TLDR:
In the fourth quarter of 2023, there were 31 behavioral health deals, the least since 2020, according to Mertz Taggert’s Q4 2023 dealmaking report. Overall, there were 136 behavioral health deals in 2023, compared to 188 in 2022. However, venture capital investment in the behavioral health space is expected to increase in 2024, with seed and venture funding accounting for 12 of the 31 deals in Q4 and totaling $257.9 million. Mental health was the most active segment in dealmaking, with private equity investment accounting for the majority of the deals. Addiction treatment M&A was the second most active subsector, while autism and IDD services saw a decline in deal activity.
Venture capital investment in behavioral health is expected to increase in 2024, with seed and venture funding accounting for 12 of the 31 deals in Q4 2023, totaling $257.9 million.
Mental health was the most active segment of behavioral health dealmaking, with 19 deals in Q4 2023, primarily financed by private equity investment.
Addiction treatment M&A was the second most active subsector, although the total number of deals in 2023 was lower than in previous years.
Autism and IDD services saw a decline in deal activity, with only three deals in Q4 2023 compared to 24 in 2022.
