COVERAGE
June 8, 2026
Read time: 3 min
In a recent article in Healthcare Business International, Krist Werling, partner and global head of McDermott Will & Schulte’s Health & Life Sciences practice, provides insight into the key trends shaping private equity investment in healthcare and life sciences.
« Investors are gravitating toward high-quality, growth-ready assets with strong management teams and demonstrable scalability, particularly in areas where technology is unlikely to displace the underlying service, » Krist said. With the valuation gap between buyers and sellers narrowing, he added: « We anticipate more sponsor-to-sponsor activity heading into 2026. »
On structure, Krist noted that flexible deal mechanics – including earnouts, rollover equity, and milestone-linked economics – have become standard tools for allocating risk and aligning stakeholder interests. Looking ahead, he emphasized that governance and operational execution will be critical: « Investors are concentrating interest in use cases with measurable operational impact, even as heightened governance and regulatory scrutiny demand thoughtful deployment strategies.”
