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.
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
