Mid-market healthcare dealmaking is showing clear signs of diversification, with opportunity sets spreading across biotechnology, medical services and pharmaceuticals rather than concentrating in mega-deals.
The latest global healthcare merger and acquisitions (M&A) review by Baker Tilly International, produced in partnership with Mergermarket, shows that in 2025, medical assets led the charge, driven by ongoing industry fragmentation.
“Artificial intelligence and medical technology are converging to produce a new category that didn’t even exist five years ago – that being, devices that learn, adapt and generate continuous clinical intelligence. Dealmakers are paying premiums for that capability because building it internally is simply not realistic at the speed the market is moving.”
Global healthcare mid-market M&A: Sub-sectors (2025)
*Note: Sub-sectors follow Mergermarket classification framework.
Medical sub-sector takes top spot
Medical assets linked to hospital management, medical equipment, services and healthcare supply companies account for the largest share of activity (both in volume and value), as investors pursue roll-up strategies built around scalable platforms and bolt-on acquisitions.
Far from being saturated, this segment continues to offer durable consolidation potential.
Innovation cycles sustain appetite for biotechnology deals
Biotechnology remains a steady source of deal flow, supported by persistent innovation cycles and strong demand for licensing and early-stage assets.
However, investors are becoming more selective, prioritising companies that have already cleared key scientific or regulatory milestones.
Pharmaceuticals shows consistent deal flow but secondary ambition
Accounting for 22% of mid-market deal value and volume, pharmaceutical deals provided a reliable deal flow.
This reflects a more mature dealmaking landscape - one where valuation sensitivity and strategic fit are increasingly shaping decisions.
2006 outlook
Healthcare M&A rebounded sharply in 2025, with global deal values rising 38% year-on-year, signalling renewed investor confidence after a period of uncertainty.
However, the recovery fell short of the wider global M&A market, which expanded by an exceptional 45% across all sectors.
The gap highlights a more measured return to dealmaking in healthcare, where caution still underpins investment decisions.
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