Why Private Equity is Setting its Sights on Healthcare Technology & Services, And How to Position Your Business
- donalosullivan
- May 8
- 3 min read
Private equity interest in healthcare technology and services has surged in recent years, and 2025 looks set to continue that momentum. With rising demand for digital solutions, ongoing regulatory shifts, and a growing focus on operational efficiency in healthcare delivery, investors are actively seeking scalable businesses in this sector.
At Vico Advisory, we have a front-row seat to this trend. As a specialist M&A advisory firm serving healthcare technology, business services, and financial technology firms, we help growth-stage businesses navigate the process of attracting private equity investment or securing a strategic sale.
In this post, we explore why healthcare technology and services firms are in such high demand and what steps founders and CEOs can take to prepare their businesses for private equity interest.
Why PE Firms Are Targeting Healthcare Technology & Services
Several forces are converging to make healthcare an attractive sector for investors right now:
Digital Transformation: From electronic health records (EHR) to telehealth, digitalisation is reshaping how care is delivered. PE firms see strong upside in backing the platforms that enable this shift.
Regulatory Tailwinds: As governments push for interoperability and better patient outcomes, there's growing demand for solutions in ePrescribing, medical coding, billing services, and compliance.
Recurring Revenue Models: Many healthcare software and services businesses operate on SaaS or subscription models, providing the predictable cash flow that PE firms value.
Fragmented Markets: Sectors like patient monitoring, medication management, and practice management software are still fragmented, offering roll-up opportunities for PE-backed platforms.
Resilience: Healthcare is a defensive sector, often less exposed to economic downturns a key factor as investors seek safe havens amid global uncertainty.
The Types of Firms Attracting Attention
PE investors are especially keen on healthcare businesses that tick the following boxes:
Annual revenues typically between €5M and €50M
Proven technology with an established customer base
Strong EBITDA margins and growth trajectory
Recurring or contracted revenue streams
Positioned in growing niches like telehealth, interoperability, or compliance services
If your business serves healthcare providers, payers, or regulators with mission-critical technology or services, you may be well placed to attract PE interest in the current market.
How to Position Your Business for PE Investment
If you're a healthcare technology or services founder considering a private equity transaction, preparation is key. Based on our experience at Vico Advisory, here are the steps to take:
Get Your Financials Investor-Ready: Ensure your financial reporting is robust, with clear visibility on revenue streams, churn rates, and profitability.
Highlight Recurring Revenue: Emphasise contracted revenues and long-term customer relationships. Investors prize predictability.
Demonstrate Scalability: Articulate how new investment would accelerate growth through product development, geographic expansion, or bolt-on acquisitions.
Address Compliance and Regulatory Strength: Showcase how your business helps healthcare providers navigate complex compliance challenges. This is a value driver.
Engage an Experienced Advisor: Navigating PE interest is complex. An advisor with deep sector knowledge can position your business effectively, manage competitive tension among buyers, and secure optimal terms.
How Vico Advisory Can Help
At Vico Advisory, we specialise in advising owners of healthcare technology and services businesses through transformative M&A transactions. Whether you're considering a growth capital raise, a partial sale to a private equity partner, or a full exit, we provide end-to-end support.
Our recent work includes advising on both sell-side and buy-side mandates across healthcare technology, compliance services, and business services, giving us unique insight into what today’s investors are looking for.
If you're ready to explore your options and learn more about how private equity investment could fuel your next stage of growth, we invite you to schedule a confidential conversation with our team.
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