Distributors are leveraging their central position to acquire assets typically targeted by corporate or health system buyers, such as physician services. This strategic shift transforms them from supply chain "middlemen" into integrated ecosystem players, increasing competition for deals.
Private equity firms are again actively pursuing life sciences carve-outs and platform investments. Their characteristic speed and flexibility are pressuring corporate buyers, who now face increased competition and must adapt their own processes to compete effectively on deals.
Following a cautious 2025, dealmakers now demand tangible evidence of an asset's value. This "proof over promise" approach involves conducting integration planning during due diligence and heavily favoring targets with clearer regulatory pathways to minimize post-acquisition surprises.
After intense scenario analysis during initial tariff announcements, life sciences companies have developed templates to manage trade policy risks. This preparedness has demoted tariffs from a major strategic driver to a manageable operational factor, allowing M&A to proceed with less hesitation.
Companies used the "choppy" 2025 market to re-evaluate post-COVID spending, reduce redundancies, and implement automation. This disciplined cost takeout wasn't just about efficiency; it was about creating the operational and financial readiness to aggressively pursue new deals in the current year.
Over half of life sciences executives believe interest rate decreases would only marginally increase deal volume. Companies now use more sophisticated macroeconomic scenario planning, viewing rate changes as incremental rather than transformative—a significant shift from five years ago.