a steady channel of growth, particularly as we’ve had a slower M&A economy in the last...

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