Unlike many other healthcare sectors experiencing a decline in M&A deal volume, the Behavioral Health Care (BHC) market has seen a plethora of deal activity in 2025. According to data captured in the LevinPro HC, there have been 74 BHC transactions announced since the start of the year, outpacing the 73 deals announced in 2024. The deal volume of 2025 is on track to outpace the 83 deals reported in 2023 as well. However, 2022 and 2021 saw incredibly high deal volume; there were 113 deals reported in 2022 and 131 in 2021. The large deal volume seen in 2022 and 2021 was due to the high demand for mental health services resulting from the challenges faced by the country during the COVID-19 pandemic.
In 2025, so far, there have been three transactions in the BHC space with disclosed prices. The largest is Sevita’s acquisition of BrightSpring Health‘s community living business for $835 million.
Sevita is a provider of home and community-based health care that is backed by Centerbridge Partners L.P. The acquired assets include BrightSpring Health’s ResCare Community Living. The community living business is expected to generate approximately $1.2 billion in revenue and approximately $128 million of adjusted EBITDA in 2024, according to the original deal press release from January 21, 2025.
Counseling & psychiatric care was the most active subsector with 37 transactions; substance use disorder treatment saw 11 deals; there were 10 autism spectrum disorder treatment provider deals.
With so many transactions, the LevinPro HC team wanted to delve into the process from a buyer’s perspective.
We spoke with Steve Page, CEO of SUN Behavioral Health, who was able to shed light on the transaction process, as well as discuss a recent acquisition.
SUN Behavioral Health is a provider of freestanding psychiatric hospitals, focusing on addressing unmet mental health needs in underserved communities. The company operates facilities that offer comprehensive inpatient and outpatient care. It received a $34 million growth capital investment from LLR Partners in November 2016.
In May, SUN Behavioral Health announced that it acquired Seaside Healthcare‘s home and community services unit. Previously backed by Pharos Capital, Seaside Healthcare provides behavioral health care across a full spectrum of care, including acute hospitalization and home and community-based services. Bailey & Co. represented Pharos Capital Partners. The financial terms were not disclosed.
According to Page, the Seaside acquisition came to them through one of their current investors.
“The process was initiated sometime in late 2024 and closed on May 1, 2025,” said Page. “This roughly six-month period is about what we would expect from the introduction to closing of a transaction process.”
Seaside was an appealing prospect for SUN because it expanded upon the company’s existing capabilities. According to Page, Seaside has roughly 25 different levels of services that span six states. The levels of services were a diverse offering that would allow SUN to expand its services into the home & community sector (which was something they previously didn’t offer) as well as broaden its geographical reach.
However, Page did make it clear that geographical reach is not the only approach to an acquisition.
“Our development strategy is focused on creating the full continuum of care as opposed to just building in various geographies,” Page said. “There’s a lot of opportunity in our existing footprint to create the full continuum of care.”
He touched lightly upon how often the most intriguing acquisition opportunities often address multiple unmet needs.
“Seaside was treating the same patient profile we treat but outside of the hospital through its home & community services,” said Page.
This allows for a seamless addition to its umbrella.
Extending the same level of care beyond the hospital was a key factor driving this transaction and a priority for Page.
“Over the years, we’ve thought a lot about the challenge many of our patients face transitioning from an acute stay back into the community,” Page said.“One area where patients consistently struggle after leaving the hospital is with their discharge plan. For many, the biggest concern isn’t filling their prescription or making a therapy appointment; it’s figuring out where they’re going to sleep.”
This reflects a broader trend of emphasizing care beyond inpatient facilities. With the addition of Seaside, SUN is better equipped to care for patients outside of the inpatient setting. This will lead to a better and more successful recovery.
Perhaps the most important part of the transaction process is the closing, as there are a plethora of factors that can go wrong and stop a transaction. When speaking about ways that acquirers can ensure the transaction comes to fruition, Page’s commentary was centered around one thing.
“My strategy has always been to get the deal breakers out upfront; it allows us to prioritize projects that have a chance to get done and gives the other party some confidence they’re dealing with someone honest and straightforward,” he said.
He concluded our discussion by addressing a common concern patients may have: how does a new backer impact the quality of care?
“The patient shouldn’t see any difference in quality of care because all of Seaside’s local leadership stayed in place; the only impact should be more support,” he said. “We’re very conscientious about how staff feel about the transaction. We make every effort to communicate that the transaction reflects the great work they’re doing, and our intent is to invest and grow from the foundation they have helped create.”
