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Positive M&A Outlook- substance abuse disorder industry

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