Healthcare M&A Gains Momentum: A Mid-Year Look from Datasite

In this next edition of the Sector Spotlight Series,  Kelly Weisenfels, Regional Sales Director at Datasite, shares fresh insights into the evolving healthcare M&A landscape.

After a period of hesitation and valuation mismatches, deal activity in healthcare is starting to accelerate. In the first half of 2025, the sector stood out globally, with deal initiations rising 3% worldwide and 4% in North America. While due diligence still takes time, averaging 219 days, the sector’s deal closure rate has climbed to 46%, outperforming the global benchmark. Hold rates remain steady at 23%, signaling a cautiously optimistic environment.

The numbers tell an interesting story. Deal starts are inching upward, and although diligence timelines remain long, more deals are actually crossing the finish line. That’s a sign of confidence returning to the market. Big names are leading the charge such as Johnson & Johnson’s multibillion-dollar acquisition and other headline-making transactions that signal quality, not just quantity.

What’s fueling the uptick?

• High-performing niches like behavioral health, diagnostics, and physician groups
• A wave of private equity investment in healthtech and AI-powered services
• Innovative deal structures that help navigate valuation gaps and regulatory hurdles

Policy is also shaping the landscape. The much-discussed One Big Beautiful Bill Act is shifting incentives and risk profiles, forcing dealmakers to rethink strategies. But rather than slowing things down, it’s sparking new approaches to platform building and growth.

The takeaway? Healthcare continues to be a resilient and attractive space for private equity. The focus is shifting from defensive cost-cutting to building scalable platforms. If macroeconomic conditions stabilize and policy clarity improves, healthcare could be the sector that leads the next wave of M&A recovery.

Watch the full segment below:

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