healthcare.digital February 23, 2025
The distressed HealthTech M&A landscape in the UK
The distressed HealthTech mergers and acquisitions (M&A) landscape in the UK reflects a sector under strain, shaped by a cocktail of economic, operational, and regulatory pressures. Here’s a breakdown of the causes driving this distress and their effects on the UK HealthTech M&A scene.
Causes
Economic Squeeze and Funding Drought
The UK’s HealthTech sector, despite its £34.3 billion annual heft, is reeling from a post-pandemic funding pullback. Venture capital, which fueled a 2021 boom, has tightened—2023 saw a 34% drop in digital health investment to £835 million ($1.1 billion) from 2022, per Galen Growth. High interest rates and inflation have made borrowing costlier and investor appetite warier, leaving cash-hungry startups...
Today's Sponsors
Today's Sponsor