Q4 2025

Healthcare M&A Update

In Q4, the S&P 500 Healthcare Industry Index increased by 8.0% and outperformed a 2.0% increase in the S&P over the same period.
The median EV/EBITDA multiple for reported private equity deals in the Healthcare sector increased to 15.3x in 2025 from 11.4x in the prior year, but decreased for strategic deals to 9.0x from 20.9x in 2024.
M&A deal volume in the sector decreased 0.9% in Q4 to 869 deals from 877 in Q3 and was flat compared to Q4 of the prior year.
North America was the most active region in Q4 with 459 deals. Most notably in North America was Abbot’s $21.0B acquisition of Exact Sciences, a Wisconsin-based provider of cancer screening and diagnostic test products for colorectal cancer, in December 2025.
Total capital invested in M&A transactions increased 30.9% in Q4 to $110.1B from $84.1B in Q3, primarily due to the Exact Sciences deal mentioned above. Comparatively, the largest deal reported in Q3 was Sanofi’s $8.9B acquisition of Blueprint Medicine.