Banker Insights: Home-Based Care

The New Playbook for Home-Based Care M&A

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The New Playbook for Home-Based Care in 2026

Why Quality, Not Scale, Will Drive Value

The home-based care market has entered a new phase. After years of rapid consolidation fueled by cheap capital, investors and buyers have reset their priorities. In 2026, success is no longer defined by how large an organization becomes, but by how well it operates.

Key Takeaways

  1. The market is open again, but more selective
  2. Valuation now centers on operational quality
  3. Integration across the care continuum is critical
  4. Mid-market deals are driving activity
  5. Regulation and compliance are now the gatekeepers
  6. Private equity is active, but more disciplined

The home-based care industry has matured into a performance-driven market.

The next generation of leading organizations will not be those that scale the fastest , but those that build the most durable, compliant, and integrated platforms.

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For more information or questions, please contact the Healthcare team:

Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.com

Brad Erhart, Director: berhart@hexagoncapitalalliance.com

Market Monitor: Outdoor & Recreation

Market Monitor: Outdoor & Recreation

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Outdoor & Recreation Market Outlook
(2025–2026)

  • The Outdoor & Recreation market experienced a year of stabilization and gradual recovery in 2025, despite mid-year turmoil caused by tariff implementations.
  • Companies made meaningful progress in reducing elevated inventory levels built up during the pandemic-driven surge in demand.
  • More disciplined promotional activity, tighter purchasing strategies and supply chain improvements were key drivers of inventory normalization and gross margin expansion.
Consumer Demand and Participation
  • Outdoor participation remained a major demand driver, with more than 181 million Americans engaging in outdoor activities (compared to 175 million in 2024, ~3–4% increase).
  • Despite a more cautious retail environment, sustained participation levels continue to support investment in the sector.
  • Consumer demand remained stable, with premium brands, especially those with strong direct-to-consumer channels, benefiting from:
    • Increased focus on health and wellness
    • Greater spending on experiences
    • Continued interest in outdoor activities
M&A Activity
  • M&A activity across the sector increased modestly as financing conditions improved.
  • Greater operational visibility encouraged strategic acquisitions focused on:
    • Product line expansion
    • Entry into adjacent markets
    • Enhancement of distribution channels
2026 Outlook
  • As the market enters early 2026, the sector continues to benefit from resilient consumer demand.
  • At the same time, geopolitical uncertainty and evolving trade policies remain important areas of focus.
  • Companies with strong margins, diversified supply chains and flexible cost structures are best positioned to manage these pressures and capitalize on long-term consumer interest.
How Hexagon Can Help?

Hexagon’s M&A team has experience in the outdoor & recreation sectors. We help businesses:

  • Prepare for Sale: Position your company to attract the right buyers.
  • Raise Capital: Assist with capital-raising efforts.
  • Market Insights: Provide up-to-date M&A market trends.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Tyler Dale, Managing Director: tdale@hexagoncapitalalliance.com

Brennan Anderson, Vice President: [email protected]

 

Market Monitor: Apparel, Accessories & Footwear

Market Monitor: Apparel, Accessories & Footwear

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Market Monitor:
Apparel, Accessories & Footwear

Industry M&A Update

The Apparel, Accessories & Footwear M&A Market Monitor provides a data-driven overview of merger and acquisition activity, buyer behavior, private equity trends, and market conditions shaping the sector in 2025 and the outlook for 2026.

 

M&A activity in 2025 faced headwinds related to tariff uncertainty and broader economic pressures. Despite these challenges, strategic buyers and financial sponsors continued to demonstrate sustained interest in the sector. Market indicators suggest a potential increase in transaction activity in 2026 as financing conditions improve and investor appetite strengthens.

 

2025 Industry Observations
  • M&A activity moderated amid tariff uncertainty and macroeconomic pressures
  • Strategic buyers and financial sponsors maintained active interest in acquisition opportunities
  • Private equity groups increasingly prioritized add-on acquisitions, rising approximately 33.3% year over year
  • Sponsors remain well positioned to deploy capital, supported by available dry powder
2026 Market Outlook
  • Sector rotation is contributing to improved public market valuations
  • Private equity add-on activity is expected to remain supported by available capital
  • Declining interest rates may improve acquisition financing conditions
  • Consumer spending trends may support revenue stability and growth
  • Strategic buyers may reprioritize acquisitions after navigating tariff impacts
How Hexagon Can Help?

Hexagon’s M&A team has experience in the apparel, accessories, and footwear sectors. We help businesses:

  • Prepare for Sale: Position your company to attract the right buyers.
  • Raise Capital: Assist with capital-raising efforts.
  • Market Insights: Provide up-to-date M&A market trends.

For more information or questions,  please contact our contributors:

Rich Anderson, Managing Director: [email protected]

Tyler Dale, Managing Director: tdale@hexagoncapitalalliance.com

Brennan Anderson, Senior Vice President: banderson@hexagoncapitalalliance.com

Market Monitor: Healthcare

Market Monitor: Healthcare

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Market Monitor: Healthcare

M&A Volume Declines Year-over-Year

  • Through July 2025, there were 311 U.S. healthcare services M&A transactions, a 23.8% decrease compared to the same period in 2024.

  • Despite the overall slowdown, two segments stood out:

    • Home Health & Hospice – benefitting from Medicare Advantage growth and CMS tailwinds related to coverage and reimbursement increases.

    • Veterinary Services – continues to attract investors as the sector faces less regulatory scrutiny than other provider roll-ups.

Valuation Multiples Remain Strong

  • Median EV/EBITDA multiples for publicly traded healthcare services companies rose from 12.3x to 13.2x since the start of 2025.

  • This increase underscores sustained investor appetite for the healthcare sector, even amid reduced transaction volume.

Signs of a Rebound Ahead

The healthcare services sector remains relatively insulated from consumer spending shifts. Several M&A catalysts are expected to drive activity in the second half of 2025:

  • Accelerated adoption of innovative care technologies

  • A more stable interest rate environment

  • Supportive market fundamentals

  • Abundant dry powder from private equity and strategic buyers

If you have any questions, please contact our Healthcare Services team:

Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.com

Brad Erhart, Director: berhart@hexagoncapitalalliance.com

Market Monitor: Baked Goods

Market Monitor: Baked Goods

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Market Monitor: Baked Goods

Even with challenges from new tariff rules and changes in government regulations, mergers and acquisitions in the baked goods sector continue to grow. The pace of activity in this market is now ahead of the larger food and beverage industry.

Private Equity Firms Continue to Buy in a Fragmented Market

Because the baked goods industry is made up of many smaller businesses, it has become a focus for private equity firms looking to expand. Some of the most active buyers include:

These companies are steadily increasing their presence through acquisitions.

Valuation Multiples Rise by 12%

Publicly traded baked goods companies have seen their valuation multiples grow by 12 percent since the beginning of the year. These companies are now valued higher than others in the consumer packaged goods sector.

One Equity Partners Acquires CraftMark Bakery

In March 2025, One Equity Partners announced the acquisition of CraftMark Bakery, an Indianapolis-based manufacturer of frozen baked goods, from CIC Partners. CraftMark produces cookie dough, muffins, breads, and flatbreads for quick service restaurants and retail bakeries. With a large automated facility and over 400 employees, the company strengthens OEP’s position in the growing frozen bakery and foodservice markets.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Banker Insights: Autism Treatment

M&A heating up again- Autism treatment sector

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Private Equity Interest in ABA Businesses Is Growing

If you own an ABA business, you’ve likely seen an increase in interest from private equity firms. After a few quieter years, the ABA market is seeing renewed momentum

Why PE Firms Are Re-Entering the ABA Space

Private equity investors are shifting their view of the industry. Early concerns from high-profile failures  like CARD/Blackstone, Kadiant/TPG, and Elemy  are now seen as outliers. The sector is maturing, and the demand for autism services continues to rise.

Middle-Market Investors Lead the Charge

Unlike past cycles dominated by large-cap firms, today’s activity is driven by middle-market healthcare investors. These groups see opportunity in helping strong ABA providers scale to meet growing needs.

Challenges Remain — But So Does Opportunity

Labor shortages and insurance reimbursement pressures persist. Still, investors recognize the potential in best-in-class ABA companies that can grow efficiently and deliver quality care.

Recent ABA M&A Activity

  • May 2025: Alongside ABA Acquires San Diego ABA
    Backed by Fletch Equity, Alongside ABA expanded with acquisitions in Los Angeles and San Diego.

  • May 2025: Behavior Frontiers Sold to NexPhase Capital
    Operating in 12 states, Behavior Frontiers transitioned from Lorient Capital to NexPhase Capital.

  • March 2025: Unison Therapy Sold to Ascend Partners & Autism Impact Fund
    A multi-service provider, Unison was previously backed by Ridgemont Equity Partners.

Now may be the right time to explore your options. With investor interest rising, strong ABA providers are well-positioned for strategic growth or sale.

For more information or questions, please contact the Healthcare Services team:

Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.com

Brad Erhart, Director: berhart@hexagoncapitalalliance.com

Banker Insights: Home Infusion & Specialty Pharmacy

Home INfusion & Specialty pharmacy

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NHIA 2025 Conference

Recent Conference Insights

Our Healthcare Investment Banking team recently attended the NHIA ’25 Conference in Washington DC, where we had the chance to reconnect with numerous clients, investors, and industry leaders in the Home Infusion and Specialty Pharmacy space.  With the Asembia Conference in Las Vegas coming up at the end of the month, we are seeing a noticeable increase in interest from Private Equity firms in this area of the healthcare ecosystem.

What’s Driving This M&A Activity? 

Shift in Care Settings: There’s increasing pressure from payers to move patients from hospital-based infusion centers to home or Ambulatory Infusion Centers.

Pipeline of Specialty Infusion Drugs: A high number of specialty infusion pharmaceuticals are progressing through the FDA approval process, creating new opportunities in the market.

Private Equity Activity: After a slower couple of years, many investors are pressuring their Private Equity firms to put money to work and take action.

For more information or questions, please contact the Healthcare Services team:

Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.com

Brad Erhart, Director: berhart@hexagoncapitalalliance.com

Banker Insights: Substance Abuse Disorder Industry

Positive M&A Outlook- substance abuse disorder industry

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Recent Conference Insights

Our Healthcare Investment Banking team recently attended the 2025 Treatment Center Investment East Conference, where we had the opportunity to connect with leading investors, operators, and stakeholders across the Substance Use Disorder (SUD) treatment landscape. As we head further into 2025, we are seeing sustained investor interest in behavioral health, particularly in scalable, outcomes-driven treatment models.

Key Market Drivers Supporting Investor Interest

Rising Demand for Behavioral Health Services: Increased public awareness and ongoing efforts to reduce stigma around mental health and addiction continue to drive demand for comprehensive SUD treatment.

Favorable Reimbursement Environment: Investors remain drawn to providers with proven clinical outcomes and strong payer relationships, supported by stable reimbursement structures.

Market Fragmentation: Despite growing consolidation, the SUD space remains highly fragmented, offering significant opportunity for platforms to scale via add-on acquisitions and regional expansion.

Regulatory Tailwinds: Enhanced government funding and policy focus on combatting the opioid crisis continue to provide long-term support for providers and drive investment activity.

For more information or questions, please contact the Healthcare Services team:

Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.com

Brad Erhart, Director: berhart@hexagoncapitalalliance.com

Market Monitor: Food & Beverage

Market Monitor: Food & Beverage

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Market Monitor: Food & Beverage

U.S. Food & Beverage M&A Activity in 2024

In 2024, the U.S. Food & Beverage industry saw 347 M&A transactions, marking an 8.4% increase in volume compared to 2023. This growth signals the continued strength of the sector despite broader economic conditions.

Non-Alcoholic Beverage Market Driving Investment Activity

With the global non-alcoholic beverage market projected to double over the next decade, several significant transactions have made headlines. Notable deals include:

  • PepsiCo’s acquisition of Poppi

  • Celsius’ acquisition of Alani Nu

  • Molson Coors’ majority stake in ZOA Energy

  • Keurig Dr Pepper’s acquisition of GHOST

  • Gryphon Investors’ majority investment in Spindrift

These high-profile deals reflect the growing investment potential in the non-alcoholic beverage market.

A Resilient Investment Opportunity in the Baked Goods Sector

The baked goods sector, a consistent staple of the American diet, remains highly attractive to investors, particularly in the private equity space. The sector is generally insulated from economic downturns, making it a steady investment target. Recent significant transactions include:

  • One Equity Partners’ acquisition of CraftMark Bakery

  • Platinum Equity and Butterfly Equity’s joint acquisition of Rise Baking

  • QualiTech’s (MidOcean Partners) acquisition of Ellison Bakery

These deals indicate ongoing investor interest in the baked goods industry.

Food & Beverage Contract Manufacturing Remains Attractive

Food & Beverage contract manufacturing companies continue to be highly sought after, as acquirers look to expand their production capabilities, enter high-growth product categories, and diversify their customer bases. Recent notable transactions include:

  • Falfurrias’ acquisition of Snak King

  • TruFood and Bar Bakers merging to form Tandem Foods

  • Clayton, Dubilier & Rice’s acquisition of Shearer’s Foods

These transactions showcase the increasing demand for manufacturing capabilities within the food and beverage sector.

Looking Ahead: M&A Activity in the Second Half of 2025

While M&A transaction volume in early 2025 has been slower, as is typical in the first 100 days of a new administration, the market is expected to gain momentum as President Trump’s tariff policies stabilize. Several factors suggest a more active M&A market in the second half of the year, providing new opportunities for growth and investment in the food and beverage sector.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com