Video

Pharma services M&A: Positive sentiment in a pioneering sector

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A year of high deal volumes is driving optimism in pharma services. Watch this video to catch up on the trends and get guidance on planning your own transactions, including preparing for an exit.
Contents

In 2024 there were 113 deals in the pharma services sector. Abi Godfrey, Corporate Finance Director, and Peter Jennings, Head of Private Healthcare, discuss what's happening, and what lies ahead: 

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These are the key takeaway from their conversation... 

  • Market dynamics, including R&D spending, market complexity, investor appetite, and increasing multiples are influencing pharma services businesses and M&A activity 

  • Deal activity is high in the mid-market, as niche players provide consolidation opportunities among international and private equity-backed buyers

  • International buyer appetite is strong, and we've seen increased competition from the US, Asia, and India

  • The recent tariff policy changes haven't had a major impact on pharma services because the focus is on goods 

  • The UK is a centre of excellence; supported by an academic community driving innovation, and R&D tax incentives making the UK an attractive location to start a business

  • Regulations are international, but the sector is adaptive and open to changes

  • Client diversification is a key risk, especially given current economic conditions – broadening customer concentration and geographical footprint is key to reduce the risk 

  • In advance of an exit businesses need to consider intellectual property protection, diversification, and focusing on international opportunities

For further insight and guidance, get in touch with Abi Godrey or Peter Jennings