Q4-2016 Behavioral Health Update– In the fourth quarter of 2016, consolidation activity in the behavioral healthcare sector remained robust as both financial sponsors and private equity backed strategics were actively acquiring treatment providers to diversify their platforms’ service offerings and expand into new geographies.
Q3-2016 Behavioral Health Update– The behavioral health sector continued its rapid consolidation pace from previous quarters, as buyers have been offering premium valuations. Of particular note was Acadia Healthcare’s acquisition of Highland Hospital Association’s 80 bed psychiatric facility and 16 bed residential treatment center.
Q2-2016 Behavioral Health Update– Over two dozen behavioral health deals were announced or completed in the second quarter of 2016, making it one of the busiest periods in terms of acquisitions in recent memory. Notably, most deals were relatively small compared to prior quarters, however Kohlberg and Company’s acquisition of The Meadows of Wickenburg and its subsequent formation of a new holding company in Alita Care certainly stands out.
Featured Publication– Healthcare transactions announced in January show a few hot trends—growth in behavioral health deals, movement in the post-acute care space and acquisitions of health insurance companies by providers, according to professionals who counsel health-care industry players on mergers and acquisitions.
Q1-2016 Behavioral Health Update– Public policy decisions continue to favor sustained interest in the behavioral health sector. President Obama’s announcement of $500 million to support access to mental health and substance abuse treatment was notable. One noteworthy platform investment was made by Comvest Partners during the quarter, while Acadia’s announced $2.2 billion acquisition of U.K. based Priory Group was the stand out strategic acquisition.
Provident Perspectives– The behavioral health sector has experienced unprecedented growth over the past ten years. In this Provident Perspective, we cover two subsectors that have been the source of a great deal of investor interest, and that we believe will continue to be the focus of both strategic and financial sponsors over the coming years.