The Rise of Private Equity in ABA: What Families and Professionals Should Know

July 17, 2025

Alyson Shaffer M.Ed. BCBA Owner

Over the past decade, the field of Applied Behavior Analysis (ABA) has seen explosive growth. As autism diagnoses have increased, so has the demand for quality services—and with that demand has come a surge of financial interest from outside the clinical world. Private equity firms have taken notice and are buying up ABA companies across the country at a rapid pace. But what does this mean for the families who rely on these services and the professionals who provide them?

What Is Private Equity—and Why Are They Interested in ABA?

Private equity (PE) firms invest in companies with the goal of improving profitability and then selling them for a higher return. ABA companies have become attractive targets for PE investors for several reasons:

Steady demand: With 1 in 36 children now diagnosed with autism in the U.S., ABA services are in high demand.
Insurance funding: Most states mandate insurance coverage for ABA, creating a reliable revenue stream.
Fragmented market: Many small, independent providers make the field ripe for consolidation.

To an investor, ABA looks like a promising opportunity for growth and profit. But healthcare—and especially autism treatment—is not like other industries. Families aren’t looking for the fastest-growing company; they’re looking for consistent, ethical, child-centered care.

The Good: Resources, Expansion, and Infrastructure

Not all private equity involvement is negative. In some cases, PE-backed ABA companies have brought much-needed resources to the table:

Improved technology and systems: Larger organizations can invest in digital data collection, scheduling platforms, and outcome tracking systems that smaller providers may struggle to afford.
Expansion of services: PE investment can fuel geographic expansion, allowing underserved communities to gain access to care.
Training and development: Some PE firms prioritize clinician training, onboarding systems, and professional development, improving the experience for staff and clients.

When done ethically, private equity can provide support and structure that helps a high-quality ABA practice grow sustainably.

The Risks: Profit Over People

However, many families and professionals are raising concerns about how profit-driven motives can clash with the values of ethical, individualized care. Here are some of the major risks:

Pressure to increase billable hours: Some PE-owned ABA companies have been accused of encouraging clinicians to prioritize quantity over quality—pressuring staff to hit productivity targets that may not align with what a child actually needs.
High staff turnover: When cost-cutting becomes the priority, salaries, benefits, and caseloads can suffer. Burnout and turnover among RBTs and BCBAs can have a direct impact on the consistency and effectiveness of care.
Reduced clinical autonomy: Decision-making that was once left to clinicians may now be directed by corporate leadership without a background in ABA or autism.
Short-term goals: Private equity often works on a 3- to 5-year cycle. The goal is to grow quickly and sell—sometimes without regard for long-term client relationships or community presence.
Promising fields of grandeur: Private equity often offers what looks like a “grass is greener on the other side,” opportunity to many young BCBA’s who are in the field to make as much money as they can and just collect titles to their names.

What Can Families Do?

If you’re a parent or caregiver of a child receiving ABA services, here are a few tips:

Ask questions: Don’t be afraid to ask who owns the ABA company, how decisions are made, and whether clinicians have autonomy in treatment planning.
Look for transparency: A trustworthy organization will be open about its ownership structure, values, and how it handles ethical concerns.
Watch for red flags: High staff turnover, abrupt changes in programming, or a sudden shift to longer or more frequent sessions without clear clinical justification may warrant a deeper look.
Required to do 30 or 40 hours of ABA: Private equity firms will often not even work with families who refuse to do at least 30 hours of ABA. Not all learners need 30 hours! You do not have to agree to this many hours.
Look for a company who works with children after the age of 6: Autism does not end at the age of 6! Many PE firms only want to work with younger learners because they can request more hours and bill more to the insurance company. They don’t care what happens to your child after the age of 6. Autism is a lifelong condition; it isn’t something your child will grow out of.

What Should Professionals Know?

Clinicians working in ABA should stay informed, too. When considering employment or partnerships:

Research ownership and culture: Learn whether the company is PE-backed and how that impacts workplace expectations.
Know your ethics: Remember that BCBAs are bound by the BACB Ethics Code, regardless of who signs their paycheck.
Speak up: If you feel that clinical integrity is being compromised, document your concerns and consider whether your values align with the organization.

The Bottom Line

ABA is a science—and a deeply personal service. It’s built on relationships, trust, and individualized support. While private equity can bring operational improvements and financial stability, families and professionals must remain vigilant. The heart of ABA must stay focused on what matters most: helping individuals with autism reach their full potential in compassionate, ethical, and effective ways. Parents do your research and ask questions! Bottom line, go with what your heart tells you is the right place for your child! A parent’s instinct is typically right.

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