The behavioral health and counseling services sector, including ABA services and psychiatry, is entering what could be its most significant year yet — not just in terms of volume of deals, but in investment interest, valuation strength, and strategic buyer sophistication. After a strong 2025, the outlook for behavioral health practice owners in 2026 suggests a unique convergence of macroeconomic forces, healthcare industry trends, and buyer demand that could translate into meaningfully higher sale prices and better deal terms than in recent years.
In this post, we’ll explain:
- Why 2026 is shaping up to be a turning point for the sector
- What buyers are actually looking for
- Typical valuation multiples for counseling, psychiatry, and other behavioral health practices today
- Key moves owners should make now if they’re considering selling or partnering
If you have questions as you’re reviewing this information, feel free to reach out to Managing Director, Hannah Huke, hannah@evergreenforfounders.com.
1. Healthcare M&A Is Poised for a Comeback — and Behavioral Health Is a Core Target
After a period of caution in parts of 2024 and 2025, healthcare dealmaking, especially in services, is projected to grow in both value and volume in 2026 — driven by more stable capital markets, disciplined investment strategies, and strong interest in lower-acuity care segments like behavioral health.
According to PwC’s 2026 Health Services Deals Outlook, investors and strategic buyers are returning to the market, particularly for assets that demonstrate consistent earnings and measurable operational upside. Behavioral health, physician specialties, and tech-enabled provider platforms are singled out as sectors likely to attract the strongest interest.
Executives at large healthcare organizations also see M&A and partnerships as a priority for 2026 amidst broader industry uncertainty and transformation pressures (Forbes Healthcare Industry Outlook, 2026).
2. What Buyers Are Really Looking For in 2026
If you’re thinking about selling — or want your practice to be attractive to strategic acquirers — there are a handful of traits that buyers are prioritizing:
- Predictable, Recurring Revenue
Buyers prize models with consistent patient acquisition and retention, high margin treatments like Spravato and TMS, and practice's ability to retain top providers with a steady patient base.
- High Quality of Earnings & Clean Operations
Strong documentation, clean financials, consistent billing practices, consistent growth, and stable clinician utilization all reduce buyer diligence risk and often increase multiple.
A balanced mix of commercial payers, Medicare, and cash/concierge revenue mitigates reimbursement risk and can broaden buyer appeal. Some buyers only seek out in network practices - and having clinicians credentialed in a wide scope of panels is best.
Whether it’s an EMR setup, telehealth platform, or data analytics tracking patient outcomes, and/or highly effective marketing and advertising for patient acquisition, tech systems signal scalability.
- Staff and Clinical Stability
Low clinician turnover and formalized clinician retention strategies are often table stakes. A stable team of W2 over 1099 contractors is preferred. Buyers don’t want to buy revenue that disappears with a departing clinician. Further, you want provider concentration to be minimal - there is a lot of risk from a buyer's perspective if you have only one or two providers with the lion share of patients.
3. Valuation Guide: What Behavioral Health Practices Are Actually Selling For in 2026
Valuations vary significantly based on size, growth trajectory, geography, and strategic fit. Based on market intel and current deal trends, here’s a clear snapshot of typical EBITDA multiples you might expect:
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EBITDA Range
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Typical Multiple
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Notes
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<$1M EBITDA
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4x–6x
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Smaller practices with limited tech, concentrated payer risk, or owner-dependent earnings.
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$1M–$2M EBITDA
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5x–9x
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Most competitive band — established revenue with room to scale and cleaner systems.
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>$2M EBITDA
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8x+
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Best performing, scalable practices with tech integration, telehealth, diversified payers, and recurring models.
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Important: These multiples aren’t guarantees — they reflect what buyers are currently willing to pay for strong operating profiles and there are multiple factors that contribute to valuations. Practices that lack clarity in operations or appear owner-dependent will cluster at the lower end of these ranges.
4. Strategic Timing Matters — 2026 Could Be a Sweet Spot
With macro trends pushing toward higher M&A velocity, 2026 might give owners more leverage in negotiations — particularly owners who have prepared their practices well (e.g., leadership that wants to stay on, a great team and culture, documented growth strategies, and clear financials showing momentum).
Here’s why 2026 could be special:
- Capital markets are stabilizing, reducing execution risk for buyers and sellers.
- Buyers are competing more for quality assets, not just the biggest ones.
- Major consolidation with buyers has not yet occurred like it has in other industries and sectors, which means more competition for buyers and higher valuations.
5. What Practice Owners Should Do Right Now
If you’re serious about exploring options in 2026 — whether growth capital, partial liquidity, or full sale, start getting prepared sooner than later:
- Get Your Financials in Order
Clean books, organized P&Ls, clear referral tracking, and error-free billing records make your practice easier to sell and help reduce valuation discounts.
Buyers invest in potential, not just current earnings. Articulate your growth strategy, track referral pipelines, and compile care impact and the power of your brand.
- Engage Early with Advisors
Experienced advisors help benchmark your practice, identify deal timing, and manage competitive dynamics, all while unlocking premium outcomes. The team at Evergreen can advise on things to start doing now and come up with the best strategy to achieve your goals. Further, we can start to formulate your growth story in a way that when you do go to market, you'll attract only high quality buyers to the table that bring premium offers.
Conclusion: 2026 — A Strategic Inflection Point
Healthcare’s 2026 outlook may be mixed overall, with regulatory uncertainty and workforce pressures, but for behavioral health, psychiatry, and counseling practices, the balance of forces is tilted toward demand, differentiation, and higher valuations (EY Healthcare Sector Outlook, 2026).
If you’re contemplating a transaction, or want to understand what your options might be, preparation separates the leaders from the lookers. Practices that align with buyer priorities are poised to command the best multiples and secure the most favorable deal terms.
Contact Us
If you’d like to learn more about the current M&A market for behavioral health practices, feel free to reach out to Managing Director, Hannah Huke, hannah@evergreenforfounders.com.