Q2 2023 Substance Use Disorder Update
Q2 2023 Substance Use Disorder Update
Dealmaking activity in the Substance Use Disorder (SUD) space improved slightly in Q2 2023 relative to Q1 2023. Deal flow is still down significantly from the elevated 2021 and 2022 periods. Annualized year-to-date transaction volume is down 26% from 2022. Restricted lending markets, inflation, and continued labor shortages are forcing industry consolidators to put M&A on pause and reallocate resources to internal organic growth and de novo initiatives.
Notable Q2 2023 deal-flow included two new platform investments. Banyan Treatment Centers and Your Behavioral Health both received investment from leading private equity firms, establishing the two newest SUD consolidators. These transactions indicate continued investor interest in the SUD space despite sluggish transaction volume in the current market.
To print and download the full Substance Use Disorder Update report, please click below…
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