The HealthCare M&A Report First Quarter 2016 is about to be published, and here is a look at the Behavioral Health Care sector. As you can see, deal activity decreased in the first quarter, down 38% to eight transactions. The quarter’s total represented 21% of the 39 transactions announced in the past 12 months and virtually no increase over the previous quarter. Behavioral health care facilities and programs are largely community-based, and transactions are often conducted between private parties and thus, not reported publicly.

Still, this category is seeing some consolidation from private equity firms as well as strategic buyers, who are building platforms across state and national borders. Substance abuse and addiction treatment programs were the targets in Q1:16, and three were programs to help intellectually and developmentally disabled people.