LevinPro HC’s Kate Humphrey and Ben Swett attended McDermott Will & Schulte’s Healthcare Private Equity Miami conference, which brought together healthcare leaders in a powerhouse summit on the sands of South Beach. For two days, industry experts and leaders moved beyond surface-level buzz and delved into the complexities of private equity in healthcare. Attendees engaged in conversations ranging from investors’ latest stance on AI to analyzing the hottest investment sectors.
Here are our top takeaways:
New Normal for Dealmaking
A large portion of the conversations centered on a “new normal” for dealmaking, in which the market has shifted from the post-pandemic frenzy to a more cautious pace. There is still capital, plenty of it, but it is moving more slowly, more selectively and more methodically than it was 2-3 years ago. Despite healthcare fundraising technically being “down” to $508 billion in 2025, the industry is still sitting on a mountain of dry powder. However, this liquidity isn’t flowing freely; constraints persist, particularly in sectors navigating heavy regulation and reimbursement headwinds. Additionally, in this new normal market, renegotiations are increasingly accepted as part of exit strategies. The stigma against bringing assets to market more than once has lessened, creating a more favorable, pragmatic deal environment.
Valuations
Pinning down a single valuation consensus is nearly impossible in today’s market, given the varying considerations of each business, local market, reimbursement rates and sector headwinds. Yet a few striking anomalies stand out. Despite being in demand, publicly traded medtech companies are reporting valuations that resemble the Great Financial Crisis, with multiples of 8-10x. In certain sub-sectors, such as revenue cycle management, revenue is trading at 2-3x and EBITDA at 5-15x. However, there is a silver lining: high-quality businesses with double-digit organic growth and clear market positions continue to command premium prices.
The Bid-Ask Spread
While the bid-ask spread still exists, industry experts are leveraging creative structures to close the valuation gap. Creativity is reshaping the nature of deals by bolstering competition and favoring strategic buyers. Unlike PE groups, strategic buyers can often benefit from the lower cost of capital. As part of the creative deal structures, buyers are seeking options beyond traditional M&A transactions to grow and diversify services, including joint ventures, partnerships and other arrangements.
Take Private
According to several panelists, there will be an increased number of “take private” deals hitting the market in the second half of 2026, especially by private equity investors. For private equity groups to rationalize taking companies private, there’s been an emphasis on diverse portfolios spanning multiple subsectors to help address operational challenges and broaden revenue bases.
Globalization of Medtech
Industry leaders anticipate an even greater priority for global medtech, especially in the pharmaceutical and pharmaceutical services sectors. Countries such as China and South Korea have become more dominant forces as companies increasingly license products from Eastern innovators to launch in the US and Europe. The momentum has been bolstered by existing infrastructure and strong governmental support, and will continue to be.
Artificial Intelligence
While investors pivot from the hype of AI to its utility, focusing on back-office automation over clinical and diagnostic integration to mitigate risk, a fundamental hurdle remains: how do investors and other industry leaders value AI implementation in healthcare businesses? With a lack of regulation, transparency concerns, reluctance to share data and cost apprehension, there’s no clear path forward. As a result, there have been fewer AI-centered healthcare transactions than previously expected.
