Please note that assistive links (commonly known as "skip to links") are used throughout this site. These links are not well-supported by some mobile devices. If you are encountering difficulty using these links, please navigate around these links, or access the site on a desktop browser.
Skip to the primary content of this page Skip to the footer of this page
Provident Healthcare Partners Provident Healthcare Partners

Q1 2024 Substance Use Disorder Services Update

Provident Healthcare Partners
Skip to the end of the Expertise Menu

Q1 2024 Substance Use Disorder Services Update

Investment in the addiction treatment sector is off to a slow start in 2024. In Q1, six majority transactions occurred, which was in line with 2023, but significantly less than 2021 and 2022 which saw a quarterly average of thirteen. Five of the six transactions completed were add-ons and one was a platform acquisition. From a growth playbook standpoint, SUD platforms are currently relying more on de novo and organic opportunities vs. M&A, but certainly will consider accretive deals, particularly ones not requiring significant debt financing.

Despite sluggish overall deal-flow, it is an encouraging sign the market continues to see new platform investment. This signals the sentiment among investors that the sector is poised for continued growth. Well-capitalized acquirers that do not require debt to fund deals continue to utilize M&A, made evident by Acadia’s deal-flow, completing three of the six Q1 transactions. Provident expects transaction activity to increase in Q3 and Q4.

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

[holo_button icon=”/wp-content/uploads/2024/04/Q1-2024-SUD-Newsletter.pdf” color=”#003561″ target=”blank”]PRINT/DOWNLOAD[/holo_button]