Donovan, Strode Comment on Findings of Healthcare M&A Report

Partners Chris Donovan and Roger Strode were quoted in a Behavioral Healthcare Executive article, “Report: M&A Activity Slows in Q4, but Interest in Autism Remains Strong,” about a report showing that merger and acquisition activity for the behavioral healthcare sector in the fourth quarter of 2019 was down compared to the previous quarter and the same period in 2018.

Strode said that a lack of staffing and depth in the managerial ranks makes the autism sector “an industry ripe for the picking and very attractive to private equity firms.”

Donovan said he expects that a significant portion of investment money raised will be used to implement outcome-producing investments. “If you look at it as a three-inning game, with inning one being the acquisition of a platform and inning two being rollups and expansion, I think inning three is going to be more improving on the quality and results of the treatment that a PE platform company can demonstrate,” he said.