As we reflect on medtech M&A activity of 2025, one thing is clear: the market found its footing again, but on different terms. After several years of uncertainty, dealmaking returned with greater purpose, discipline, and selectivity.
Strategic and financial buyers focused on assets that could demonstrate innovation, commercial traction, regulatory clarity, and scalability. Buyers re-entering the market chose not to chase growth at any cost, but to pursue assets strengthening their core strategies. We witnessed a resetting of valuation expectations and a redefining of what ‘strategic fit’ truly means in today’s medtech landscape.
What defined medtech M&A in 2025
One trend was the continued shift toward platform-focused acquisitions. Large strategic acquirers favored tuck-in acquisitions that enhanced existing platforms, expanded addressable markets, or added differentiated capabilities. Transformational deals were the exception rather than the rule.Procedure-enabling technologies aligned with minimally invasive care, outpatient settings, and value-based care models continued to attract strong interest. Technologies clearly reducing procedure time, improving clinical outcomes, or lowering total cost of care attracted consistent attention. Those relying heavily on future reimbursement changes or behavior shifts faced greater scrutiny.
From a capital perspective, private equity returned to the market with a noticeably more pragmatic lens. Interest centered on companies with durable cash flows, strong leadership, and opportunities for operational improvement.
2025 required recalibrated valuation expectations for founders and boards but offered renewed confidence that well-positioned assets would find the right partners. Earnouts, milestone-based consideration, and structured equity components were common in bridging valuation gaps, underscoring a theme of risk-sharing between buyers and sellers.
Underlying forces shaping deal activity
Aging populations, workforce shortages, and ongoing cost pressures are reinforcing demand for technologies driving efficiency and scalability. At the same time, regulatory complexity and quality expectations are placing a premium on execution and compliance.What stands out most to us is how strategically intentional buyers have become. Acquisitions are increasingly evaluated for long-term portfolio coherence, not just near-term revenue contribution. That mindset is reshaping how deals are sourced, diligenced, and integrated.
What we expect to see in 2026
We expect medtech M&A activity to remain active. High-quality assets, with defensible technology, repeatable revenue, and global expansion potential are likely to command strong interest and competitive processes. Companies that have delayed commercialization or lack strategic clarity may face tougher outcomes.We anticipate increased deal flow in data-enabled and digitally integrated medtech, as traditional hardware companies continue to evolve into solution providers. Connectivity, analytics, and software layers are no longer ‘nice to have’ but are essential components of differentiated offerings. Acquirers are looking for companies that understand how to integrate these capabilities in meaningful, scalable, and clinically relevant ways.
We expect cross-border M&A to have positive momentum in 2026, especially as supply chains stabilize and multinational buyers look to fill geographic or capability gaps. Geopolitical considerations and regulatory oversight will continue to influence deal structures and timing.
Private equity (PE) is likely to play an even larger role in 2026, supported by available capital and growing confidence in medtech’s resilience. We expect PE to continue focusing on creative structuring, operational value creation, and longer-term ownership strategies.
AI: From talking point to transaction driver
Artificial intelligence (AI)’s influence on medtech M&A is only beginning. In 2025, AI was often viewed as a valuable enabling feature, but not always central to deal rationale.In 2026, we expect that to change.
Acquirers are looking more closely at how AI is embedded within products, workflows, and data strategies. Buyers are more focused on its measurable impact on clinical outcomes and economic performance. For companies preparing for future transactions, a clear and credible AI strategy grounded in real-world application may become a meaningful differentiator.
Looking forward
The market is rewarding focus, execution, and strategic clarity. As we move into 2026, we believe the most successful companies will be those that understand where they fit, what they do exceptionally well, and how their capabilities align with the evolving needs of healthcare systems worldwide. We see significant opportunity ahead and remain optimistic about the role M&A will play in shaping the next generation of medtech innovation.
MedWorld Advisors
https://medworldadvisors.com
Explore the January/February 2026 Issue
Check out more from this issue and find your next story to read.
Latest from Today's Medical Developments
- Kistler, ATS Life Sciences Systems scale production with medical device assembly line
- Platinum Tooling expands internal coolant tool offering
- US metalworking machinery orders through November 2025 reveal 17.8% increase from first 11 months of 2024
- Precision metering pumps for medical device manufacturing
- #81 Manufacturing Matters - Additive Manufacturing Analysis, Trends, Forecasts with Terry Wohlers
- Velosity opens precision development center to accelerate medical device product launch
- A look at the latest in the defense industry
- EMCO manufacturing showroom offers customers hands-on milling, machining engagement
