Healthcare M&A Momentum: What Our Firm's Activity Signals for Sellers

Volume 12, Issue 12, June 17, 2025

By: Bradley Smith

The world feels unpredictable, and uncertainty seems to be the only constant. One would think this environment would be a significant hindrance to healthcare business owners selling and to buyers stepping in to buy.

And yet, at VERTESS, we are experiencing something different. Our healthcare mergers and acquisitions (M&A) firm is seeing more activity than it has in years, and deals across all sectors keep getting to the finish line. Owners are bringing their companies to market, and strategic and financial buyers are actively pursuing opportunities. Amid tremendous noise, momentum is building.

If that sounds surprising, it is, especially considering that the likes of economic uncertainty, geopolitical instability, a polarized political landscape, and lingering inflationary pressures have left many healthcare business owners frozen in place. The natural assumption is that buyers should be feeling hesitant, and thus the healthcare M&A market must be in a slump.

But that is not what we are experiencing at all.

The Emergence of a New Normal in Healthcare M&A?

After the white-hot activity of 2021 and parts of 2022, the healthcare M&A market hit a wall. The years that followed — 2023 and 2024 — were undeniably tough. We saw deals slow and valuations dip. Many owners who were eager to transact found themselves holding back, trying to wait out the turbulence.

Now, in 2025, things are changing, but not in the way most expected. We are seeing something that almost feels unfamiliar considering what's occurred over the past several years: a sense of balance.

There is a steadiness to the healthcare M&A market right now. The chaos and unpredictability that defined the past five-plus years have not disappeared, but they have started to feel more like the norm. In some ways, this period feels more stable than anything we have seen since before the pandemic. And ironically, that stability is emerging during what many would call one of the most uncertain global and domestic environments in recent memory.

This is where things get interesting. Many healthcare business owners and investors have become numb to the noise. Constant unsettling headlines has made uncertainty feel like the default. While that might seem like a reason to wait to bring a company to market, we see the opposite. Sellers are selling, and buyers are buying.

It is not unlike what we saw during previous uncertain periods. Owners who successfully exited during the peak of the COVID-19 pandemic, or when their industries were experiencing regulatory upheavals in prior years, understood something important: There is no perfect time to transact. Waiting for calm may mean missing out altogether. Instead, these owners focused on what they could control, which included building a strong, efficient business, and that made all the difference.

The same principle holds true today. In fact, for many sellers, this moment is particularly attractive because buyers are increasingly pursuing value. We are seeing serious, disciplined buyers with capital to spend, looking for businesses that demonstrate focus on core areas of expertise, operational maturity, strong leadership, and room to grow.

So, what is the takeaway? You do not need to wait for stability to act. Who knows when stability will return, and what it will even look like? What matters is needing to be ready when your moment comes. That means focusing inward — on your business, your leadership, your long-term goals — rather than outward on market timing. It is the same message I recently shared with home care operators: Uncertainty is the new constant. What matters is how you prepare and respond.

Healthcare M&A Insights From the First Half of 2025

With all of that said, the data shows that some industries are outperforming others when it comes to transaction activity in the first half of the year. According to PitchBook and what we are seeing in our own work, dental, vision, veterinary, and dermatology services are leading the pack, which is not surprising.

Dental and vision care have remained resilient thanks to the ongoing need for these services and operational improvements, like better back-office systems and patient recall tools. Veterinary practices, for example, have seen strong deal interest since COVID-19, when pet ownership and spending surged. Dermatology is experiencing significant growth, with the Wall Street Journal noting, "Americans' newfound obsession with skin care has medical students flocking to this specialty."

Meanwhile, sectors like med spas have pulled back, in part due to emerging shifts such as the impact of GLP-1 weight loss medications, which have changed consumer behavior. Behavioral health and home care remain active, but buyers are showing a bit more caution and being more selective about their investments.

To summarize, this is a market that's rewarding owners with strong focus and clarity on their business. If your company delivers a core healthcare service, operates efficiently, has strong people backing it, has loyal customers, and shows a clear path for growth, the right buyers are likely out there right now.

A Call to Healthcare Business Owners

If you are a healthcare business owner thinking about a potential sale, whether in the next 12 months or the next five years, now is the time to prepare. Do not wait for perfect conditions; they do not and will never exist. Focus on strengthening what you already do well. Review your operations, don't hesitate to move on from what (and sometimes who) is not working, and double down on what is.

The team of VERTESS healthcare M&A advisors is working with clients across the country to do exactly that: helping owners assess their readiness for a sale, understand their company's value and opportunities to improve it, and position their business for a successful transaction outcome.

Let's talk. Contact VERTESS to begin a confidential conversation about the future of your business and how to take advantage of this market.

Bradley M. Smith, ATP, CM&AA

For over 20 years I have held a number of significant executive positions including founding Lone Star Scooters, which offered medical equipment and franchise opportunities across the country, Lone Star Bio Medical, a diversified DME, pharmacy, health IT and home health care company, and BMS Consulting, where I have provided strategic analysis and M+A intermediary services to executives in the healthcare industry. In addition, I am a regular columnist for HomeCare magazine and HME News, where I focus on healthcare marketplace trends and innovative business strategies for the principals of healthcare companies.

At VERTESS, I am a Managing Director and Partner with considerable expertise in Private Equity Recapitalizations, HME/DME, Home Health Care, Hospice, Medical Devices, Health IT/Digital Health, Lab Services and related healthcare verticals in with US and internationally.

We can help you with more information on this and related topics. Contact us today!

Email Bradley Smith or Call: (817) 793-3773.