HealthTech M&A Multiples January 2026: Current Trends and Variables driving valuations

HealthTech M&A valuations going into January 2026 are holding in a disciplined but healthy band, with most quality assets changing hands around mid‑single‑digit revenue multiples and low‑teens EBITDA, and premium AI/data platforms stretching above that range. 

'Headline multiples as 2026 opens'

EV/Revenue (core HealthTech / digital health)

General HealthTech: ~4x–6x revenue remains the central band across 2025 data and late‑year outlooks into 2026. 

Premium AI, telehealth & analytics: 6x–8x+ where there is proprietary data, deep workflow integration and strong growth. 

Sub‑scale or unprofitable assets without clear defensibility: often compressed to 3x–4x unless a strategic buyer sees a unique fit. 
 
EV/EBITDA (profitable / tech‑enabled services)

Profitable HealthTech: broadly 10x–14x EV/EBITDA through 2025, with European HealthTech/MedTech sitting in low‑teens on average. 

Private equity healthcare deals overall: ~11x–13x median EV/EBITDA across 2025, with strategics typically 20–40% above financial sponsors on like‑for‑like assets. 

'Trendlines vs 2023–24'

Normalisation after the COVID / 2021 peak:

Revenue and EBITDA multiples have reset from 2021 highs but have not collapsed, with 2021‑era 8x–10x “tourist” pricing now reserved for only the best AI/data assets. 

Mid‑market healthcare IT deals from 2021–24 averaged ~6x EV/Revenue; recent reports show normalisation closer to 4x–6x depending on quality. 

Stabilisation through 2025 into early 2026:

European HealthTech and MedTech multiples stabilised around ~4.8x revenue and low‑teens EV/EBITDA by Q4 2025, with outlooks flagging a cautiously more constructive M&A market in 2026. 

Forecasts for 2026 point to higher healthcare deal volumes and renewed appetite for larger, strategic transactions, especially in tech‑enabled and AI‑rich platforms. 

'Variables driving valuations now'

1. AI, data and “proprietary moat”

Assets with proprietary, clinically validated datasets and AI that demonstrably improve workflow or outcomes command a clear premium, often 20–30% higher EV/Revenue than non‑AI peers. 

Buyers scrutinise whether AI is embedded in mission‑critical workflows (imaging, RCM, triage, operational optimisation) rather than just a feature; this is becoming a central lens for both strategics and PE. 

2. Growth quality, profitability and the “Rule of 40+Data”

Growth on its own no longer suffices; acquirers place heavier weight on:
High recurring or transaction‑based revenue with low churn. 

Attractive gross margins and a credible path to EBITDA in the near term, driving the shift from pure EV/Revenue to EV/EBITDA screens for mature vendors. 

Companies that combine strong growth metrics with robust data moats and operating leverage sit at the top of the valuation range. 

3. Regulatory positioning and evidence

In Europe, clarity around the EU AI Act, MDR/IVDR and the European Health Data Space has begun to support multiples for assets that are proactively aligned and can scale under these regimes. 

Robust clinical and economic evidence (e.g. RCTs, real‑world outcomes, payer‑grade cost‑effectiveness data) is increasingly a prerequisite for premium pricing, particularly for value‑based care and virtual care models. 

4. Strategic fit, buyer universe and deal structure

Strategics and PE platforms continue to pay meaningful premiums when a target:
Fills a clear capability or geographic gap.

Bolsters a buy‑and‑build thesis (e.g. roll‑ups in outpatient, diagnostics, tech‑enabled services). 

Across healthcare, strategic buyers are still paying 20–40% higher multiples than financial sponsors for comparable assets, and are more willing to stretch on revenue multiples where synergies and cross‑sell are tangible. 

Earn‑outs, seller notes and performance‑linked consideration remain common in 2025–26 to bridge valuation gaps between 2021 expectations and current discipline. 

Macro and segment‑specific influences into 2026

Rates, macro and capital markets:

Expectations for rate cuts and easing inflation in 2025–26 underpin a more supportive backdrop for healthcare M&A, though buyers remain selective and focused on cash generation. 

Healthcare retains its role as a defensive sector, with HealthTech/digital health seen as a way to drive productivity and margin repair, which supports sustained M&A appetite. 

Sub‑segment rotation:

Capital is rotating toward provider‑operations tech, RCM/administrative automation, and AI‑enabled diagnostics, while some consumer‑only or point‑solution telehealth models see relatively weaker multiples. 

In the UK and Europe, assets selling into public systems (e.g. NHS‑aligned platforms) that can prove budget impact and interoperability are seeing stronger buyer interest and firmer pricing.

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