Frequently asked questions
FAQ's: About Nelson Advisors
Q: What is Nelson Advisors' core specialisation?
A: Nelson Advisors is a highly specialised Mergers & Acquisitions (M&A) advisory firm exclusively focused on the Healthcare Technology sector. This includes Digital Health, HealthTech, Health IT, Consumer Health, Healthcare Cybersecurity, and Healthcare AI companies across the UK, Europe, and North America.
Q: What services does Nelson Advisors offer?
A: Nelson Advisors provides a comprehensive suite of M&A services, including buy-side and sell-side advisory, corporate divestitures, roll-up strategies, and tech asset sales. They also offer strategic advisory services such as Go-To-Market strategies and international expansion, guiding clients on whether to "Build, Buy, Partner, or Sell" to maximise shareholder value.
Q: What makes Nelson Advisors unique in the HealthTech M&A space?
A: Nelson Advisors stands out due to its "Founders for Founders" DNA. Its founding partners have a proven track record of building, scaling, and successfully exiting multiple HealthTech businesses, providing invaluable firsthand insight into the sector's challenges and opportunities. This operational experience, combined with extensive corporate finance expertise, allows them to offer deep industry-specific knowledge and a network that generalist M&A firms cannot match.
Q: Where is Nelson Advisors based?
A: Nelson Advisors is based in Marleybone, London, UK, with a focus on the UK, European, and North American markets.
FAQ's: European Healthcare Technology M&A Markets
Q: What are the current trends in European HealthTech M&A?
A: The European HealthTech M&A market is experiencing a cautious yet discernible rebound in 2025. Key trends include:
Strategic Acquisitions: Larger companies are strategically acquiring innovative startups to broaden product portfolios and extend market reach, particularly in digital health and AI-driven solutions.
Consolidation: The maturing HealthTech market is seeing consolidation, with larger firms acquiring niche players in areas like mental health tech and digital therapeutics.
Focus on AI and Data Analytics: There's significant interest in companies with proven AI solutions and robust data monetisation capabilities, which often command premium valuations.
Telehealth and Remote Patient Monitoring (RPM): Continued demand for scalable and cost-effective care delivery drives acquisitions in these areas.
Cybersecurity and GDPR Compliance: Intensifying cybersecurity threats in healthcare make companies with expertise in data privacy and security prime targets.
Increased Deal Volume: There's a notable surge in M&A deal volume, indicating a shift towards larger, more significant transactions.
Q: What are the key drivers for HealthTech M&A in Europe?
A: Key drivers include improving macroeconomic conditions, substantial private equity "dry powder" (available capital for investment), a pervasive strategic imperative for digital transformation across the healthcare ecosystem, falling interest rates, and a more deal-friendly stance from regulatory bodies like the UK's Competition and Markets Authority (CMA).
Q: What are typical valuation multiples for HealthTech companies in Europe?
A: Valuation multiples can vary significantly by sub-sector and company specifics. As of mid-2025:
Revenue Multiples: Average revenue multiples generally range from 4-6x, with a reported Q1 2025 average of 4.8x ARR. Companies with strong alignment with value-based care models or robust data monetisation capabilities often attract premiums, valued between 5.5-7x ARR. Smaller or unprofitable startups typically see multiples in the 3-4x ARR range.
EV to EBITDA Multiples (for profitable companies): Generally observed between 10-14x, a slight increase from 2024. Certain sub-sectors like European Drugs/Pharmaceuticals and Medical Imaging have seen higher median EV/EBITDA multiples (eg.13.78x for pharma in YTD25).
Q: What challenges do HealthTech founders face in the current market?
A: Common challenges for venture capital-backed HealthTech founders include:
Investor Selectivity: Increased caution from investors, who prioritize clear paths to profitability, strong teams, and scalable models.
Complex Regulatory Pathways: Navigating stringent regulatory requirements (e.g., FDA, GDPR) can be time-consuming and costly.
Slow Adoption by Clinicians and Providers: Difficulty convincing healthcare providers to adopt new technologies, especially if they disrupt workflows or require behavioural changes
Limited Exit Opportunities: While M&A activity is rising, exits for early-stage companies can still be challenging unless they offer highly differentiated value.
Need for Robust Evidence: Investors and adopters demand rigorous clinical and economic evidence, which many startups struggle to fund or conduct.
FAQ's: Companies Seeking M&A, Partnerships or Investment
Q: When should a HealthTech company consider M&A or seeking investment?
A: Companies should consider these options when they are looking to accelerate growth, gain market share, access new technologies or talent, achieve economies of scale, secure an exit for founders / investors, or expand into new geographies. Nelson Advisors typically engages with clients for 6 to 9 months, working with entrepreneurs, boards and investors to assess the optimal "Build, Buy, Partner, or Sell" strategy.
Q: How can Nelson Advisors help a company prepare for an M&A transaction?
A: Nelson Advisors assists clients in all stages of the M&A process, from initial strategic assessment and valuation to identifying potential partners, due diligence, negotiation and deal closure. Their expertise in the HealthTech sector helps clients highlight their unique value proposition, navigate regulatory complexities, and address potential challenges.
Q: What kind of companies does Nelson Advisors typically work with?
A: Nelson Advisors works with a range of HealthTech companies, including those in Digital Health, HealthTech, Health IT, Consumer HealthTech, Healthcare Cybersecurity and Healthcare AI across various stages of maturity, from innovative startups to more established entities and publicly listed organisations on US and European markets.
Q: How can I get in touch with Nelson Advisors for an inquiry?
A: Fill in the Contact Us form on the Contact Us page. Alternatively by emailing one of the Partners directly on [email protected] or [email protected]