Ageing populations across developed markets are fuelling surging demand for chronic disease management, specialised care and outpatient services.
At the same time, rapidly expanding middle classes in emerging markets are driving demand for core healthcare infrastructure, diagnostics and primary care access.
The latest global healthcare merger and acquisitions (M&A) review by Baker Tilly International, produced in partnership with Mergermarket, shows a market moving at different speeds.
While some regions continue to navigate economic headwinds and cautious dealmaking sentiment, others are capitalising on these structural shifts, supported by expanding infrastructure and strong investor appetite for healthcare assets.
The result? A clear reordering of where healthcare M&A is gaining momentum – and where it’s not.
“What’s striking about the current M&A environment is the geographic diversification of dealmaking. Cross-border M&A into emerging markets is a much more meaningful part of the conversation. Health systems in those regions are rapidly maturing, and Western strategics are recognising that organic growth alone won’t get them the scale they need.”
North America: Still leading, but losing momentum
North America remains the dominant force in mid-market healthcare M&A – but the tide is turning.
In 2025, the region saw sharp double-digit declines, with deal value falling 12% (to US$48.5bn) and volume dropping 14% (456 deals).
Asia Pacific: The growth engine accelerating
Asia Pacific is not just holding its position; it’s gaining ground fast.
As the second-largest market, it delivered standout growth in 2025, with deal value surging 26% (to US$28.8bn) and volume rising 20% (327 deals).
The gap is closing and Asia Pacific is fast becoming a powerhouse for healthcare investment.
Western Europe: Steady, but more complex
Western Europe tells a more nuanced story.
Healthcare deal activity is closely tracking broader mid-market trends, pointing to macroeconomic influences rather than sector-specific drivers.
Value climbed a solid 18% (to US$22.8bn), while deal volume remained largely flat, inching up just 0.5% (211 deals).
Cross-border healthcare M&A defying the downturn
While cross-border dealmaking softened across the broader mid-market, healthcare held its ground.
In 2025, cross-border healthcare deals delivered 3% growth in value (US$40bn), even as volume declined 6% (340 deals). This continues a clear three-year pattern: fewer deals, but larger, more strategic transactions replacing opportunistic plays.
Contrast this with the wider mid-market, where cross-border activity fell 0.3% in value and 2% in volume. Healthcare’s ability to sustain value growth, despite a broader pullback, highlights its resilience and enduring appeal to international investors.
Shifting flows, new priorities
Western Europe is taking centre stage as a premium destination for healthcare investment. Inbound deal value rose 18% to US$16.4bn in 2025 as buyers were drawn to its mature systems and stable regulatory environment.
Despite a 6% dip in volume, it remained the most active region by deal count (137 deals). Outbound investment also edged up 8% to US$18.8bn, even as deal numbers softened.
In contrast, North America is seeing momentum turn inward.
Inbound deal value fell 14% to US$12.7bn, with volume dropping 19% (109 deals), as international investors redirect capital to more attractively priced, higher-growth markets.
Outbound activity followed a similar trend, declining 12% in volume (90 deals) and 17% in value (US$10.3bn), signalling a growing preference for domestic opportunities.
Meanwhile, Asia Pacific is rapidly establishing itself as a global healthcare investment hub.
Inbound deal value increased 19% to US$8.4bn, while volume surged 37% (74 deals), reflecting its shift from a peripheral market to a core destination.
At the same time, regional bidders are expanding internationally, with outbound investment rising 18% to US$9.7bn and deal activity holding steady – underscoring the region’s growing confidence and global ambition.
A strategic comeback
Dealmakers aren’t pulling back, they’re repositioning. And in 2026 and beyond, cross-border healthcare M&A is set to follow.
Even against a backdrop of geopolitical and regulatory complexity, cross-border flows are poised for steady, targeted growth.
The direction of travel is clear: cross-border M&A is becoming more selective, more strategic and more globally interconnected than ever.
Here to close the deal you’ve been planning – or bring the targets that will add real value to your business.
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