Q2-2021 Behavioral Health Update
29 deals occurred in the behavioral health space in Q2, marking a slight decrease from the previous quarter, but building momentum for the overall expected growth of acquisitions in the behavioral health space for this year. Private equity has demonstrated an increasing desire to acquire platforms in the space, with 22 of 29 deals coming through PE sponsors.
As COVID-19 begins to move into the periphery, more individuals are anticipated to use behavioral health services than in 2020. Mental health consciousness has risen sharply alongside a 25% increase in claims over the course of the pandemic, resulting in a greater awareness and therefore demand for services in the space.
Provident anticipates deal flow in the space to increase over the remainder of the year, with private equity facilitating many of these transactions. The firm also anticipates a general increase in IPOs in behavioral health as it becomes increasingly consolidated
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