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Nelson Advisors featured on the HLTH Europe 2026: ‘Step Outside’, the call to action for HLTH Europe 2026: an invitation to leave comfort zones, see challenges differently, and find energy in collaboration and diversity.The Exit Factor: Why M&amp;A is on the rise in healthtechForget IPOs, Europe’s healthtech founders are finding their happily-ever-after in M&amp;A.&nbsp;Corporates want fresh tech, investors want liquidity, and the cheques are getting bigger.&nbsp;By mid-2025 healthcare deal value had soared 87% to €31.8 billion, even as deal count slid 8% according to Nelson Advisors. In the UK, 168 healthtech exits landed by the end of 2024 against just 61 failures. Exits are no longer plan B, they are the headline act.Source: <a href="https://europe.hlth.com/agenda" data-mce-href="https://europe.hlth.com/agenda">https://europe.hlth.com/agenda</a>HLTH Europe is the continent’s #1 healthcare innovation event. Following an enormously successful launch and the exponential growth of HLTH in the US, this landmark event is where global expertise meets local insight to address Europe's unique healthcare challenges and opportunities.About HLTH EuropeAt HLTH, we believe in the power of community to solve health's most pressing issues. We do not accept the status quo and challenge other leaders to do the same. We are proud to run the world’s most important events on health innovation. &nbsp; &nbsp;Building on our track record running the US’s best health events, we brought the HLTH DNA to Europe. World-class speakers, immersive attendee experiences, incredible networking events and parties, and impactful networking programmes are at the heart of HLTH.<a href="https://europe.hlth.com/about-hlth-europe" data-mce-href="https://europe.hlth.com/about-hlth-europe">https://europe.hlth.com/about-hlth-europe</a>

Nelson Advisors featured on the HLTH Europe 2026 Agenda

Nelson Advisors featured in the Deloitte Center for Health Solutions '2026 US Health Care Outlook' Report: Three critical strategies shaping a more resilient, technology-enabled future.Build integrated digital platforms, not one-off digital toolsMore than half of surveyed health plan executives (53%) intend to invest in initiatives that expand the use of digital tools for member engagement and behavior change, and 50% of health system executives plan investments in tech-enabled patient engagement and monitoring tools. Rather than investing in disconnected solutions, however, organizations should consider trying to create or join digital platforms with shared capabilities, data, and governance. (8) Digital platforms are intended to serve as central hubs that connect various health care tools like electronic health records, virtual care, health monitoring apps, and online pharmacy and lab portals with the data they generate, such as patient records, lab results, and medication information.Source: <a href="https://www.deloitte.com/us/en/insights/industry/health-care/life-sciences-and-health-care-industry-outlooks/2026-us-health-care-executive-outlook.html" data-mce-href="https://www.deloitte.com/us/en/insights/industry/health-care/life-sciences-and-health-care-industry-outlooks/2026-us-health-care-executive-outlook.html">https://www.deloitte.com/us/en/insights/industry/health-care/life-sciences-and-health-care-industry-outlooks/2026-us-health-care-executive-outlook.html</a>The Deloitte Center for Health Solutions surveyed 120 C-suite executives (including senior vice presidents and vice presidents) from large US health systems and health plans between August and September 2025. The organizations represented include multihospital systems, independent hospitals, academic medical centers, public health authorities, and a range of health plans (national, provider-sponsored, and regional or Blue Cross and Blue Shield–affiliated), each with annual revenues over US$500 million. The survey aimed to identify the key trends executives expect will shape their organizations’ strategies in 2026 and to learn what actions they plan to take in response.

Nelson Advisors featured in the Deloitte '2026 US Health Care Outlook' Report

European HealthTech this week is centred on EHDS data‑sharing rules, EU‑level digital health funding, and continued AI‑heavy startup investment across the continent. UK NHS digital programmes and EU grant schemes are also shaping demand signals for virtual care, AI triage, and infrastructure plays going into 2026.​EHDS and data governanceThe European Health Data Space Regulation, entering into force in 2025, creates a common framework for primary and secondary use of health data, with phased milestones from 2025–2029 for cross‑border exchange and secondary research use.​Member States must stand up National Digital Health Authorities and Health Data Access Bodies, enabling federated access via HealthData@EU and opening new opportunities for AI, RWE and digital therapeutics vendors.​EU digital health strategy and eventsRecent EU communications highlight that all Member States now provide some form of electronic health record access, with accelerated investment in e‑prescriptions, AI integration and digital governance to boost productivity and resilience.​High‑profile European digital health summits have focused on EHDS, cross‑border EHR interoperability and “One Health” data strategies, underlining that rules and governance, not core technology, are now the main bottleneck for scale.​UK NHS digital and virtual careA new UK reference guide from NHS Confed and national digital programmes outlines up to £10 billion in NHS technology and digital transformation spending by 2028/29, with priorities around the NHS App, virtual wards and AI infrastructure.​The NHS App is being positioned as the single gateway to services, with integration of wearables, remote monitoring and AI‑powered advice/triage tools, creating a favourable environment for UK‑ and Europe‑focused HealthTech vendors.​Funding, grants and AI focusEU programmes such as EU4Health and Digital Europe have earmarked substantial digital health funding, particularly for AI, interoperability, cybersecurity and cross‑border infrastructure, often blended with VC rounds as non‑dilutive capital.​2025 funding analyses show multi‑billion‑euro HealthTech capital deployment in Europe, with a clear tilt toward AI‑driven ventures and infrastructure (data platforms, workflow tools), supported by reimbursement schemes like DiGA and similar national models.Ecosystem initiatives and callsEIT Health’s 2025 “Digital Transformation of Healthcare” flagship call is steering funding into patient‑centred digital health solutions and evidence generation for CE‑marked digital medical devices entering EU markets.​EU‑backed projects such as DigitalHealthEurope and related EHDS implementation initiatives continue to feed standards and policy recommendations, shaping market access conditions for HealthTech vendors across Member States&gt;&gt;&gt;European MedTech this week is dominated by MDR/IVDR regulatory moves around EUDAMED, EU innovation/health packages, and continued capital formation for MedTech and digital health scale‑ups heading into 2026. Imaging, AI platforms, and late‑stage MedTech funding vehicles remain key themes, with Europe‑focused co‑investment structures and hospital‑facing workflow innovation in focus.​Regulation and MDR/IVDR movesThe European Commission is progressing a broader health and innovation package that includes targeted simplification of MDR/IVDR, aiming for a more efficient and predictable system for device approvals.​A central element is phased mandatory application of EUDAMED modules, tightening post‑market surveillance, vigilance and economic operator registration, while still trying to avoid supply disruptions for legacy devices.​EUDAMED and legacy timelinesFrom 2025, Regulation (EU) 2024/1860 introduces new information obligations, stepwise activation of EUDAMED modules, and extended transition periods for many legacy devices and IVDs.​Legacy IVDs can now stay on the market up to 2027–2029 depending on risk class, while many higher‑risk legacy devices under MDD/AIMDD have transition windows to 2027–2028, easing near‑term cliff‑edge risks for manufacturers.​Capital formation and fundingA €150 million co‑investment vehicle between the European Investment Bank and Angelini Ventures (€75 million each) is being finalised to support 7–10 European biotech, MedTech and digital health companies at market‑launch/scale‑up stage.​ Broader 2025 analyses show multi‑billion‑euro healthtech funding in Europe, with most recent capital flowing into AI‑driven ventures and digital infrastructure, supported by EHDS‑aligned policies and national reimbursement schemes such as DiGA‑style frameworks.​ Market and M&amp;A signals Commentators tracking 2025 MedTech dealflow note ongoing strategic consolidation, particularly in areas like ophthalmology clinics and robotics, as platforms seek pan‑European scale and integrated care models.​There is a visible tilt toward later‑stage, infrastructure‑heavy assets and imaging/diagnostics software, as hospital buyers prioritise workflow integration and data platforms over point solutions.​Imaging, AI and hospital ITEuropean majors such as Siemens Healthineers and Philips are pushing next‑generation MRI/CT with deeply embedded AI and energy‑efficiency features, reinforcing Europe’s strength in high‑end imaging systems plus software.​Consolidation in imaging IT (e.g., large‑cap acquisitions of PACS/VNA and advanced imaging software vendors) is reshaping the competitive landscape in EU hospitals, intensifying rivalry with incumbents like Agfa and Sectra on enterprise imaging platforms.To discuss how Nelson Advisors can help your HealthTech, MedTech, Health AI or Digital Health company, please email<a data-mce-href="mailto:lloyd@nelsonadvisors.co.uk" href="mailto:lloyd@nelsonadvisors.co.uk" title=" lloyd@nelsonadvisors.co.uk" target="_blank" rel="noopener" data-mce-selected="inline-boundary"> lloyd@nelsonadvisors.co.uk</a>

This Week in European HealthTech and MedTech: 30th December 2025

Goldman Sachs expects a strong, innovation‑driven M&amp;A cycle into 2026, with healthcare one of the core beneficiaries of abundant capital, AI adoption and a more constructive regulatory backdrop. While the firm does not publish a standalone “healthcare‑only 2026 M&amp;A outlook” publicly, its global M&amp;A and equity views, combined with external synthesis of their comments, point to higher healthcare deal volumes and a rising share of large, transformative transactions.Big picture: Goldman’s 2026 M&amp;A stanceGoldman frames 2026 M&amp;A as a “think big, build bigger” phase, driven by strategic repositioning and scale, powered by AI and ample public/private capital.Management has publicly described the outlook for M&amp;A into 2026 as “very encouraging,” expecting current momentum to continue rather than fade.External analysis that leans on Goldman’s numbers suggests global M&amp;A volumes could approach or exceed the prior 2021 record, with a particular pickup in mega‑deals (above 5 billion dollars).Healthcare’s role in that thesisRecent materials reference healthcare as one of the sectors leading risk‑asset performance into 2026, supported by resilient earnings and structural demand.Sector commentary across banks (and echoed in independent write‑ups of Goldman’s outlook) highlights healthcare as a prime user of AI, data platforms and automation, which in turn pulls in both strategic and financial buyers via M&amp;A.Healthcare is repeatedly cited among the top beneficiaries of improved financing conditions and more deal‑friendly antitrust stances, enabling larger, more complex combinations.HealthTech / MedTech‑specific implicationsExternal healthcare M&amp;A forecasts that reference Goldman’s global deal value expectations project accelerating HealthTech and MedTech consolidation in 2026, with deal flow shifting from numerous small transactions to fewer, higher‑value platform deals.Hotspots flagged in these syntheses include AI‑enabled revenue cycle and workflow platforms, advanced diagnostics and data/AI infrastructure, neurovascular and other high‑growth therapeutic areas, and clinically validated digital therapeutics with clear reimbursement pathways.Large strategics and PE are expected to use M&amp;A to acquire AI and GenAI capabilities rather than build them, especially to protect margins and address patent cliffs or pricing pressure. Deal structure, scale and financing The 2026 setup assumes stabilising or easier credit markets, which lower the cost of leveraged buyouts and corporates’ ability to fund larger all‑cash or cash‑plus‑stock deals. With CEO confidence recovering and equity markets still constructive (though with slower expected returns than 2025), stock‑for‑stock and mixed consideration deals become more attractive, particularly for sizeable healthcare transactions. Forecasts call for modest growth in US deal volumes by count but disproportionately higher growth in aggregate value, reflecting a greater share of large and mega‑deals rather than a pure volume reboundSource: <a href="https://www.goldmansachs.com/what-we-do/investment-banking/insights/articles/2026-ma-outlook">https://www.goldmansachs.com/what-we-do/investment-banking/insights/articles/2026-ma-outlook</a>

Goldman Sachs - Healthcare M&A forecasts and predictions 2026

Morgan Stanley’s 2026 outlook identifies Healthcare as one of its top overweight sectors, projecting a significant "revival" after years of relative underperformance. This optimism is driven by a transition from a defensive, inflation-hedging posture to a growth-oriented "late-cycle" phase characterised by rate cuts, fiscal stimulus and a broadening of corporate earnings.For MedTech, the narrative for 2026 is centered on a "clearing event", where the market moves past post-pandemic inventory destocking and supply chain shocks toward a more "benign operating environment."Key Investment Themes for 2026Morgan Stanley’s strategists, including Chief Global Cross-Asset Strategist Serena Tang, highlight several pillars for the healthcare recovery:1. The "K-Shaped" Recovery &amp; M&amp;A ResurgenceThe sector is seeing a sharp bifurcation. Quality assets, those with durable growth and high return on invested capital (ROIC), are expected to command premium valuations.M&amp;A Uptrend: After reaching a three-decade low relative to GDP, M&amp;A activity is firmly in an uptrend. Morgan Stanley anticipates that 2026 will see medtech companies deploying capital with "greater precision," using divestitures of non-core assets to fund acquisitions in high-growth procedural segments like cardiovascular and neurostimulation.Private Equity Influence: PE-backed firms are moving away from "growth-at-all-costs" toward profitable scalability, often acting as the primary engine for deal volume in the mid-market. 2. AI as an Efficiency Enabler (Not Just Hype) Morgan Stanley views 2026 as the year AI moves from speculative "agentic" promises to measurable operational impact.Commercial Applications: AI is being integrated into robotic-assisted surgery, predictive monitoring, and diagnostic imaging to improve patient outcomes and system resilience. Workflow Integration: "Tech-enabled" medtech businesses that can reduce clinician burnout and fit into existing hospital workflows (using standards like FHIR and DICOM) are prioritised. 3. Structural Shifts: Lower-Acuity &amp; Home Care A major theme is the migration of care away from expensive hospital settings.At-Home Diagnostics: Growth is expected in wearable cardioverter defibrillators (WCDs) and at-home monitoring devices. The "Plug-and-Play" Hospital: Investment is flowing into modular clinical spaces that allow for rapid deployment of new devices and robotics without major infrastructure rebuilds. 4. Regulatory &amp; Policy "Clearing" While 2025 was marked by uncertainty regarding drug pricing and tariffs, 2026 is viewed as a year where the market gains clarity.Inflation Reduction Act (IRA): 2026 marks the first year of negotiated prices for key Medicare drugs, which Morgan Stanley notes will create a tailwind for TechBio platforms that promise to reduce the time and cost of R&amp;D. Innovation Surge: A reopening IPO window is expected specifically for diagnostics and minimally invasive technology companies that have clear commercial traction. &nbsp; Comparison of 2026 Healthcare Sub-Sectors MedTech &gt; BullishBioPharma &gt; SelectiveHealth IT &gt; High GrowthLife Sciences &gt; RecoverySource: <a href="https://www.youtube.com/watch?v=uHPoQXAmmEw">https://www.youtube.com/watch?v=uHPoQXAmmEw</a>

Morgan Stanley Investment Themes 2026: Healthcare revival and Bullish on MedTech

The European healthcare technology and services landscape is entering 2026 at a profound inflection point. After a period of post-pandemic recalibration in 2024 and a tentative recovery in 2025, the market is poised for a robust, albeit structurally transformed, resurgence in mergers and acquisitions (M&amp;A). The defining theme for 2026 is "Industrialisation." &nbsp;&nbsp; This concept signifies a departure from the fragmented, venture subsidised experimentation that characterised the 2019–2022 era, moving instead toward scalable, profit generating platforms that leverage operational leverage, regulatory fortitude and vertical integration to dominate their respective sub-sectors. &nbsp;&nbsp; The consolidation wave of 2026 will not be a rising tide that lifts all boats. Instead, it will be defined by a stark bifurcation in asset desirability and deal rationale. On one side of the ledger, "Analog" healthcare services, encompassing veterinary, dental, ophthalmology and fertility clinics will witness continued intensified "buy-and-build" activity. This is driven principally by private equity (PE) sponsors seeking to arbitrage highly fragmented markets, particularly in Southern and Eastern Europe, where entry multiples remain attractive relative to the saturated markets of the UK and the Nordics. On the other side, "Digital" and high-technology segments, including AI-enabled radiology, digital pathology and tech-enabled home care, will experience strategic consolidation. &nbsp;&nbsp; Here, hardware incumbents and large-cap technology firms will acquire software innovators not merely for growth, but to secure data sovereignty and "compliance moats" in the face of an increasingly rigorous EU regulatory architecture. &nbsp;&nbsp; Three primary catalysts will underpin the deal flow in 2026, creating a unique pressure cooker for M&amp;A activity: &nbsp;&nbsp; First, Regulatory Darwinism will force a clearing event. The full implementation of the EU Medical Device Regulation (MDR) and In Vitro Diagnostic Regulation (IVDR) has created a capital-intensive barrier to entry that is largely untenable for stand-alone Small and Medium-sized Enterprises (SMEs). The costs associated with Notified Body certification and clinical data generation act as a guillotine for undercapitalized firms, driving them into the arms of larger strategics who possess the necessary regulatory infrastructure. Simultaneously, the new EU AI Act and Digital Omnibus introduce complex compliance requirements for high-risk AI systems, effectively barring new entrants who lack the resources for robust data governance and post-market surveillance. &nbsp;&nbsp; Second, the Private Equity Liquidity Cycle is reaching a critical maturity. With approximately $2.5 Trillion in global dry powder and a significant backlog of assets from the 2019–2021 vintage requiring exit, PE firms are under immense pressure to return capital to Limited Partners (LPs). However, with the IPO market remaining selective and focused only on assets with proven profitability and scale, sponsors will increasingly utilise continuation funds and secondary buyouts to drive consolidation. This allows them to hold high performing assets for longer, financing further add-on acquisitions to build pan-European champions before an eventual exit. &nbsp;&nbsp; Third, the Structural Shift to Outpatient and Home Settings is reallocating capital. Health systems across Europe, burdened by aging populations and workforce shortages, are aggressively pushing care out of high cost hospital settings. This is fuelling a massive capital rotation toward technologies and services that facilitate "hospital-at-home" models, remote monitoring and decentralised diagnostics. &nbsp; M&amp;A in 2026 will heavily favour assets that enable this transition, such as tech-enabled home care providers and outpatient surgery centres, which offer an immediate release valve for strained public health budgets. &nbsp;&nbsp; This report provides an analysis of these dynamics, dissecting the market into key verticals of consolidation, financial mechanisms, and regional hotspots to offer a comprehensive outlook for 2026.Source: <a href="https://www.healthcare.digital/single-post/which-sub-sectors-of-european-healthtech-and-medtech-are-most-likely-to-see-consolidation-in-2026">https://www.healthcare.digital/single-post/which-sub-sectors-of-european-healthtech-and-medtech-are-most-likely-to-see-consolidation-in-2026</a>To discuss how Nelson Advisors can help your HealthTech, MedTech, Health AI or Digital Health company, please email <a data-mce-href="mailto:lloyd@nelsonadvisors.co.uk" href="mailto:lloyd@nelsonadvisors.co.uk" title="lloyd@nelsonadvisors.co.uk" target="_blank" rel="noopener" data-mce-selected="inline-boundary">lloyd@nelsonadvisors.co.uk</a>

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Nelson Advisors featured on the HLTH Europe 2026 Agenda

Nelson Advisors featured in the Deloitte '2026 US Health ...

This Week in European HealthTech and MedTech: 30th Decemb...

Goldman Sachs - Healthcare M&A forecasts and predictions ...

Morgan Stanley Investment Themes 2026: Healthcare revival...

European HealthTech and MedTech Consolidation Outlook 202...