What's your company really worth in 2026's medtech M&A market?
To view our article on Today’s Medical Developments Magazine website, click here.
We hear a version of the same conversation regularly: A founder or business owner who built something genuinely valuable – their technology works, customers are loyal, the team is strong – and yet the valuation conversation isn’t going the way they expected. The answer isn’t that their company isn’t good. It’s their M&A process. It’s that they failed to understand most buyers will pay as little as they have to pay to get your business. We’ve seen the first offer from a buyer who’d reached out to a seller be 40% to 60% less than the final offer once their M&A process was deployed. According to independent studies, industry averages are 23% more value for sellers who hire outside advisors than manage their own M&A sales process.
Most private equity (PE) firms and strategic acquirers have teams of advisors on their side determining how to value a deal. Most individual business owners or small to medium size businesses don’t. While a business owner may get a reasonable deal without advisors on their side, it’s unlikely they’ll get the best deal available in the market. Why? The answer is the process matters.
It’s true the medtech M&A market has undergone a meaningful reset. After the inflated multiples of the post-COVID-19 era, pricing has normalized – but not collapsed – for good medtech-related companies. Understanding what drives value in this environment is no longer optional for owners who are serious about a future transaction maximizing their stakeholder value.
The reset is real – but so is the opportunity – so know your value and plan your process!
Medtech deal value rose to $80 billion in 2025, up from $68 billion in 2024, with the second half particularly strong as valuations fluctuated. More deals, at more disciplined prices in some cases, while others still sold at a premium. That’s the new normal. In terms of exit multiples (of revenue or EBITDA) for enterprise valuation, there’s a huge spread between where most deals transact. Where your company lands in that spread matters enormously.
Strategic vs. financial buyers: Two very different conversations
Strategic buyers often pay higher multiples than financial sponsors for comparable assets and are more willing to stretch on revenue multiples when a target fills a clear capability or geographic gap. Private equity has also returned to medtech with real conviction – but on its own terms. Sponsors are increasingly pursuing bolt-on acquisitions of any size, minority investments, and platform acquisitions (with room to grow organically and inorganically). They often make these investments with an eye on a future exit to strategic acquirers. PE is looking for durable cash flows, strong leadership, and operational upside – and will structure creatively to get there if necessary. We’re seeing this play out in our own deals. The best situation is to have both types of buyers competing for your company.
What buyers are actually paying for
Recurring, defensible revenue remains the foundation. Strategic and financial acquirers are seeking traction in revenue and EBITDA growth with healthy gross margins. They’ll pay premiums for these types of opportunities in medtech-related businesses.
Looking forward
The companies commanding the strongest outcomes share a common profile: clear strategic positioning, financial performance with transparency, regulatory compliance, a credible growth story and a disciplined M&A process.
In our M&A practice, we state that “Value = Strategic Fit + Timing®”. That formula has never been more applicable. If you’re thinking about a transaction in the next one to three years, the time to understand your value – and begin building toward it – is today. And be ready for an exciting outcome through a true M&A process that rewards you and your stakeholders for what you’ve created!
