Q1 2025 Healthcare M&A Review
- Eclipse Corporate Finance
- Apr 3
- 1 min read
Updated: Apr 7
We are pleased to release our review of M&A, private equity and venture capital activity across the UK healthcare sector in Q1 of 2025.
Our report, which can be downloaded below, highlights the most active sub-sectors, along with a month-by-month summary of the key deals across the market.
Q1 2025 Healthcare M&A Review Summary
Deal Volumes
Deal activity in the healthcare sector across Q1 of 2025 was notably depressed versus late 2024, following a rush of deals before the Autumn budget in October 2024
Macro economic factors such as limited UK growth and “tariff wars” are undoubtedly affecting the broader M&A market, in addition to major reform of NHS governance creating some uncertainty within healthcare
Despite this, investor and acquirer appetite remains high for quality businesses across the sector and we expect stable deal activity for the rest of 2025
Sub-sector Activity
Specialist care was the most active area of the market in Q1, with various deals across supported living, mental health hospitals and children’s services
Clinical services activity was primarily focused on community-based services to the NHS and private-pay services in specialisms where NHS waiting lists are high
Digital health deals were centred around EPRs and digital/tech-enabled services in areas such as surgery prehab and weight loss
Private Equity Involvement
As ever, private equity activity remains a key driver of activity, with 50% of transactions involving private equity either through direct investment or via bolt-on deals
The period saw new platforms for YFM (Audiological Science), BGF (OCL Vision), Baird Capital (Newmarket Strategy), 57 Stars (New Life Teeth) and QPE (Medimatch Dental Labs)
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