SARASOTA, Fla. – Addiction-Rep, a national mergers and acquisitions advisory firm specializing in addiction treatment and behavioral health facilities, reports that behavioral health dealmaking cooled in the first half of 2026, with closed transactions down roughly 20 percent from the same period a year earlier. Addiction and substance use disorder treatment saw the steepest pullback, with just eight facilities changing hands in the first six months of the year and only two in the second quarter, the lowest quarterly total on record. The slowdown follows a record 2025, when behavioral health M&A reached 104 transactions, up 42 percent from the prior year, according to published industry deal trackers.
The firm cautions owners against reading the pullback as weak demand. Private equity buyers and strategic operators still hold substantial uncommitted capital, but they have grown more selective, favoring facilities with a clean payer mix, documented length of stay, and a strong compliance record. For those owners, the window remains favorable: residential addiction treatment facilities are trading at 5x to 8x adjusted EBITDA with $5MM in EBITDA, with well-run multi-levels of care platforms commanding the top of that range and higher.
“Fewer deals are closing, but that is not the same as fewer buyers. The buyers are here and the capital is here. They are in-network, have a balanced payer mix, can run without the owner(s) being omnipresent, marketing, billing & EMR systems are flawless and a quality asset faces little competing supply,” said Jim Peake, President of Addiction-Rep. “The gap between an average outcome and a great one comes down to preparation. Clean financials, a documented payer mix, and a solid compliance record can move a valuation by a couple of multiple points or more.”
Reimbursements for behavioral health are becoming more difficult for many addiction treatment facilities. Addiction-Rep expects to see several entities expire in the remainder of 2026 due to the lack of income and patients.
Addiction-Rep maintains an active, confidential inventory of addiction treatment centers for sale across the United States, connecting qualified buyers with owners preparing to transition. The firm also publishes guidance on what determines a rehab’s valuation multiple to help owners understand where their facility stands before going to market.
While deal counts in the addiction and substance use disorder segment fell to multi-year lows through the first half of 2026, valuations for compliant, accredited facilities have remained resilient. Analysts expect health services M&A to steady through the balance of the year as buyers with clear demand and margin-expansion strategies continue to deploy capital into the highest-quality assets.
For rehab owners, the practical takeaway is timing and readiness. Facilities that address compliance gaps, stabilize leadership, and document earnings quality well ahead of a sale are consistently the ones that attract multiple bidders and close at stronger multiples.
About Addiction-Rep
Addiction-Rep is a national mergers and acquisitions advisory firm serving the addiction treatment and behavioral health industry. Led by president Jim Peake, the firm connects buyers and sellers of drug rehabs, detox facilities, residential programs, and outpatient treatment centers, and provides valuation, marketing, and transaction guidance to owners and investors. Addiction-Rep is based in Sarasota, Florida. Brokerage services are provided through eXp Commercial, LLC. Learn more at addiction-rep.com.
Media Contact
Name
Addiction-Rep
Contact name
Jim Peake
Contact phone
(941) 300-1354
City
Sarasota
State
Florida
Zip
34239
Country
United States
Url
https://addiction-rep.com/
