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Q4 2023 Mental Health Update

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Q4 2023 Mental Health Update

The mental health space continued to see tepid deal flow to close out a moderate calendar year for M&A activity. The space, like other verticals within behavioral health, experienced a slowdown relative to 2021 and 2022, which were landmark years both in terms of deal count and new platform formations.

Many of private equity consolidators have focused internal efforts on growing organically and integrating previously acquired businesses. As such, there is a large divide between platforms that continue to be acquisitive and those that have tightened the M&A spigot.

Going forward, Provident expects transaction activity to rebound in 2024, due to more stability within the lending markets, lower interest rates, and consequently more seller friendly valuations.

To print and download the full Mental Health Update report, please click below…

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