2025 Merger and Acquisition Predictions in Healthcare Industry
Executives in the digital health sector are predicting some interesting trends for mergers and acquisitions in 2025. Some believe that struggling startups will be looking for exits, while others think that companies with proven value will have more funding opportunities.
Sean Mehra from HealthTap mentioned that struggling startups might decide to sell or shut down, leading to what looks like a market consolidation, but is actually a correction from the digital health bubble during the pandemic. Neil Patel from Redesign Health believes that many companies from the recent boom will face reality checks in securing follow-on funding, focusing more on sustainable economics.
Don Woodlock from InterSystems highlighted the value of companies that can integrate acquired technologies successfully and achieve interoperability. Lisa Suennen from American Heart Association Ventures thinks that there will be an acceleration in mergers and acquisitions, especially to avoid companies going out of business.
Ellen Rudolph from WellTheory expects more activity in the IPO space in 2025 for companies like Hinge Health and Omada Health. Despite differing opinions, most executives agree that companies may explore M&A options to keep their products in the market.
Looking into the future, executives anticipate that the fundraising environment may continue to be challenging, leading to potential exploration of M&A options for many companies. Despite the uncertainties, many believe that some consolidation might actually be beneficial for the industry, helping the best solutions rise to the top.
Overall, the consensus seems to be that M&A activity in the digital health space may pick up in 2025, with various factors affecting the landscape, including the new presidential administration’s policies and the economic climate. Time will tell how these predictions pan out as we move closer to the upcoming year.
