M&A deal volumes were robust with with 541 transactions seen in 2023. Private Equity kept on building up their portfolio companies and represented the buyer in approximately 32% of these deals.

 

Only 13% of the 541 transactions, worth a total of $17.7 billion, had disclosed their deal values as buyers continued to guard the deal details and strategy behind their acquisitions.

 

In 2023, the Healthcare Ops subsector saw 170 deals, and the Healthcare IT Services subsector at 86 deals followed by Healthcare Data Management and EHR/EMR subsectors at 79 and 70 deals respectively, representing together 78% of all deals in Healthtech space. 

Venture capital funding for HealthTech firms continued to dry up in 2023. The median VC funding size was $3.2 million last year. As the median M&A deal size was approximately 7 times larger, sellers have been encouraged to pursue M&A as their option for growth and liquidity.Venture capital funding for HealthTech firms continued to dry up in 2023. The median VC funding size was $3.2 million last year. As the median M&A deal size was approximately 7 times larger, sellers have been encouraged to pursue M&A as their option for growth and liquidity.

 

HealthTech continues to be a target for Private Equity buyers with Main Capital Partners leading the pack with 7 deals in 2023. Providence Equity made 5 deals, followed by TPG and Thoma Bravo with 4 and 3 deals respectively. Strategics were also active in the space with POSaBIT, M3 and Health Cloud Initiative buying 4 companies each and ClinicMind, IQVIA, Aya Healthcare, Astorg, Home Care Pulse and UnisLink each doing 3 deals. Additionally, buy-and-hold acquirer Constellation made it on the leaderboard with 7 transactions.