{"id":432525,"date":"2026-01-27T10:04:10","date_gmt":"2026-01-27T10:04:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/432525\/"},"modified":"2026-01-27T10:04:10","modified_gmt":"2026-01-27T10:04:10","slug":"where-healthcare-exits-are-heading-in-2026-healthcare","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/432525\/","title":{"rendered":"Where Healthcare Exits Are Heading In 2026 – Healthcare"},"content":{"rendered":"

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SR<\/p>\n

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McDermott Will & Schulte<\/p>\n


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More<\/p>\n


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\n \"McDermott
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\n As we look to 2026, exits aren’t just about timing. Dealmakers are utilizing process, planning, and creativity to find new paths to liquidity. \n <\/p>\n


\n United States
\n Food, Drugs, Healthcare, Life Sciences \n <\/p>\n


\n To print this article, all you need is to be registered or login on Mondaq.com. \n <\/p>\n

As we look to 2026, exits aren’t just about timing.
\nDealmakers are utilizing process, planning, and creativity to find
\nnew paths to liquidity. Investors across healthcare sectors are
\nlooking to dynamic opportunities while integrating flexible exit
\npathways and regulatory readiness to maximize values.<\/p>\n

At McDermott Will & Schulte’s HPE NYC 2025 conference,
\nindustry leaders explored new sectors alongside investors’
\nshifting focus to innovative and deliberate exits. Here, we
\ncontinue the conference conversations with a review of emerging
\nopportunities and strategic exits amid regulatory developments.<\/p>\n

In Depth<\/p>\n

Emerging opportunities<\/p>\n


\nDevelopment and commercialization
\npartnerships. Strategic acquirers are increasingly
\ntargeting tech-enabled contract research organizations and
\ncommercialization platforms as initial public offerings (IPOs) and
\ncross-border activity lag. To illustrate, our event panelists noted
\ninvestments in drug manufacturing, supply chains, and drug
\nadministration (including pharmacies and infusion centers).
\nLiquidity is consolidating around those strategic acquirers, which
\nare historically slower to get to closing and do not pay a private
\nequity premium.
\n
\nPharmaceutical industry. HPE NYC panelists
\nexpect increased mergers and acquisitions activity in the
\npharmaceutical industry. Specifically, looming patent cliffs and
\nthe resulting need to replace lost revenue make late-stage,
\nde-risked assets strong targets with strategic advantages.
\nAdditionally, the panelists pointed to potential for partnerships
\nin artificial intelligence (AI) and other technologies, which would
\nenable the development of increasingly comprehensive data
\ncollection and maintenance via life sciences services.
\n
\nBehavioral health. Demand and competition
\ncontinued to grow in the behavioral health sector, with valuation
\nrates tracking the realities of contract structures, operational
\nstability, and reimbursements. Notably, the increasing role of
\ntechnology is helping enhance success rates and implement
\nevidence-based care while boosting efficiency in the sector.
\n
\nInvestor-payor collaboration. Our panelists
\npointed to the desirability of pursuing potential partnerships to
\nmitigate current pressures facing physician groups. Collaboration
\nwith payors would help reduce reimbursement lags and offer
\nopportunities to launch lab services. <\/p>\n

\"1736606a.jpg\"\/<\/p>\n

Creative exits<\/p>\n


\nFlexible pathways. Private equity is turning
\nto continuation vehicles and sponsor-to-sponsor trades for flexible
\nexit pathways, maximizing value as the market’s appetite for
\nIPOs is diminished.
\n
\nTrial execution. Platforms that enhance trial
\nexecution, including in the oncology and central nervous system
\nspheres, offer another framework for creating exits. HPE NYC
\npanelists pointed out that, given the financial risks in the trial
\narena, venture capital investment is common.
\n
\nPhysician practice management (PPM). The
\npanelists further highlighted the stability and potential for tech
\nenablement in the PPM sector, predicting an uptick in exits over
\nthe next few years. PPM organizations are less impacted by the
\nmacro dynamics and regulatory issues affecting other industry
\nbusinesses, and the improvements driven by technology should
\nsolidify exit opportunities. <\/p>\n

Regulatory readiness<\/p>\n

Investors face growing risks from fragmented state privacy laws,
\nHIPAA and Federal Trade Commission enforcement, and US Food and
\nDrug Administration scrutiny of AI. In fact, 50% of HPE NYC 2025
\nattendees believe that navigating complex regulatory and compliance
\nlandscapes is the most significant nonfinancial challenge faced by
\nprivate equity firms investing in healthcare. Federal and state
\nregulators are imposing new notice and approval requirements that
\nhave significant transaction implications for healthcare providers,
\nindustry operators, dealmakers, and investors.<\/p>\n


\nBaby HSR. Modeled on the federal
\nHart-Scott-Rodino (HSR) Act, “Baby HSR” or
\n“mini-HSR” laws are state laws that impose notice and
\napproval requirements on parties to certain healthcare
\ntransactions. While the timing and details vary by state, event
\npanelists noted concern that these relatively new regulations will
\ndelay deals. As an initial matter, parties should monitor Baby HSR
\nlaws in the states in which they operate (or plan to operate) and
\nconsider the impact that doing business in a state may have on the
\ntiming of future exit transactions.
\n
\nWork with lawmakers. When new laws are
\nproposed, it may be wise to turn to lobbyists or public relations
\nfirms in an effort to minimize current deal disruptions or future
\nexit delays. Building relationships with lawmakers is key, as is
\ncommunicating the positive results healthcare investors have
\nachieved \u2013 and continue to achieve \u2013 in their
\ncommunities.
\n
\nReadiness audits. A review of the relevant
\nstate’s filing requirements is essential before going to
\nmarket. Readiness audits completed in conjunction with regulatory
\npreparedness help effectively position assets in both strategic and
\nsponsor exits. In addition to managing the deal timeline, that
\nanalysis may provide alternative structures to minimize filing
\nrequirements. <\/p>\n

\"1736606b.jpg\"\/<\/p>\n

Conclusion<\/p>\n

Looking toward increased activity in dynamic sectors and
\ncreative exit opportunities, stakeholders should consider the
\nimpact of regulatory reforms across the healthcare industry.<\/p>\n

As always, we look forward to continuing the conversation with
\nour clients and partners. To explore these topics further, please
\nreach out to a member of the firm’s Health & Life Sciences Practice Group<\/a>.<\/p>\n

The content of this article is intended to provide a general
\nguide to the subject matter. Specialist advice should be sought
\nabout your specific circumstances.<\/p>\n

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