If you've been thinking about selling your practice but waiting for the right moment, the data from the past few months suggests that moment may be arriving right now.
‍

The healthcare M&A market spent most of 2023 and 2024 in a holding pattern. Higher interest rates made acquisitions more expensive to finance. Buyers pulled back. Sellers who needed a certain price held off. The result was a market that felt slow, uncertain, and frustrating for anyone looking to exit.
‍

That has changed. Several forces are coming together at the same time in 2026, and they're all moving in the seller's direction.
‍

The numbers behind the shift
‍

North American healthcare M&A deal volume grew by 30% in 2025, reaching $247 billion in total value, according to Mergermarket data. That's coming off a low base, but the direction is unmistakably upward. And the momentum heading into 2026 is stronger still.
‍

In February 2026 alone, deal value for transactions over $1 billion surged 319% compared to the same period a year earlier, according to EY's monthly M&A activity report. That's not a blip. That's a market waking up.
‍

PwC's Health Services Deals team expects deal value and volume in healthcare to grow again through 2026, noting that "high-quality, cash-generating assets with clear reimbursement visibility are returning to market." Healthcare is currently one of the three most active sectors in U.S. M&A alongside technology and energy.
‍

More buyers are competing for fewer high-quality practices. That competition is good for sellers.

‍

Private equity has over a trillion dollars waiting to spend
‍

This is the part of the story that doesn't get talked about enough in conversations about practice sales.
‍

Global private equity "dry powder," which is the industry term for committed capital that has not yet been invested, reached $1.2 trillion in buyout funds alone as of mid-2025, according to Bain and Company's midyear private equity report. Nearly a quarter of that capital, about $300 billion, has been sitting uninvested for four years or longer.
‍

That's significant because private equity funds operate on a clock. They typically have a five to seven year window to invest the money their investors committed. When that clock runs out and the capital hasn't been deployed, fund managers face real pressure. They have to make acquisitions or return the money. Most would rather make acquisitions.
‍

Of that total dry powder, approximately $440 billion is earmarked specifically for smaller companies, which is exactly the market where most independent dental, medical, and chiropractic practices sit. That capital needs a home, and healthcare practices are a well-understood, attractive target for the firms holding it.

‍

Buyers who sat out are coming back
‍

Private equity buyout activity more than doubled in total value in 2025, reaching $38 billion compared to just $16.4 billion in 2024. That acceleration is expected to continue into 2026 as interest rates stabilize and financing conditions improve.
‍

But it's not just PE groups returning. DSOs that paused aggressive acquisition programs during the high-rate environment of 2022 and 2023 are rebuilding their pipelines. Several DSO platforms that went quiet for two years have recently hired new vice presidents of business development and been given mandates to close deals. Strategic buyers, including some large distributors like Cardinal Health and Cencora, are also now acquiring physician practices directly as part of vertical integration strategies.
‍

More buyers in the market means more competition for the same pool of quality practices. That competition tends to push prices up and give sellers more leverage in negotiations.
‍

Interest rates have eased from their peak
‍

One of the biggest brakes on healthcare M&A in 2022 and 2023 was the rapid rise in interest rates. When borrowing became expensive, buyers had to pay less for practices in order to make the math work on their returns. Sellers who weren't willing to accept lower prices simply waited.
‍

The Federal Reserve cut rates three times in late 2025, bringing the federal funds rate to a range of 3.50% to 3.75%. That's still not the near-zero environment of 2020 and 2021, but it's meaningfully lower than the peak. For practice acquisitions, even a modest decline in borrowing costs can have a significant effect on what a buyer can afford to pay.
‍

When buyers can finance an acquisition more cheaply, they can offer more. That's simple math, and it's playing out in practice valuations right now.
‍

The backlog of practices coming to market
‍

Here is something sellers need to understand about timing. Many of the practices that did not sell during 2023 and 2024 are now entering the market. Owners who held off waiting for conditions to improve are starting to list. And practices that private equity groups acquired several years ago are now being sold again as those funds hit their exit timelines.
‍

More than 63% of active portfolio companies held by private equity in North America have been held for more than four years, well past the typical three to five year investment cycle. Many of those companies are in healthcare. They're going to start coming to market, and when they do, the overall supply of available assets will increase.
‍

This matters for independent practice owners thinking about timing their own exit. Right now, the best quality practices are coming back to market but supply has not yet caught up with demand. That window will not stay open forever. As more practices list over the course of 2026 and into 2027, buyers will have more options, and the competitive pressure that currently works in sellers' favor will ease.

What kinds of practices are getting the most attention
‍

Not every practice benefits equally from a hot market. Buyers in 2026 are active, but they're also more disciplined than they were during the 2021 peak. They're not buying everything they can find. They're being selective.
‍

The practices attracting the most buyer interest right now share a few common traits. They have clean, consistent financials across at least three years. They generate predictable cash flow and are not entirely dependent on the owner's personal production. They operate in specialties that are growing or fragmented enough to support continued consolidation, including dental, dermatology, ophthalmology, gastroenterology, behavioral health, and orthopedics.

Geography also matters. Buyers are prioritizing markets where they already have a presence and want to deepen their footprint, or where demand for care significantly outpaces supply.
‍

The practices getting the best offers right now are not necessarily the biggest. They're the ones that are easiest to underwrite quickly, with data that supports the asking price from day one.
‍

What sellers should do right now
‍

The window of favorable conditions in 2026 is real, but it is not permanent. Here is what practice owners can do to take advantage of it.
‍

Get your financials in order. Three years of clean, consistent books make a practice dramatically easier to sell. If you have add-backs or owner-specific expenses running through the business, document them clearly. Buyers who can understand your numbers quickly are more likely to move fast and pay more.
‍

Know your valuation before you list. Sellers who understand what their practice is worth before they go to market negotiate from a position of strength. Those who don't often accept the first serious offer out of uncertainty, even if it's below market. Get an independent valuation or use a platform that builds one from your actual data.
‍

Don't wait for conditions to get better. Sellers who held off during 2023 and 2024 waiting for the market to improve are now in a much better position. But the same logic applies going forward. Conditions today are favorable. Waiting another year while more practices come to market and the supply-demand balance shifts is a real risk.
‍

Consider all your buyer options. The best deal may not come from the loudest buyer. DSOs and private equity groups get a lot of attention, but individual physician buyers are also active and motivated. A direct sale to the right individual buyer can move faster and often comes with fewer strings attached than a corporate acquisition. Platforms that give you access to all types of buyers give you more leverage to get the outcome you actually want.

‍

What this means for practice owners
‍

The conditions that make 2026 a seller's market in healthcare M&A are not complicated. More buyers are competing for quality practices. Private equity has enormous amounts of capital that has to be deployed. Interest rates have come down from their peak. And sellers who waited through the slow years are now entering a market that has fundamentally shifted in their favor.
‍

That shift will not last indefinitely. The best time to sell a practice is when buyers need what you have and are willing to compete for it. Right now, that describes the market. A year from now, it may not

‍

Navigating today’s healthcare M&A landscape? VentureCare helps buyers and sellers interpret market signals, evaluate opportunities, and execute with confidence. Start the conversation with our team.