Many factors sparked predictions for increased M&A activity in 2025, including economic recovery and declining interest rates; the latest EY-Parthenon Macroeconomic outlook shows M&A activity is expected to rise 10% in 2025. Madison Dini, a partner in commercial and business litigation practice law, expects an uptick in M&A activity within medical aesthetics and medtech specifically, amid economic factors like lower interest rates and a rapidly evolving industry.
Many factors sparked predictions for increased M&A activity in 2025, including economic recovery and declining interest rates; the latest EY-Parthenon Macroeconomic outlook shows M&A activity is expected to rise 10% in 2025. Madison Dini, a partner in commercial and business litigation practice law, expects an uptick in M&A activity within medical aesthetics and medtech specifically, amid economic factors like lower interest rates and a rapidly evolving industry.
Merger activity occurs when two entities consolidate into one, whereas an acquisition involves one company taking over ownership of another. Dini says M&A activity will most likely take place in the medical aesthetics industry due to the current landscape consisting of manufacturers and technology providers all competing for the same customer base, leading to economic pressures and missed revenue targets, she adds.
“In this environment, M&A becomes a necessary tool for companies looking to acquire competitors, streamline operations and maintain growth trajectories,” Dini says. “Consolidation would allow market leaders to emerge stronger and better positioned for long-term success.”
Statista reported that mergers and acquisitions have become integral to corporate growth as companies gain access to new markets and enhance technological capabilities. Laurel Mintz, founder of Elevate My Brand, says specifically in medical aesthetics, there has been less space for the ‘little guy’ as the cost of doing business has increased significantly.
“I feel that only those who are multi-unit and even national in scale have the resources to maintain staff, marketing and source the best trends in the industry,” Mintz says.
How Big Guys Vs. Little Guys Thrive in M&A Activity
With M&A activity expanding market reach and allowing access to new technologies, consolidation, Dini says, anticipates greater opportunities for existing business owners to buy into larger entities or join multi-practice ownership structures.
Consolidation could allow smaller businesses to align with larger organizations to leverage capital, operational support and scalability, Dini adds. Mintz says independent practitioners struggle with machine and real estate expenses as they grow their consumer base, which is a ‘barrier to entry’ that larger businesses do not face.
While small businesses gain an advantage of survival, Mintz says, larger businesses are able to launch markets in areas they’re unfamiliar.
“Buyouts for smaller struggling companies can be a good thing for those who are trying to exit and oftentimes these are earn out deals or acquihire situations,” Mintz says. “[T]his is especially helpful for larger companies looking to launch in markets they are unfamiliar or unknown in.”
Dini adds that while it may make standalone ownership more challenging, it creates pathways for growth and stability within larger, well-capitalized networks.
Broader Offerings Appeal to Patients and Practitioners in 2025
With technology quickly advancing, particularly as AI integrates into precision accuracy and personalization features, the medtech industry may expect an uptick in M&A activity. This activity will also be spurred on as larger businesses invest in smaller ones to access cutting-edge technology and products to offer a broader, more extensive menu of treatment options that address an array of conditions to a wide range of patients in a competitive market.
In 2025, Dini expects medspas and plastic surgeons to focus on maximizing their investments in companies that offer more than just capital equipment, prioritizing partnerships with businesses that deliver diverse revenue streams, recurring income opportunities and comprehensive service offerings.
“For patients, this M&A activity will likely result in expanded treatment options, enhanced access to innovative technologies and improved service delivery as providers leverage economies of scale to offer a broader range of high-quality solutions,” Dini says.
