Health systems around the world were recently brought into the spotlight due to COVID-19. The pandemic showed the strengths and weaknesses of different health systems and demonstrated the importance of efficient health systems in promoting and maintaining the health of a population. The long-term impact of the global outbreak remains to be seen, but it is clear the pandemic revealed flaws in health systems. Changes to funding, organization, and institutions may end up being a positive result of a terrible event.


Underlying drivers of the Healthcare sector in 2021 and 2022 include aging populations in developed countries and rising household incomes in developing countries. In countries where national health systems were strained by the pandemic, private health systems flourished, while consolidation pressure increased among small providers.


Pharmaceutical companies pursue drug development and diversification, as several of the year’s largest deals were pharmaceutical company acquisitions of contract research organizations; bringing these third-party contractors in-house can help cut drug development costs amid fierce competition. Retail giants muscle into the healthcare arena by banking on a fundamental shift in the site of care away from hospitals, with patients becoming more accustomed to digital healthcare and/or healthcare outside traditional medical settings.


* According to Pitchbook’s 2021 Global M&A Report

FCL Industry Coverage


  • Devices & Supplies
  • Services
  • Technology Systems
  • Pharmaceutical & Biotechnology

M&A Activity

Volume dropped significantly from 5,026 in Q4 of 2022 to 3,081 deals closed in Q1 2023. Compared to Q1 of 2022 there has been a 52% decline in dealflow. This was driven mostly by a decrease in Venture Capital deals. We can see a stable to increasing trend in median post valuation between 2021 and 2022 with the highest value being $39.2 million in Q1 2023.