How Dealmakers Should Prepare for Healthcare Private Equity Targeted by State Legislatures

Healthcare private equity dealmakers are contending with a paradoxical market: record dry powder and maturing portfolios on one hand, and stiff regulatory headwinds, reimbursement uncertainty, and competition for high-quality assets on the other. While 2025 fell short of the anticipated surge in deal volume, the year closed with notable mega-deals and disciplined pricing—setting the stage for a more active, but still selective, M&A environment. To capitalize on this activity, dealmakers and investors should take steps in preparation for and in negotiating their deals to better ensure success amid regulatory scrutiny.