Several regulatory and macroeconomic shifts created a new era of heightened scrutiny in behavioral health investing.
Higher interest rates, workforce challenges and inflation have made investors and acquisitive companies more thoughtful about where they place their bets. On top of the market force headwinds, the Biden administration and some state governments have signaled that they will put greater scrutiny on health care M&A, reports Behavioral Health Business.
Over the last two years, deal volumes have fallen, reflecting a much more conservative approach to growth in behavioral health. As a part of that, buyers in the behavioral health space are adding to and being more thorough in their reviews of target companies, according to Bragg Hemme and Paul Gomez, co-chairs of the behavioral health law group at the law firm Polsinelli. Read more.
