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Provident Healthcare Partners Provident Healthcare Partners

Q4 2023 Substance Use Disorder Services Update

Provident Healthcare Partners
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Q4 2023 Substance Use Disorder Services Update

The broader SUD space continued its sluggish pace into Q4, with only eight deals announced, representing a 33% reduction in deal flow from Q4-22. However, the year ended on a high-note, as Q4 marked the most active quarter of the year, a consistent trend across all sectors. Overall deal flow is down close to 60% since its high in 2021 driven mainly by economic uncertainty, labor shortages, and rising interest rates.

Three notable transactions took place in Q4 that could signal improving investor sentiment in the space. Fulcrum Equity and Renovus Capital both established new platform investments with their respective acquisitions of Mississippi-based Defining Wellness Centers and Minnesota-based Meridian Behavioral Health. Renewed interest from private equity investors in the SUD space is an encouraging sign for M&A within the sector heading into 2024. PHP anticipates a steady rebound from 2023 deal volume lows.

To print and download the Substance Use Disorder Services Update report, please click below…

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