Scalable Sustainable Defendable: The European HealthTech and MedTech M&A Playbook for 2026

Looking ahead at the 2026 HealthTech M&A market, Nelson Advisors will continue to guide founders and investors to build and evidence scalable, sustainable and defendable businesses in order to attract strategic buyers and secure high valuation deals.

Here is the playbook we deliver week in and week out, grounded in current market dynamics, based on a front row seat view of the industry.
  
Scalable > UK and Europe

Prioritise technologies with cross-border potential and operational efficiency. 
 
European buyers, including US firms seeking global expansion, are targeting solutions like telehealth, AI-driven diagnostics, and remote patient monitoring (RPM) that can scale across diverse healthcare systems. 

The UK’s NHS and European integrated care systems (ICSs) are driving demand for interoperable platforms that integrate seamlessly into existing infrastructures.

For example, a telehealth platform with proven adoption in the UK could scale into Germany or France by aligning with local regulations and workflows. 

Founders should demonstrate scalability through a growing user base, low-cost expansion models, and partnerships with regional healthcare providers, capitalising on the trend of increased cross-border deals.

Sustainable > UK and Europe
  
Focus on financial resilience and alignment with value-based care. 

The UK healthtech sector, valued at £34.3 billion annually, has seen a funding pullback since 2021, with digital health investment dropping 34% in 2023 to £835 million. 
  
High interest rates and inflation have exposed companies with high burn rates, particularly in overcapitalised segments like niche telehealth. 
  
Buyers are prioritising firms with strong revenue growth (20%+ YoY), profitability and recurring revenue models, such as SaaS platforms for patient engagement. 
  
For instance, a company offering RPM for chronic disease management with NHS contracts can demonstrate sustainable revenue. 
  
Founders should optimise costs, secure long-term payer agreements and target preventive care solutions, which are gaining traction as healthcare systems shift toward outcome-based models.

Defendable > UK and Europe
  
Build moats through technology, partnerships, regulatory compliance, and cybersecurity. credentials.
  
Buyers in the UK and Europe value companies with strong intellectual property (IP), such as patented AI algorithms or FDA-cleared devices, which provide competitive barriers. 
  
The sector faces intense cybersecurity threats, with breaches costing £1.3 million each in the UK, making robust data protection a priority. 
  
Regulatory hurdles, like antitrust scrutiny and evolving telehealth laws, also demand compliance readiness. A healthtech firm with a secure, GDPR-compliant platform and a regulatory roadmap such as a predicate product for clearance, stands out. 
  
Deep integration into clinical workflows, like a diagnostics tool embedded in NHS systems, further enhances defensibility by making displacement difficult.
  
Playbook > UK and Europe
  
Target strategic buyers like NHS aligned players or private equity firms seeking to bolster digital capabilities. 
  
Showcase key metrics: customer retention, revenue multiples (currently 4-6x for high-quality firms), and clinical outcomes (eg. 25% cost reduction in patient care). 

De-risk deals by addressing regulatory and cybersecurity concerns upfront, ensuring transparency with audited financials and compliance certifications.

Finally, align with market trends like AI, value-based care, and mental health solutions, while avoiding saturated segments like general telehealth, where buyer interest has waned.
  
By focusing on scalability across borders, sustainable financial models, and defendable tech and compliance, healthtech founders in the UK and Europe can navigate the 2025 M&A market and secure premium deals with strategic or financial buyers.