Question 1

What does a behavioral health acquisition attorney do?

Accepted Answer

A behavioral health acquisition attorney handles the legal and regulatory side of buying or selling a licensed treatment program, including IOP, PHP, residential treatment, ABA therapy, and MAT clinics. That includes the change of ownership (CHOW) filing with the state licensing board, license transfer, Medicaid and payer contract assignment, successor liability review, and the purchase agreement itself. Managing Partner Alex Lubyansky leads every Acquisition Stars behavioral health transaction personally.

Question 2

How does a change of ownership (CHOW) work for a licensed behavioral health practice?

Accepted Answer

CHOW requirements vary by state and by license type, so confirm the exact process with your state's licensing board early. Many states require board approval of the change of ownership before or shortly after closing, and some require a new license application rather than a transfer. Minnesota, for example, licenses many IOP programs under DHS rule 245G, with its own change of ownership and reporting steps. We map the applicable state process before you sign a letter of intent so the closing timeline reflects the real licensing timeline, not just the deal timeline.

Question 3

What happens to Medicaid and payer contracts when a behavioral health practice changes hands?

Accepted Answer

Medicaid enrollment and commercial payer contracts generally do not transfer automatically with the sale. Depending on the deal structure and the state, the buyer may need a new Medicaid enrollment, a change of ownership notification, or payer re-credentialing, any of which can interrupt reimbursement if it is not planned into the closing timeline. We build payer contract continuity into the purchase agreement and closing schedule.

Question 4

What is successor liability, and why does it matter in a behavioral health acquisition?

Accepted Answer

Successor liability is the risk that a buyer inherits a seller's regulatory violations, licensing deficiencies, or billing exposure after closing, particularly when the deal is structured as an asset purchase of a licensed operation. Missing this in diligence is expensive. Alex Lubyansky has put it this way: "It's legal issues that could have been fixed for thousands of dollars. Instead they cost millions in valuation." An expired or lapsed license is one of the most common examples. We review prior survey findings, corrective action plans, and billing history, and allocate that risk in the purchase agreement before closing.

Question 5

Do you handle ABA therapy and MAT clinic acquisitions specifically?

Accepted Answer

Yes. ABA therapy practices and MAT clinics carry their own licensing considerations, and MAT clinics add DEA registration review on top of the standard behavioral health CHOW process. We handle acquisition counsel for both, coordinating license and DEA registration transfer review alongside the purchase agreement and payer contract assignment.

Question 6

What does Acquisition Stars handle for behavioral health m&a legal services matters?

Accepted Answer

Acquisition Stars represents buyers and sellers across the full deal lifecycle: preliminary structuring, letter of intent, due diligence, definitive agreement negotiation, and closing mechanics. The firm handles change of ownership (chow) filings and coordination with state behavioral health licensing boards, state licensure transfer for iop, php, residential treatment, aba therapy, and mat clinics, medicaid and commercial payer contract assignment and re-enrollment coordination, among other transaction work. Alex Lubyansky leads every engagement.

Question 7

Who does Acquisition Stars typically represent in behavioral health m&a legal services engagements?

Accepted Answer

The firm represents iop and php operators buying or selling a licensed treatment program, residential treatment center owners navigating a change of ownership, aba therapy practice owners consolidating or exiting, along with other parties involved in mid-market and lower-middle-market transactions. Engagements range from single-buyer acquisitions to multi-party recapitalizations.

Question 8

Does the firm represent clients outside Michigan?

Accepted Answer

Yes. While the firm office is in Novi, Michigan, Alex Lubyansky represents clients nationwide on M&A and securities transactions. Most engagements involve out-of-state buyers, sellers, or target companies. The firm regularly admits pro hac vice in other states when matters require it.

Question 9

Who will work on my deal?

Accepted Answer

Alex Lubyansky leads every engagement at Acquisition Stars. He sets the deal strategy, leads the negotiation, and runs closing, and every document is reviewed by him before it goes to the other side. An associate supports the work, including first drafts and diligence review. You will know who is doing what at each stage of the transaction.

Question 10

How does the firm price behavioral health m&a legal services engagements?

Accepted Answer

Pricing varies with deal size, complexity, and timeline, so Acquisition Stars does not publish a fee schedule. After a brief initial conversation about the deal specifics, the firm provides a written engagement scope, typically as a bundled engagement or with a not-to-exceed budget, so clients can plan the matter with confidence.

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