Industry pressures could make the behavioral health industry ripe for consolidation, especially smaller tuck-in deals.
That’s according to Pitchbook’s new report on the J.P. Morgan Conference. Despite the growing demand for behavioral health services, digital mental health companies have seen a steep valuation drop over the last year, reports Behavioral Health Business.
“Provider shortages, customer acquisition costs, and employer benefit belt-tightening will likely make consolidation among these providers an increasingly attractive option,” PitchBook’s report said. “While we could see a larger category merger similar to Headspace and Ginger’s tie-up from late 2021, current market conditions mean that tuck-in acquisitions are likely to be the name of the game for the near future.” Read more.
