Q1 2026

Healthcare M&A Update

In Q1, the S&P 500 Healthcare Industry Index decreased by 5.7% and was outperformed a 4.8% decrease in the S&P over the same period.
The median EV/EBITDA multiple for reported private equity deals in the Healthcare sector decreased to 10.7x in Q1 from 15.4x in 2025, but increased for strategic deals to 13.4x from 9.0x in the prior year.
M&A deal volume in the sector decreased 4.6% in Q1 to 829 deals from 869 in Q4, but increased 1.6% from 816 deals in Q1 of the prior year.
North America was the most active region in Q1 with 436 deals. Most notably in North America was Water’s $17.5B acquisition of BD Solutions, a New Jersey-based operator of biosciences and diagnostic solutions, in February 2026.
Total capital invested in M&A transactions decreased 15.4% in Q1 to $93.2B from $110.1B in Q4, primarily due to fewer mega-sized deals in Q1. In Q4, Abbott acquired Exact Sciences for $21.0B while the largest deal reported in Q1 was Water’s $17.5B acquisition of BD Solutions.