Investing in healthcare amid uncertainty

Healthcare investing has never been straightforward but today, uncertainty seems to be the new normal. At the LaingBuisson Investing in Healthcare Conference, I chaired a panel with experienced investors Christian Gylling (Evolen Capital) and Liam Goddard (22TwentyTwo) on what it really takes to back successful healthcare businesses in this environment.
 
We explored how investors are assessing risk, operational capability, and long-term value amid economic shifts, political volatility, and a transformed post-pandemic healthcare landscape. For healthcare operators and management teams, the takeaway was clear; building resilient, future-ready businesses has never mattered more, and investment decisions are sharper and more focused as a result.

Healthcare remains attractive but resilience is critical

Healthcare continues to benefit from long-term demand and structural importance. But assumptions of stability have shifted. The pandemic exposed vulnerabilities in workforce, delivery models, and cost control, showing that historic performance alone is no longer enough.
 
What this means: Be ready to explain how your business performs under pressure and highlight adaptations since the pandemic, particularly around workforce, service delivery, and cost management.

Alignment of vision helps to drive deals

Deals often stall not over valuation, but because buyers, sellers, and funders see the future differently. Investors need confidence in your multi-year growth story, while sellers and capital partners must share your view of risk.
 
What this means: Present a credible growth narrative rooted in current market conditions, not a “return to normal” story. Clearly articulate why investment now makes sense.

Short-term gains must connect to long-term relevance

Some businesses thrive temporarily by filling public-sector gaps, but investors want more than short term wins. Exit value depends on long-term relevance, societal legitimacy and value, and operational sustainability.
 
What this means: Show how today’s performance builds a durable, defensible model that will remain relevant even as public pressures shift.

Reputation and regulatory risk matter particularly in sensitive subsectors

Investors are particularly focused on reputational and enforcement risk in sectors like social care, where regulatory scrutiny is high and operational failures are highly visible. Confidence grows when investors can see strong governance, culture, and embedded compliance processes. 
 
What this means: Demonstrate robust systems for compliance, continuous monitoring, and issue resolution. Be proactive in showing how quality and safety are maintained and how risks are identified and mitigated. Transparency, operational grip, and culture matter as much as financial performance.

Expect deeper, independent diligence

Investors increasingly conduct their own reviews and bring in specialists to test quality, staffing, and systems. Strong regulatory ratings help but do not replace diligence, particularly if those regulatory ratings are historic. 
 
What this means: Prepare for detailed scrutiny. Transparency and cooperation build confidence faster than defensiveness.

Operational strength is a core value driver

Businesses that can manage complexity, operate consistently across multiple sites, and leverage management systems create value beyond finances. Operational excellence is now a key differentiator.

What this means: Invest in systems that enable visibility and consistency. Show how operational insight drives better decisions and outcomes.

Technology and AI are enablers, not standalone strategies

Technology, including AI, adds value when it accelerates processes, improves decision-making, and reduces risk. Investors are wary of tech-led narratives without operational grounding.
 
What this means: Position and use technology as a tool to enhance quality and efficiency, with clear, measurable benefits and realistic limits.

Key takeaway for healthcare operators:

Investors remain interested in the sector, but resilience, credible long-term positioning, operational maturity, transparency, and realistic expectations now matter more than ever. Businesses that demonstrate these qualities continue to attract strong investor interest, even in a cautious market.
 
Thank you to Christian and Liam for sharing their valuable experience and insights. 

For more information, please contact our healthcare and life sciences team.