Behavioral health M&A will likely be down in 2023 compared to a string of red-hot years that peaked in 2021.
That’s not necessarily a bad thing. The industry is on the downswing of a dealmaking cycle that includes booms and cooling periods. Still, the interest in behavioral health by investors and strategic acquirers won’t be diminished, Dexter Braff, president of the M&A advisory firm The Braff Group, told Behavioral Health Business.
“We are in a transitionary phase which is code for an M&A guy [saying] ‘It’s not as good as it was last year,’” he added. “So what’s the outlook? Strong, it’s still good. The demand for behavioral health still far outweighs the supply. What we also see, though, is a more disciplined approach towards determining what’s going to be bought and how much is going to be paid.” Read more.
