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:
If you have questions as you’re reviewing this information, feel free to reach out to Managing Director, Hannah Huke, hannah@evergreenforfounders.com.
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).
Across the healthcare ecosystem, artificial intelligence (AI) is dismantling long-standing operational bottlenecks — from administrative workflows to patient engagement — and emerging as a core determinant of value in 2026.
Why this matters for practice owners:
Buyers are increasingly assigning valuation premiums to practices that can demonstrate real efficiency gains from technology and AI — not just buzzwords (PwC).
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:
Buyers prize models with ongoing counseling subscriptions, recurring treatments, care bundles, chronic care management revenue, or telehealth contracts, as these reduce risk and stabilize EBITDA forecasts.
Strong documentation, clean financials, consistent billing practices, 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 broadens buyer appeal.
Whether it’s an advanced EMR setup, telehealth platform, or data analytics tracking patient outcomes, tech systems signal scalability — and buyers pay for scalability.
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.
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:
|
EBITDA Range |
Typical Multiple |
Notes |
|
<$1M EBITDA |
4x–6x |
Smaller practices with limited tech, concentrated payer risk, or owner-dependent earnings. |
|
$1M–$2M EBITDA |
5x–9x |
Most competitive band — established revenue with room to scale and cleaner systems. |
|
>$2M EBITDA |
8x+ |
Best performing, scalable practices with tech integration, telehealth, diversified payers, and recurring models. |
Important: These multiples aren’t guarantees — they reflect what buyers are currently willing to pay for strong operating profiles. Practices that lack clarity in operations or appear owner-dependent will cluster at the lower end of these ranges.
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., technology integration, documented growth strategies, and clear financials).
Here’s why 2026 could be special:
If you’re serious about exploring options in 2026 — whether growth capital, partial liquidity, or full sale — treat this as a strategic project, not an event:
Clean books, organized P&Ls, and error-free billing records make your practice easier to sell and help reduce valuation discounts.
Invest in recurring revenue models and measurable clinical outcomes; buyers value predictability above all.
AI-ready systems and integrated platforms reduce operating friction and enhance valuation.
Buyers invest in potential — not just current earnings. Articulate your growth strategy, track referral pipelines, and compile care impact.
Experienced advisors help benchmark your practice, identify deal timing, and manage competitive dynamics, all while unlocking premium outcomes.
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 (predictable revenue, tech-enabled delivery, diversified payers, and operational excellence) are poised to command the best multiples and secure the most favorable deal terms.
2026 might just be your best opportunity yet.
Contact Us
If you’d like to learn more about the current M&A market for behavioral health, feel free to reach out to Managing Director, Hannah Huke, hannah@evergreenforfounders.com.