30 July 2025
In our new sector-specific blog series, we’ll be speaking with our experts to share deeper insights into the key sectors we operate in – starting with the dynamic global healthcare market.
Driven by evolving patient needs, pressures on public health systems, and the search for latest breakthroughs and innovations, M&A activity remains prevalent in the healthcare sector.
Tim Brind, Translink Corporate Finance UK Director and head of the firm’s Healthcare sector-focussed group, shares his insights on the main trends shaping healthcare M&A globally, and in the UK. He highlights where the biggest opportunities will lie in 2025 and beyond.
What are the most significant M&A trends currently shaping the global healthcare sector, and how is the UK market responding?
Healthcare M&A continues to thrive globally, with private equity (PE) playing a pivotal role, sponsoring between a third and a half of all deals, depending on the geographic region.
With global demographic trends driving sustained demand for medical services, pharmaceuticals, and elderly care, the sector is highly attractive, particularly to PE with significant ‘dry powder’ to deploy.
In the UK, a deep pool of mid-market PE funds exists, many of which specialise in healthcare or have a focus on the sector, who are actively deploying buy-and-build strategies. They’re targeting high-growth, fragmented healthcare providers – particularly those easing pressures on NHS capacity.
Technology is another major driver. The UK’s advanced Healthtech ecosystem is attracting both strategic and financial buyers, especially in areas like AI, digital diagnostics, and remote patient management.
Which healthcare sub-sectors are emerging as high-growth areas in 2025, and why?
Biotech remains a consistently high-growth area for M&A, as large pharmaceutical companies face looming patent expiries and look to bolster pipelines.
Interest is especially strong in oncology, rare diseases, and metabolic therapies. In this space, Contract Research Organisations (CROs) and Contract Development and Manufacturing Organisations (CDMOs) are thriving with ‘big pharma’ outsourcing development to accelerate timelines and reduce risk.
Digital health is also gaining traction. As health systems seek efficiencies, tech solutions are emerging across the care pathway – from virtual consultations and AI-driven diagnostics to wearable-enabled remote monitoring. These innovations ease system burden while creating scalable business models which are attracting significant interest from investors.
Mental health services are seeing a surge in demand. Post-COVID, there’s greater societal awareness, rising prevalence, and more employers investing in staff wellbeing. With NHS capacity stretched, private providers are stepping in. The market remains fragmented – making it ripe for consolidation and ideal for M&A.
What are the key value drivers for healthcare businesses today and how can owners best position themselves?
To achieve stronger valuations, businesses should, where possible, try and focus on:
Secure and Repeatable Revenues: Multi-year contracts with the NHS or insurers – or recurring revenue models like subscriptions – which offer predictable income streams, improved quality of earnings and reduce buyer risk.
Strong Regulatory Compliance: A well-governed business with robust compliance and audit trails is especially attractive to overseas acquirors unfamiliar with UK healthcare regulation.
Quality and Continuity of Leadership: Buyers place significant weight on management. An experienced and skilled team which is incentivised and committed post-transaction, can be a key valuation driver.
Scalable Infrastructure: Investors like businesses that can be expanded across multiple sites. Those with strong operational foundations and centralised support functions command a premium.
What are international buyers looking for in UK healthcare and where’s the outbound interest coming from?
Many international acquirors are PE-backed themselves and are naturally seeking businesses aligned with the ‘PE model’: high-margin, cash-generative, sticky customers and asset-light.
UK healthcare providers operating in mature and/or fragmented markets – particularly those reliant on fee-paying or contract-funded income – offer ideal platform potential. Interest is particularly strong in subsectors like dental, dermatology, ophthalmology, fertility, and mental health, where demand is high and patients are increasingly willing to pay privately to bypass NHS queues.
These clinics combine scalability, profitability, and a defensible market position making them prime targets for buy-and-build strategies.
Looking ahead: What’s next for healthcare M&A, and what should leaders focus on now?
Deal volume is expected to remain robust through 2025, driven by strong capital availability and continued demand across key sub-sectors.
Large pharmaceutical companies will continue acquiring biotech firms to support new drug development, while investors will look to put more money into healthcare property – especially clinics and treatment centres which provide attractive returns amid the wider economic uncertainty.
We also anticipate a rise in corporate divestitures, as larger players dispose of underperforming or non-core assets – creating attractive, value-buy opportunities for strategic buyers.
Importantly, acquirors are actively seeking tech-ready businesses. Digital transformation is no longer optional – it’s central to value creation. From AI in diagnostics to patient engagement platforms, technology is now a key lever for scalability, efficiency, and a premium valuation.
With substantial funding still available, there’s room for well-prepared businesses to take advantage of what’s ahead.
If you’re a healthcare business owner or investor exploring M&A opportunities, or simply want to understand how these trends could impact your growth strategy, get in touch with Tim on tbrind@translinkcf.com
