Bain Says Medtech Deal Value Rebounded in 2025 as Spin-Offs Topped a Third

Medical device dealmaking rebounded in 2025, led by a strong second half and a wave of spin-offs and divestitures, according to Bain & Company's annual medtech mergers and acquisitions report, published on Friday.

Medtech deal value rose year over year and returned to levels above those seen before 2023, supported by renewed strategic confidence and several large transactions, the report says. "The second half of the year was particularly strong, nearly doubling first-half deal value as valuations continued to decline," wrote the authors, Allen Granzberg, Cate Miller Goldstein, Mattias C. Karlsson and Kevin Chang. "Robust dealmaking is likely to continue into 2026."

The report's 2025 figures cover January 1 through November 30, and it measures deal multiples as enterprise value to EBITDA.

Portfolio reshaping

Bain said that while large deals such as Waters' acquisition of BD's biosciences and diagnostics businesses and Stryker's acquisition of Inari Medical drew headlines, dealmaking was still dominated by smaller, targeted transactions.

The standout trend was the rise in spin-offs and divestitures, which accounted for more than a third of strategic deal value in the first 11 months of 2025, a noticeable increase from the previous five-year average, the report says.

The authors pointed to carve-outs by BD and Solventum, along with activity announced by Medtronic and Johnson & Johnson, as signs of a broader shift toward portfolio focus that could keep spin-offs coming in 2026. BD's separation was intended to streamline its portfolio, while Solventum's sale of its purification and filtration unit supported debt reduction, according to the report.

What Bain expects in 2026

The report expects the possibility of even softer valuations to intensify competition for quality assets in 2026, making speed, conviction and disciplined execution essential. Buyers will need to show how they can create more value from an asset than the next-best owner, the authors wrote.

They also warned that separations are hard to get right. Bain research across industries finds that 50% of companies pursuing a separation fail to create any new shareholder value after two years, and 25% destroy a significant amount of value in the process, the report says. Companies will need to be able to separate manufacturing and supply chains to succeed, according to the authors.

The report adds that most headline acquisitions are not building category leaders, and that serial, targeted deals that add capabilities in areas such as robotics, diagnostics or imaging can be more effective.