THE BUSINESS OF ADDICTION –
May 27, 2025 – Dealmaking in the addiction treatment space remains in a sustained lull, suggesting a deeper recalibration on the part of investors and operators in the space. “This slowdown will probably be a temporary correction and not one of gradual decline in the industry,” Michael Villarreal, CEO of California-based Tres Vistas Recovery, The addiction treatment segment is the prime and early example of investment in the behavioral health industry. But the overall appetite for dealmaking and investing in addiction treatment has changed and perhaps lessened, as perennial headwinds and new ones combine to push the industry in a new direction.
That’s not to say that all interest in the addiction treatment space has dried up. Data from multiple sources indicate that deals are still being completed in space and have slightly picked up in recent months.
