Mergers and acquisitions in the behavioral health field are expected to increase in 2024 after just 31 deals were completed in the final quarter of 2023, according to Mertz Taggart's "Q4 2023 Behavioral Health M&A Report."
"The consensus today is that we'll have increased activity across the sector," managing partner Kevin Taggart said in the report. "Improved capital markets and quality deal flow will drive the activity, especially in the 2nd half of 2024."
The final three months of 2023 saw 19 transactions involving mental health providers, 11 transactions involving addiction treatment, and 3 transactions involving providers of autism therapy and intellectual/developmental disability treatment services. It was the fewest number of transactions completed since the beginning of the COVID-19 pandemic, the report said.
Analysts from Mertz Taggart said in the report they expect an increase in activity in the second quarter of 2024 if expected interest rate cuts by the Federal Reserve come into play.