Strategic trade buyers and inbound deals drive robust healthcare M&A

Strong levels of strategic activity among trade buyers and inbound deals involving overseas investors have helped to ensure that dealmaking in the UK healthcare sector has remained robust so far in 2025.

According to new research from Heligan Group, there was a “steady stream of deal activity” in the sector during the first quarter of the year, with 59 deals completed. This included 17 in both January and February, before an increase to 25 deals in March.

Heligan Group partner Ramesh Jassal stated that trade deals are currently dominating the marketplace, with strategic buyers accounting for 92 per cent of deals in March alone, as private equity buyers focus on “consolidating sectors through bolt-ons.”

The health and social care subsector was the most active during the first quarter of the year and made up 48 per cent of deal volume in March, driven by a strong level of lower-value deals involving care homes.

Pharma and life sciences saw growing activity, with deal volume increasing from two deals in February to seven in March – 28 per cent of the total for the month. Jassal forecast that pharmaceutical M&A is "set to increase as borrowing constraints are relaxed.”

March also saw a major increase in inbound deals, which rose from 23 per cent of the total in February to 32 per cent the following month, demonstrating the strength of international interest in UK healthcare. However, Jassal cautioned that “recent US tariffs introduce uncertainties that could influence future M&A activity, warranting close observation in the coming months.”

Discussing other prominent M&A trends in the sector, Jassal said: "Healthcare providers are increasingly adopting technologies such as remote monitoring, virtual consultations, and AI-driven triage systems to address growing patient demand and workforce challenges. These innovations are particularly focused on mental health, chronic condition management, and resource-efficient staffing, reflecting the evolving needs of modern healthcare systems.”

Analysing the factors that could shape M&A during the remainder of 2025, Jassal said that the appeal of UK healthcare assets to overseas buyers could be enhanced by the weaker pound and US tariffs, which could position the UK as "a strategic gateway to the US market.” However, he added that this would be contingent on "the evolving nature of US trade policies and their impact on global supply chains.”

Elsewhere, Jassal expects the “next wave of healthcare transformation” to be defined by "predictive care, interoperability, and embedded AI, driven by the need for seamlessly integrated platforms that deliver real-time insights and meet rising patient expectations for convenience, personalisation and outcome-based care.”

He concluded: "I anticipate investment to flow heavily into mental health, workforce technology, and preventative diagnostics as the system shifts from treatment-focused to long-term wellbeing management."

Read more about healthcare M&A:
Care in the community: M&A in the healthcare services market.

MedTech M&A: Resilience and Optimism.

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