Behavioral health was not immune from the dip in dealmaking in the first half of 2023.
Deals in the behavioral health sector were down 33% in the first half of 2023, according to new data by M&A advisory firm The Braff Group. In the first half of the year, there were 75 behavioral health deals, which broke down to 40 in Q1 and 35 in Q2.
“The story of 2023 will be how macroeconomic trends have upended the M&A market across all industries,” Dexter Braff, president of The Braff Group, told Behavioral Health Business. “Rising interest rates coupled with the record-breaking deal volume and pricing during 2021 and the first half of 2022 have combined to blunt activity in 2023. But with private equity still sitting on extraordinary amounts of dry powder and sellers getting more accustomed to pricing that, while still above average, is not quite at the unsustainable frenzied levels we saw in 2021/22, we will likely begin to see a ramp up in activity in Q4 and heading into 2024.” Read more.
