healthcare.digital February 23, 2025
Exec Summary:
The HealthTech mergers and acquisitions landscape in 2025, particularly for distressed companies, is shaping up to be a complex and dynamic space, driven by a mix of financial pressures, strategic repositioning, and evolving market demands.
Distress in HealthTech has been brewing for a while, amplified by the post-pandemic reality check. Many startups that ballooned during the 2020-2022 digital health boom fuelled by cheap capital and telehealth hype, are now struggling.
High interest rates, tighter venture funding, and a shift toward profitability over growth have left weaker players exposed. Kaufman Hall’s 2024 data already showed a record 30.6% of hospital M&A deals involving distressed parties, up from 27.7% in 2023, and this trend is spilling into HealthTech.
Companies...