There were 963 closed healthcare M&A transactions in fiscal 2025, down from 1,163 in 2024, a continued “normalization” from post-pandemic peaks, according to a Jan. 14 report from PCE Investment Bankers.
Here are seven more things to know from the report:
1. Median multiples stayed resilient at 13.53x EBITDA and 3.53x revenue, suggesting investors are still willing to pay for the right assets, according to the report.
2. The market is “more deliberate,” not frozen, according to the report. Buyers are doing fewer deals but leaning into transactions with clear strategic fit and strong fundamentals.
3. Pricing discipline is tighter, diligence timelines are longer and buyers are more selective, especially prioritizing profitability, durable cash flow and defensible positions.
4. Strategics accounted for 845 deals, nearly 88% of all fiscal 2025 healthcare M&A activity.
5. The report highlighted major strategic transactions such as Pfizer’s $9.8 billion acquisition of Metsera, pointing to sustained demand for specialty therapeutics, including obesity-related solutions.
6. Healthcare outperformed cyclical sectors but lagged behind high-growth tech on valuations. Even with a 17.2% year-over year drop in global healthcare deal volume, the sector is framed as relatively resilient due to recession-resistant demand and recurring revenue models.
7. Here are the top states by transaction count:
- California: 148
- Florida: 85
- Texas: 63
- Massachusetts: 63
- New York: 61
