Behavioral Health Private Equity | Market Update Fall 2022 | PGP

Behavioral Health Private Equity – Market Update

Fall 2022

Driven by numerous national tailwinds, including reduced stigma and the rise of telehealth, behavioral health has become a highly targeted sector for private equity investment. The behavioral health market in the U.S. is highly fragmented and in the very early stages of consolidation. 

The scope of care in this specialty is exceptionally broad, covering mental health, addiction and autism treatment, care for developmental disabilities, and inpatient psychiatry. 

Consolidation in behavioral health varies by subsector; Addiction, for example, has multiple regional and national platforms operating. 

Mental health treatment-focused groups have seen far less consolidation, with a few scaled groups operating and new platforms being created monthly. The growth of the behavioral health space and the level of its deal activity continues to ramp up, with groups achieving unprecedented valuations in 2022. 

Business owners in the behavioral health space are uniquely positioned to capitalize on this increased activity to achieve an attractive outcome in a sale to a strategic acquirer or in the formation of a new platform with a private equity partner. First mover advantage is still possible in several regions and specialties.

GroupSpecialty
promises behavioral health logoPromisesAddiction
Meridian Behavioral Health LogoMeridian Behavioral HealthOutpatient Addiction Treatment
Applegate Recovery logoAppleGate
Path Behavioral Healthcare LogoPath Integrated HealthcareMental Health
RHA Health Services logoRHAMental Health and IDD/ABA
Array logoArray Behavioral CareMental Health
GBH logoGenerations Behavioral HealthMental Health/
Geropsych
CM Counsel logoCM CounselMental Health
Community Medical Services logoCommunity Medical ServicesOutpatient Addiction Treatment
Mind Beacon logoMindbeaconMental Health
ViaQuest Solutions for Independence logoViaquestMental Health
Summit BHC logoBehavioral Health Group, SummitOutpatient Addiction Treatment
Vertava Health logoVertava HealthOutpatient Counseling & Psychiatry
Evolve Treatment Centers logoEvolve Treatment CentersMental Health
Sondermind Therapy Works logoSondermind
GroupSpecialty
Aware Recovery care logoAware Recovery CareAddiction
Calo logoCalo ProgramsMental Health
ARK Behavioral Health logoARK Behavioral HealthAddiction
Meadows Behavioral HealthMeadows Behavioral CareMental Health / Addiction
Pinnacle Treatment centers logoPinnacle Treatment CentersOutpatient & Residential Therapy
Refresh Mental health logoRefresh Mental HealthMental Health
Sound Healthcare logoSound HealthMental Health / Addiction
Bloom Health CentersPsych Associates of MarylandMental Health, Testing
Empower Community Care logoEmpower Community CareMental Health
Health Connect America logoHealth Connect AmericaMental Health
Uprise Health logoUprise HealthData Focused Behavioral Health
Seaside Healthcare logoSeaside HealthcareOutpatient & Community Behavioral Health
AcadiaHospital Psych
UHS logoUHSMental Health + Addiction
lightfully behavioral health logoLightfully Behavioral HealthMental Health
GroupSpecialty
Crossroads Family Care logoCrossroads, Family Care CenterOutpatient Addiction Treatment
Fort Behavioral Health logoFort Behavioral HealthAddiction
Perimeter Healthcare logoPerimeterFacility Based Mental Health /Psychiatry
MindPath Health logoMindPathMental Health
Transformations Care Network logoTransformations Care NetworkMental Health
LifeStance Health logoLifeStanceOutpatient Psychiatric & Behavioral
Sensible Care logoSensible CareMental Health
Better Help logoBetterHelpMental Health
Ideal Option logoIdeal OptionOutpatient Addiction Treatment
BHG Group logoBHGOutpatient Opioid Focused
BayMark Health Services logoBayMark Health ServicesOutpatient Addiction Treatment
Foresight logoForesight Mental HealthMental Health
Kolmac Outpatient Recovery logoKolmacOutpatient Addiction Treatment
Nystrom & Associates logoNystrom & Associates, Odyssey Behavioral Healthcare, Pyramid HealthcareOutpatient Therapy, Behavioral Health & Addiction Treatment

Interested in how private equity can be helpful in your practice?

RECENT BEHAVIORAL HEALTH TRANSACTIONS

DateTargetPlatformPE Sponsor
September 2022The Ross Center *Thurston GroupARC Health
August 2022Brookedale Premier Addition RecoveryWebster Equity PartnersDiscovery Behavioral Health
August 2022The Incredible YearsNorthlane Capital PartnersEmpower Community Care
August 2022Column HealthShore Capital PartnersBrightView Health
August 2022Action Behavior CentersCharlesbank Capital PartnersCharlesbank Capital Partners
August 2022Southeast PsychThurston GroupARC Health
August 2022SpringstoneApollo ManagementLifePoint Health
August 2022Monte Nido & AffiliatesRevelstoke Capital PartnersRevelstoke Capital Partners
August 2022Psych360*WP Global PartnersMindCare Solutions Group
July 2022Sandstone CareThe Vistria GroupThe Vistria Group
July 2022Monte Nido & AffiliatesRevelstoke Capital PartnersRevelstoke Capital Partners
July 2022Hallmark YouthcarePetra Capital PartnersAcute Behavioral Health
July 2022A New Era TMS & PsychiatryWebster Equity PartnersDiscovery Behavioral Health
July 2022San Antonio Recovery CenterWebster Equity PartnersBayMark Health Services
July 2022Center or Behavioral, Educational & Social TherapyFive Arrows Capital PartnersThe Stepping Stones Group
*These Targets were advised by Physician Growth Partners

Recent PGP Transaction Expertise

The Ross Center Transaction
Psych360  Transaction
Hodari Tombstone
Mays N Schnapp Transaction
Urology associates transaction
NW Specialists Transaction

About Physician Growth Partners

Physician Growth Partners (PGP) is a transaction advisory firm which represents independent physician groups in transactions with private equity. We are Healthcare Transaction Advisors differentiated by:

  • Senior partner involvement at every stage of the process
  • Unmatched relationships with all key private equity and strategic buyers interested in behavioral health
  • Recent behavioral health transaction experience
  • Educational approach focusing on both partnership and cultural fit, while achieving a market clearing valuation

Learn More About Behavioral Health Private Equity

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