Q1-2019 Behavioral Health Update

The new year has brought continued private equity investment into the behavioral health sector, with platforms in addiction treatment and autism services leading the field in add-on acquisitions in the first quarter. ​

Investment activity within autism services was especially robust in the first quarter of 2019 as three new platforms were formed, in addition to a landmark secondary transaction in which LLR Partners sold a majority position in LEARN Behavioral to Gryphon Investors. Investors continue to seek out ABA therapy platforms due to attractive reimbursement trends and increased incidence. ​

Addiction treatment platforms throughout the country are seeking add-on acquisition opportunities to complement organic growth initiatives such as hiring additional clinical providers and opening new treatment facilities across the continuum of care.​

As both the addiction treatment and autism sectors continue to expand in scale and sophistication, private equity investors will continue to seek strong platform caliber businesses with experienced executive leadership, operational reporting capabilities, and growth opportunities in new and existing geographies. ​

Provident expects platform investment and add-on acquisition volume to continue throughout the year, with valuations remaining strong across all behavioral healthcare segments. ​

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


Sources: SEC Filings; Company Press Releases, and Reports; IBISWorld; Capital IQ; PHP Estimates and Research. This document has been compiled with publicly available information. Provident Healthcare Partners, LLC makes no guarantee of its accuracy or completeness. No data or statement should be construed to be a recommendation for the purchase, sale, or retention of any security.
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