Behavioral Health M&A Activity Remains Strong in 2025, Outlook to 2026

Private equity firms continue to target the U.S. behavioral health sector, where demand for services is rising and the market remains fragmented. According to the National Institute of Mental Health, about one‑in‑five adults (≈59 million) experience a mental health condition, while more than 7 million Americans live with an intellectual or developmental disability. Autism spectrum disorder affects roughly 1 in 31 children, a prevalence that has doubled in the past decade. These statistics underscore the large addressable market that is driving investment.

Steve Aguiar, managing director of Healthcare Investment Banking at Fifth Third Securities, said, “We’ve seen significant investment across behavioral health sectors for many years and don’t expect that to change given the large addressable market and unmet demand.” He noted that M&A activity remained strong throughout 2025 and is projected to stay robust into 2026, with subsectors such as autism therapy and intellectual‑developmental disability services expected to attract outsized interest as buyers seek to consolidate fragmented providers and achieve scale.