Everyone is talking about healthcare M&A picking up again. But the more interesting question is what buyers are willing to pay for. Deal activity is strong, but buyers are becoming much more selective. Growth alone is not enough anymore. They want businesses with reliable cash flow, strong market positions and a clear path to creating more value.
Global healthcare private equity deal value reached around $191 billion in 2025, across 445 buyouts, making it a record year for the sector. But 2026 feels different. Buyers are looking more closely at margins, recurring revenue and whether a business can continue growing without constantly needing more capital.
Buyers want more than a growth story
A strong growth story used to be enough to justify a premium. Today, buyers are asking a simpler question: how much of that growth actually turns into cash?
That matters particularly in healthcare services, where labour costs, reimbursement pressure and regulation can quickly squeeze margins. Buyers are increasingly looking for recurring revenue, strong customer relationships and businesses that can become more profitable as they scale.
The same thinking is visible in medical technology.
On August 3, 2026, Kohlberg Kravis Roberts agreed to acquire Integer Holdings in an all-cash transaction valued at approximately $5.7 billion. Shareholders will receive $127 per share, representing a 51.8% premium to Integer’s closing share price on April 29, 2026. Integer reported $1.85 billion in sales in 2025, up 8% from the previous year.
Integer makes components and finished products used in cardiovascular, neuromodulation and other medical technologies. The attraction is not simply growth. It is specialised engineering and manufacturing capability that is difficult for competitors to replicate.
The biggest deals are becoming more structured
Hologic shows another side of the market.
On October 21, 2025, Blackstone and TPG agreed to take Hologic private in a transaction valued at up to approximately $18.3 billion. Shareholders were offered $76 per share in cash, plus a contingent payment of up to $3 per share linked to the performance of Hologic’s breast health business.
The structure is important. Instead of paying entirely for future growth today, part of the consideration depends on whether that growth actually happens.
That approach reflects a broader change in healthcare M&A. Buyers are still willing to pay for future potential, but they increasingly want some protection if those expectations do not materialise.
The middle market tells a different story
The biggest deals get the headlines, but some of the most interesting opportunities are smaller.
On May 6, 2026, Knox Lane agreed to acquire Cross Country Healthcare for approximately $437 million, or $13.25 per share in cash. The transaction was completed on July 21, 2026.
Cross Country is a healthcare staffing business, making the deal interesting for a different reason. It shows that investors are still willing to back healthcare services businesses even when the growth story is less obvious than in medical technology.
It also highlights the importance of consolidation. Healthcare remains highly fragmented, and specialised businesses can become more valuable when combined with a larger platform that can add scale, technology or purchasing power.
What to actually watch next
Healthcare M&A is therefore not simply about the sector recovering. The bigger change is what buyers are willing to pay a premium for.
The strongest interest is increasingly going toward businesses with specialised capabilities, predictable revenue and clear operational upside. Medical technology, healthcare services, pharmaceutical services and healthcare technology are all attracting capital, but buyers remain cautious where margins or reimbursement are harder to predict.
The businesses to watch are not necessarily the ones growing fastest. They are the ones combining strong demand, something difficult to replicate and economics that can support a buyer’s price.