Industry Focus
Pediatric behavioral health is a high-growth, underserved segment: insurance reforms and telehealth have driven a 40% jump in visits since 2019 (see chart: Pediatric Behavioral Health Visits 2019–2024), yet independent clinics haven’t kept pace. This fragmentation, compounded by rising administrative costs and retiring owners, means many families face long delays for care. PediaMind targets this gap with a search-fund approach: we “search” for one well-run clinic to become our platform, apply centralized operations and clinical best practices to improve its performance, and then use that foundation to access bolt-on acquisition opportunities. By focusing here first, we can rapidly increase access, enhance quality, and create attractive returns for investors.
Source: Capstone Partners, Pediatric Behavioral Health Services Sector Update, January 2024
Investor Value Proposition
PE deals in pediatric behavioral health rose from 2 in 2018 to 6 in 2024, showing growing market interest (see chart: PE-Backed Roll-Ups). PediaMind uses a search-fund model to acquire one strong “platform” clinic, improve its operations through centralized services and optimized contracts, and then pursue bolt-on acquisitions. This staged approach reduces risk and targets annualized IRRs of 25–32%.
Source: Capstone Partners, Pediatric Behavioral Health Services Sector Update, January 2024
Seller Value Proposition
Clinic owners can now sell at 4–7× EBITDA, reflecting strong market demand. PediaMind offers full buyouts with clear, straightforward terms and a structured transition process. We work closely with your team to maintain the practice’s culture and standards, ensuring patients continue to receive the same quality of care.
Our Acquisition Criteria
PediaMind looks for pediatric behavioral-health practices generating between $5 million - $15 million in recurring annual revenue with at least a $1.5 million - $5 million EBITDA, a balanced mix of commercial, Medicaid, and private-pay reimbursement, and an owner-operator or established management team open to partnership. We focus on suburban and tertiary markets where demand outstrips supply.
