The autism treatment industry, once flush with investor enthusiasm and private equity capital, hit a hard reset in recent years. Following the investment boom of 2021 and 2022, the sector faced significant disruptions — including the bankruptcy of a major player, CARD, and widespread layoffs at companies like 360 Behavioral Health and Elemy. These challenges, along with a cooling economy, caused a slowdown in mergers and acquisitions (M\&A), signaling an overheated market. As we look ahead to autism investment trends 2024, the focus will likely shift towards sustainable growth and more cautious, strategic investments in the sector.
Now, the tide is turning.
Industry leaders and investment experts believe that the autism sector’s correction came at exactly the right time — and that the groundwork laid during the past 18 months of lower deal volume is beginning to pay off. According to Dexter Braff, founder and president of The Braff Group, this “reset” allowed the industry to reorient itself without drawing excessive scrutiny, thanks to the larger macroeconomic downturn happening at the same time. As Braff shared at the Behavioral Health Business’ Autism & Addiction Treatment Forum, “It happened when the market was flat and going down. So the autism market did what it needed to do to correct for some of the problems causing it to be a less interesting segment [to investors].”
This perfect storm — of industry-specific growing pains hidden within broader market challenges — gave the autism sector a unique chance to recalibrate. And now, early 2024 data is showing clear signs of a rebound. The first quarter of 2024 saw 12 autism-related M&A deals — the highest number since 2022, signaling that autism investment trends in 2024 are returning to a positive trajectory.
A Promising Start to 2024
In the first quarter of 2024, the autism treatment sector saw 12 completed M&A transactions — the highest number since 2022. That deal count, while modest compared to the frenzied activity of earlier years, signals a shift in investor sentiment. According to Braff, this re-emergence of deal flow isn’t just a blip. “Deal flow is back on the way up for autism and likely to stay that way,” he said. “The lull in that space will turn out to be one of the shortest lulls we’ve seen in the sector when it experiences a downturn.”
This resurgence is encouraging not just for autism-specific care providers but for the broader behavioral health ecosystem. While the past two years have been challenging, marked by inflation, rising interest rates, labor shortages, and general investor caution, 2024 appears to be a turning point. As autism investment trends in 2024 emerge stronger than ever, it is clear that investors are once again looking to capitalize on growth in this sector.
Behavioral Health Market: Signs of Thawing
The uptick in autism dealmaking is just one piece of a larger puzzle. The behavioral health industry as a whole is beginning to thaw after a period of subdued M&A activity. In fact, mental health care remains the most active segment within behavioral health. During Q1 of 2024, 27 mental health transactions were recorded — a number surpassed only once, during the record-setting fourth quarter of 2021.
However, these numbers require some context. A single buyer, Beacon Behavioral Health Partners, was responsible for 10 of those Q1 transactions. This skews the overall volume slightly, but it’s still an encouraging sign that confidence is returning to the market, particularly in scalable, outpatient-oriented segments.
While autism investment trends in 2024 are seeing a resurgence, other behavioral health sectors are also finding their footing. These macroeconomic shifts, including inflation and rising interest rates, are pushing investors to recalibrate their strategies and look toward the more stable growth options within autism care.
Substance Use Disorder: Realignment and Emerging Stars
While the SUD space isn’t experiencing the same level of dealmaking activity as mental health or autism, there are significant transformations occurring. High-end residential SUD programs, once a major draw for investors, have seen a decline in demand and investment. In contrast, outpatient SUD treatment programs are on the rise — offering more scalable, lower-cost solutions that align better with payer preferences and evolving consumer needs.
Perhaps the most notable development in this space is the rise of medication-assisted treatment (MAT) providers. MAT programs, which use FDA-approved medications in combination with counseling and behavioral therapies, are being increasingly favored by both public and private payers.
“From a spending standpoint of the federal government, state governments, and even individuals, an MAT program could be far, far, far cheaper than a residential,” Braff noted. With affordability, accessibility, and effectiveness aligning in MAT’s favor, this subsector is poised to become the new centerpiece of the SUD investment landscape.
The Changing Landscape of Autism Investment Trends 2024
As autism investment trends in 2024 continue to evolve, there’s a sense of optimism in the air. Investors are looking for scalable, accessible solutions, and autism care is no exception. Programs offering integrated therapies, early intervention, and multi-disciplinary approaches are expected to see the most growth as they provide a well-rounded and cost-effective option for families.
Economic Tailwinds on the Horizon
The behavioral health rebound isn’t happening in a vacuum. Several macroeconomic factors are aligning to support renewed investment activity. While inflation remains slightly above the Federal Reserve’s 2% target, the consumer price index has shown signs of steady improvement. Interest rates may remain elevated in the short term, but the stabilization of inflation is helping improve investor confidence.
Perhaps more importantly, private equity firms are nearing the end of their holding periods for many existing portfolio companies. This means that they’re under pressure to either exit those investments or reinvest capital — and behavioral health, especially segments like autism care and MAT, are once again becoming attractive targets. As these changes align with the current autism investment trends in 2024, private equity is in a prime position to step back into the market and fuel further growth.
“We are clearly seeing indications of a market in transition, moving back onto the upswing,” said Braff. “Private equity and all the buyers that sat in the sidelines have two years to make up for deals that weren’t done. If these trends hold, we’re looking forward to a really strong Q3 and Q4 and perhaps a breakout year.”
What to Expect in 2025 and Beyond
Looking ahead, industry insiders are optimistic that 2025 could be one of the strongest years for behavioral health M&A in recent memory — not quite at the peak of 2021, but far beyond the sluggish pace of 2023. The autism treatment industry, having undergone a difficult but necessary reset, is emerging leaner, smarter, and better aligned with both payer demands and patient needs.
Mental health providers who offer scalable outpatient services are also expected to continue drawing interest, while MAT providers in the SUD space may become the new “darlings” of the investment world.
For providers and operators in these sectors, this moment represents an opportunity to rethink strategic growth, operational efficiencies, and partnership potential. Those who have weathered the recent storms with stability and integrity may find themselves in a favorable position as capital begins flowing again.
Final Thoughts
After a period marked by both internal corrections and external pressures, the behavioral health industry is showing clear signs of life. The autism sector’s rebound is a bellwether for what may be a broader revitalization across mental health and substance use treatment segments. As autism investment trends in 2024 indicate, the sector is poised for sustained growth and interest.
For investors, providers, and strategic buyers, now is the time to pay attention. While 2021’s explosive growth may not be replicated, 2025 has all the makings of a strong, sustainable, and disciplined year of growth. And in behavioral health — an industry where clinical impact and financial viability must go hand-in-hand — that’s exactly the kind of reset the market needed.
