Explore the private equity exit landscape in healthcare and life sciences. Learn about market trends, key challenges, and strategies for successful exits, including leadership readiness, compliance, and cultural resilience.
The healthcare and life sciences sectors are among the most dynamic and complex industries, marked by rapid innovation, stringent regulation and a relentless focus on patient outcomes. For private equity (PE) investors, these sectors offer significant opportunities for value creation but also present unique challenges—especially when preparing for an exit strategy. Whether the exit is via trade sale, secondary buyout, or IPO, careful preparation is essential to maximise value and ensure a smooth transition. At Boyden, we understand the intricacies of this landscape and have played a pivotal role in guiding PE-backed businesses through successful healthcare and life sciences exits.
The PE-Backed Exit Landscape in Healthcare & Life Sciences
PE ownership in healthcare and life sciences is often characterised by accelerated growth, operational transformation, and a focus on building scalable, sustainable businesses. Exits represent the culmination of this journey and the realisation of investment returns, but the path is rarely straightforward. Regulatory scrutiny, evolving reimbursement models, and the need for robust clinical and commercial leadership all add layers of complexity. PE investors and management teams must ensure that businesses are not only financially attractive but also operationally resilient and strategically positioned for future growth. Achieving this requires a holistic approach to exit readiness, encompassing governance, talent, compliance, and culture.
Market Trends and Key Challenges in Private Equity Exits
Recent years have seen global healthcare private equity deal value reach $115 billion in 2024, the second-highest on record, with several transactions exceeding $5 billion (Bain & Company, 2025). However, the total number of deals declined by 7.6%, from 1,135 in 2023 to 1,049 in 2024 (Private Equity Stakeholder Project, 2025). Life sciences exits generated nearly a quarter more value in 2024 than in 2023, despite fewer exits (Moss Adams, 2024), while overall healthcare exit deal value fell from $247 billion in 2023 to $200.8 billion in 2024 (Preqin, 2024). The average PE holding period reached a 20-year high of 7.1 years in 2023, reflecting a greater focus on leadership stability and value creation (Kirby Bates Associates, 2024).
Preparing for exit in these sectors involves navigating several key challenges. Regulatory and compliance risks are ever-present, as buyers scrutinise adherence to industry standards, data privacy laws, and clinical governance. Any gaps can significantly impact valuation or derail a deal. The quality of leadership is another critical value driver; investors and acquirers seek evidence of a high-performing executive team with a clear succession plan, as over-reliance on a founder or key individual can be a red flag. Operational scalability is essential, as PE-backed businesses are often in rapid expansion phases, and demonstrating that systems and teams can scale with growth is vital for attracting premium valuations. Cultural alignment is also crucial, as mergers, acquisitions, and IPOs can disrupt organisational culture, and ensuring resilience is key for post-exit integration and long-term success.
Steps to a Successful Private Equity Exit
Successful exit preparation begins early, ideally from the outset of PE ownership. Establishing clear objectives, timelines, and roles ensures stakeholder alignment, and regular communication between the PE sponsor, board, and management team is crucial. A robust leadership team is the cornerstone of exit readiness, and independent assessments help identify strengths, gaps, and development needs. Succession planning for all critical roles reduces key person risk and reassures potential buyers.
Thorough reviews of operational processes, regulatory compliance, and risk management frameworks are essential, with proactive attention to any deficiencies and ensuring documentation is audit-ready. Articulating a compelling growth story, supported by robust data and market insights, and highlighting differentiators such as proprietary technology or market access can further enhance buyer interest. Retention strategies for key talent, including incentives and communication plans, foster a culture of transparency and adaptability, preparing teams for the changes that come with new ownership.
Boyden’s Role in the Healthcare & Life Sciences Exit Journey
At Boyden, we partner with PE-backed healthcare and life sciences businesses at every stage of the exit process. Our expertise spans executive search, leadership assessment, and interim management, enabling us to deliver tailored solutions that drive value and mitigate risk. We work closely with PE sponsors and management teams to ensure that the right leaders are in place to drive growth and navigate the complexities of exit. In particular, the interim executives in our network are adept at “holding the hand” of businesses, guiding them through the sale process and preparing them for what lies ahead. Having successfully navigated these journeys many times before, they are often brought in specifically for their proven track record in leading organisations through complex exits.
Our global reach and sector expertise allow us to identify and attract top talent for both permanent and interim roles. Boyden’s rigorous assessment methodologies provide an objective view of leadership capabilities and potential, helping clients build robust succession plans and ensuring continuity—a critical factor in buyer due diligence. We also support clients in managing cultural transitions, fostering engagement, and maintaining performance through periods of uncertainty.
Our advisory services help align culture with strategic objectives, enhancing readiness for new ownership. Strong governance is a hallmark of exit-ready businesses, and Boyden advises on board composition, governance structures, and best practices to meet the expectations of sophisticated buyers and public markets.
Case Study: Supporting a Successful Exit
A recent example saw Boyden support a PE-backed healthcare technology company in preparing for a secondary buyout. Our team conducted a comprehensive leadership assessment, identified gaps in the executive team, and placed a new Chief Commercial Officer with deep sector expertise. We also advised on succession planning and cultural integration, enabling the business to present a compelling value proposition to buyers. The result was a successful exit at a premium valuation, with a seamless transition to new ownership.
Preparing for exit in a PE-backed healthcare or life sciences business is a complex, multi-faceted process. Success depends on early planning, strong leadership, operational excellence, and cultural resilience. Boyden’s deep sector expertise and tailored advisory services make us the partner of choice for PE investors and management teams seeking to maximise value and ensure a smooth transition. By focusing on people, processes, and culture, we help our clients navigate the exit journey with confidence.
For more insights on private equity exit strategies in healthcare and life sciences, or to discuss how Boyden can support your leadership and succession planning needs, contact our London office or visit our Executive Search Services page.
