INSIGHT

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.
  • “Provident’s depth of experience and practical business savvy was demonstrated in their ability to cut through what sometimes looked like impasse.”

  • “While the decision to sell our business was a difficult one, Provident vigilantly represented and protected our best interests throughout the transaction.  Provident was the right choice for Cascade and I would recommend their services to anyone.”

  • “After working with Provident on several transactions, it is evident that their extensive industry knowledge and deal expertise prove to be invaluable to their clients.”

  • “Provident listened to our story, confirmed that our business was valuable and made us feel like this was the only transaction important to them.”

  • ”I have a tremendous amount of appreciation and gratitude to the Provident team for their hard work and diligence throughout this process. Each and every member of the Provident team is excellent at their jobs and it has been a pleasure working with such a professional team. Provident has provided outstanding guidance and counsel, and this deal could never have gotten done without Provident’s leadership.”

  • “A lot of investment bankers were interviewed, Provident was chosen. Provident delivered. My clients could not be happier.”

  • “We would not have been successful navigating the process without Provident’s hard work and active participation. They exceeded our expectations and we would highly recommend them to any health care company seeking a knowledgeable and engaged investment banking firm.”