Activity in the Behavioral Health Care sector surged in the first quarter of 2021, rising 76% in deal volume compared with the fourth quarter of 2020 and 85% compared with activity in Q1:20, according to search results in our Healthcare Deals Database. Much of that demand came from the unfortunate mental health stress caused by the Covid-19 pandemic, and even with a “return-to-normal life” on the horizon, that demand doesn’t seem to be subsiding. However, it’s not just counseling and clinical services; other specialties such as autism treatment services are highly sought after. Even with all that activity, there is still room for new players to enter the M&A market, looking to build new platforms. KNR Therapy, a portfolio company of Shields Capital, is one of those new players. 

KNR Therapy provides home-based ABA (Applied Behavior Analysis) Therapy to children across the Tampa Bay area and has announced a merger with Forbes Behavioral Services. Similar to KNR, Forbes provides evidence-based ABA therapy to children and clients ranging from two to 26 years old in the Mount Dora area, which is about 35 miles north of Orlando. This is the first deal announce for KNR Therapy, but we suspect it won’t be the last as the company looks to expand across the Central Florida market. And who knows, maybe beyond that. 

Shields Capital is a sustainability-focused healthcare investment firm launched by Jack Shields, founder of Shields Health Solutions, a national specialty pharmacy integrator, and former President of Shields Health Care Group, the largest outpatient imaging provider in New England.