Black Book Research Flash Survey of 110 VCs, PE partners, and M&A pros exposes shifting priorities from valuation fatigue to cyber-response readiness and integration agility as decisive factors shaping the H2 2026 HCIT investment landscape
NEW YORK CITY, NEW YORK / ACCESS Newswire / August 14, 2025 / Amidst persistent headlines about failed M&A in digital health, a new Black Book Research flash survey conducted with over 100 senior healthcare IT investors reveals a more complex and unexpected set of priorities driving investment decisions as the sector redefines value in a post-pandemic, post-AI hype cycle world.
Unlike recent "deal killer" analyses, the Black Book poll surfaces underreported investor concerns and future-facing diligence trends behind today's late-stage deal roadblocks:
A New Set of Red Flags: What Really Disrupts Deals in 2025?
Valuation Fatigue, But With a Nuanced Twist:
While 74% of respondents confirmed ongoing valuation friction, nearly half (49%) report turning down deals not solely over price, but due to a lack of transparent, forward-looking value creation strategies from sellers. "Price matters but an unclear roadmap to operationalize value is now the biggest hesitation we observed," said Doug Brown, Founder of Black Book.
From Compliance Checklists to Dynamic Risk Management:
68% said regulatory exposure remains a walk-away factor, but many flagged the growing risk of unexpected regulatory drift where evolving policies around AI/ML, telehealth, and interstate data create compliance ambiguity late in a deal. "Everyone expects a HIPAA check but the winners are the targets with adaptive compliance cultures, not just a box of certificates," said Brown,
Integration as Competitive Differentiator:
Rather than simple IT compatibility, 84% now assess a target's organizational agility its ability to navigate cultural, workforce, and process integration post-close. Notably, 29% had aborted deals where integration inflexibility threatened speed to value, even when technology was sound. "Fit is strategic, and agility and cultural alignment are screening criteria now," Brown explained.
A New Set of Questions for Sellers and Founders
Today's HCIT investors are drilling deeper than ever before, seeking evidence that potential acquisitions are not only compliant and financially viable but also resilient, adaptive, and capable of generating sustained value.
In the Black Book flash survey, 58% of investors said they walked away from deals where targets had cybersecurity policies on paper but no proactive cyber-response testing or crisis drills. 61% reported abandoning acquisitions due to vague or unrealistic post-close integration plans, regardless of the target's technical strengths.
Compliance agility is also under the microscope as 68% cited the risk posed by "regulatory drift" as a decisive factor in backing out of late-stage negotiations. And for 44% of respondents, the inability to show consistent performance and measurable ROI across varied healthcare settings, not just handpicked pilot programs, was enough to end talks.
In short, sellers must be prepared to answer how they defend (with live cyber readiness evidence), how they adapt (demonstrating compliance resilience), how they integrate (with detailed, measurable timelines), and how they deliver (with broad, verifiable outcomes) if they want to be truly "deal-ready" in 2026.
Investor Recommendations: Redefine ‘Deal-Ready' in Q4 2025
Based on the data, Black Book Research offers these takeaways for healthcare IT founders and sellers:
Quantify future value creation, not just past growth.
Demonstrate "compliance agility," with proof of adapting to regulatory change.
Prioritize cultural readiness and measurable integration plans, not generic IT blueprints, and
Invest in incident-ready cyber teams; sophisticated investors want evidence of live crisis testing, not paper policies.
About the Survey
Black Book Research conducted an anonymous flash poll between August 5 and 12, 2025, among 110 qualified respondents working in venture capital, private equity, investment banking, and market analysis roles focused exclusively on healthcare IT. Margin of error is ±4% at a 95% confidence level.
About Black Book Research
Founded in 2004, Black Book Market Research LLC is recognized internationally for its independent research and consulting in the healthcare sector and conducts the largest client satisfaction polls in healthcare globally.
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SOURCE: Black Book Research
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