Q1 2025 Healthcare M&A Review

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.

Download Report

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)