The numbers are in and merger/acquisition deal volume in the health and life sciences market sector has dropped to the lowest level in ten years. That was a key finding of a new analysis—KPMG 2026 Healthcare & Life Sciences Investment Outlook. But within that uber trend, transactions actually increased in community-based health services and the tech sector.

But executive sentiment is positive, almost two-thirds (67%) expected to conduct more M&A in the year ahead. And over half of these executives (51%) expect valuations to be up as well.

When asked what factors would affect their M&A plans for the year ahead, the responding executives had a long list. 36% said that high valuations would have the most impact—followed by 31% who are uncertain of the…