IN THE NEWS

What Buyers Value in Today's Behavioral Health M&A Market

Published October 7th 2025

Volume 12, Issue 20, October 7, 2025

By: Connor Cruse, CM&AA


I just returned from the East Coast Symposium, and the conversations there confirmed what I hear every week in my M&A advisory work: buyers are actively searching for the right behavioral health opportunities. The Symposium always offers valuable insights, not only through the panels and presentations but also in the informal discussions with providers, payors, and investors who are navigating the same pressures and possibilities shaping the field.

What stood out this year was the sense of urgency. Demand for services is growing, regulations continue to evolve, and payors are recalibrating their strategies. For buyers, that mix creates both opportunity and risk. For providers, it means that understanding what buyers really want — and how to position your business accordingly — has never been more important.

At VERTESS, we work with behavioral health organizations every day to answer those very questions. What do buyers value most? How do you prepare for a potential sale while continuing to focus on delivering high-quality care and support? And how can you ensure that your mission remains front and center, even as market forces necessitate and accelerate change?

The reality is that no two transactions look exactly alike. But across countless conversations with financial investors and strategic acquirers, consistent themes have emerged. They provide a clear roadmap for providers who want to maximize both their impact and their value.

Payor mix is power

Every provider knows the importance of payor relationships, and buyers think the same way. A diversified mix of payors signals stability and reduces vulnerability to sudden policy changes.  

Buyers still prioritize commercial payors for margin strength, but they are also looking closely at how providers manage reimbursement across the board. Over the past year, labor costs have largely stabilized and policy shifts have created a more favorable reimbursement environment, which has boosted interest in balanced portfolios. What stands out isn't just the percentages, but the strategy: the ability to navigate contracts, protect margins, and adapt when conditions (inevitably) change.

Scale and reach

Multi-site organizations are especially appealing to buyers. Operating across several facilities demonstrates scalability and market penetration, and it gives buyers a platform to grow without starting from scratch. Facilities in urban centers with rising demand for mental health services are highly attractive, but so too are opportunities in underserved areas where outpatient demand is growing.

What matters most isn't simply having more locations. In other words, quantity isn't just the name of the game. It's having a replicable model. Buyers want to know that success in one market can be extended into another, and that outcomes will remain consistent as the footprint expands.

In-network advantage

In conversations with buyers, one theme is crystal clear: In-network is in favor. While there are still investors willing to take on the risks of out-of-network models, most buyers now prefer the predictability of in-network contracts. They offer stable reimbursements, broader patient access, and closer alignment with payor preferences for cost-efficient care.

Parity laws and telehealth adoption have only strengthened this dynamic. For strategic acquirers like health systems, in-network status is not just a revenue driver but a pathway into integrated care models.

Strong payor relationships don't just reduce risk. They expand opportunity.

Reimbursement strength

High reimbursement rates are always welcome, but what really makes buyers take notice are contracts tied to value and outcomes. Bundled payments, quality-based metrics, and negotiated rates that reflect strong performance signal operational discipline and payor trust.

Outpatient programs that prove their ability to reduce higher-cost inpatient utilization are especially appealing. They connect two of the buyer's top concerns — financial prudence and clinical effectiveness — in a single story.

Visibility and reputation

In today's behavioral health market, visibility matters a lot. Buyers are drawn to organizations with strong referral networks, whether with hospitals, primary care physicians, schools, or community partners. These relationships are not easily replicated, which makes them valuable in the eyes of investors.

Equally important is digital presence. Providers with strong online reputations, outcome-driven marketing, and a recognizable brand are better positioned to attract patients and maintain client volume after a sale. Buyers know that reputation is both a growth engine and a shield against risk.

Financial story

Yes, buyers still pore over EBITDA, margins, and revenue growth. Stable financial performance reduces risk and makes a business easier to value. But increasingly, buyers are pairing financial metrics with qualitative factors, like market perception, clinical outcomes, and brand reputation.

A strong bottom line is important, but it's the balance of financial health and clinical credibility that's commanding the highest valuations. Buyers want to know not just that a behavioral health provider is performing well today, but that the foundation is strong enough to perform tomorrow.

The quality factor

Quality of care remains a significant differentiator. Buyers want proof of outcomes: data, testimonials, accreditation, and third-party audits that demonstrate patients are getting better. Providers with specialized programs — whether in addiction, eating disorders, or other high-need areas — that show measurable results often generate the strongest buyer interest.

In an industry steadily moving toward value-based care, clinical quality is not just a mission imperative. It is the business case.

What This Means for Your Behavioral Health Business

The behavioral health market is evolving quickly. Conferences like the East Coast Symposium highlight both the excitement and the challenges ahead: rising demand, shifting reimbursement, new expectations from payors, and growing pressure to deliver results.

For owners of behavioral health business, positioning for success — and for a potential sale — isn't just about checking boxes on a diligence list (although this is important). It's about building a business with staying power: diversified payor relationships, scalable operations, solid reimbursements, trusted referral networks, financial strength, and proven clinical outcomes.

The good news? Buyers are looking. And with the right preparation, your behavioral health business can stand out in a crowded field.

VERTESS helps behavioral health providers think strategically about their future, strengthen their organization's value, and prepare for what comes next. If you'd like to discuss your business and what a potential sale could look like, I would welcome the opportunity to connect.


Connor Cruse

Connor Cruse, CM&AA

As a Managing Director at VERTESS, I advise founders, executives, and investors on mergers and acquisitions (M&A) within healthcare services, with a focus on Behavioral Health, Mental Health, Addiction Treatment, and Outpatient Services. I guide clients through the entire transaction lifecycle, from initial valuation and positioning to buyer outreach, diligence, and final negotiation, whether they’re preparing for a strategic exit, recapitalization, or acquisition.

My experience spans both sell-side and buy-side mandates, representing operators across the U.S., from specialized behavioral health providers to multi-site medical groups. My work is grounded in deep financial analysis, market intelligence, and a hands-on approach to every deal.

Prior to VERTESS, I held senior advisory roles at Iconic and Coast Group, where I built scalable M&A processes and closed complex transactions involving healthcare businesses and associated real estate. I also led business development initiatives, driving a strong pipeline of mandates and lasting relationships with private equity firms, strategics, and founders. I’m passionate about helping healthcare leaders unlock and realize the value they’ve built, whether that means a full exit or bringing on a capital partner. Every transaction is unique, and I strive to guide clients with clarity, strategy, and trust.

We can help you with more information on this and related topics. Contact us today!

Email Connor Cruse or Call: (949) 677-4632.

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