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Provident Healthcare Partners Provident Healthcare Partners

Q3 2024 Substance Use Disorder

Provident Healthcare Partners
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Q3 2024 Substance Use Disorder

The substance use disorder (SUD) sector experienced a minimal uptick in M&A activity during Q3 2024, compared to Q2. The market is showing signs of recovery, with more reported deals in market, softening interest rates, and increased fundraising. This gradual improvement can be attributed to a combination of factors, including a stabilizing regulatory environment and adjustments in valuation expectations. Scrutiny of healthcare deals persists, but market participants have adapted their strategies to navigate these challenges. We anticipate this leading to more creative deal structures and a focus on smaller, strategic acquisitions that are less likely to trigger extensive regulatory reviews.

Provident expects a gradual increase in deal activity as we move into Q4 2024 and beyond. The convergence of seller and buyer valuation expectations, which began in Q3, is expected to continue, potentially unlocking more transaction volume. Additionally, the ongoing opioid crisis and increased public awareness of mental health issues continue to drive demand for SUD services, creating long-term growth opportunities for well-positioned providers.

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

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