2025 Clinical Research Site Market Outlook: Why Now is the Perfect Time to Sell

The clinical research landscape is undergoing a dramatic transformation, and for independent site owners, this shift represents both an opportunity and a call to action. Consolidation is reshaping the industry as large organizations, particularly Site Management Organizations (SMOs), increasingly acquire smaller, independent clinical research sites to meet growing demand. If you’ve ever thought about selling your site, now could be the best time to make your move.

This blog explores the driving forces behind the market’s growth, the advantages of selling, and why Evergreen M&A is uniquely positioned to help you achieve the best outcome for your business. If you have any questions as you’re reviewing, feel free to reach out to our President and Clinical Research Site Advisor, Gary Behler: gary@evergreenforfounders.com.

The Clinical Research Industry is Thriving

The Site Management Organization (SMO) market is among the fastest-growing sectors in healthcare services, benefiting from significant industry tailwinds. A few standout trends include:

• Record-breaking R&D spending: Pharmaceutical R&D expenditures reached $145 billion in 2022-2023, marking a 4.3% year-over-year increase. With the rise of personalized medicine, advanced therapies, and niche disease studies, this figure is expected to continue climbing.
• Growing complexity of clinical trials: Modern trials often involve rare diseases or increased scrutiny or guidelines from the sponsor, creating a need for specialized expertise and operational efficiency that SMOs excel at providing.
• Expanding drug pipelines: The number of drugs in the global R&D pipeline reached 21,300 in 2023, a stark rise compared to 14,900 in 2017, creating unprecedented demand for clinical trial sites.

With these dynamics at play, larger organizations and private equity investors are eager to consolidate smaller sites into scalable networks that can keep pace with the industry’s needs.

What Does This Mean for Independent Sites?

The opportunities for independent sites are enormous, but so are the challenges. Rising costs, patient recruitment hurdles, regulatory scrutiny, and operational inefficiencies make it increasingly difficult for smaller sites to compete.

For example:

• Operational inefficiencies: Independent sites often lack access to centralized technologies and systems, leading to higher overhead costs (25% of revenue, compared to 15% for larger platforms).
• Patient recruitment delays: It takes independent sites an average of 15 days longer to recruit patients for many trials compared to consolidated networks.

Selling your site to a larger group isn’t just about keeping up—it’s about thriving in an industry where scale and resources are becoming prerequisites for success.

Why Selling Now is the Right Move

Timing is everything in business, and the clinical research industry is at a pivotal moment. Here’s why now is the perfect time to consider selling your site:

1. High Demand for Acquisitions

The market is currently dominated by fragmented players, with 97% of U.S. research sites operating independently. This fragmentation creates a prime opportunity for consolidation. In fact, private equity firms and larger SMOs are aggressively seeking to acquire smaller sites to create integrated networks.

2. Favorable Valuation Trends

Larger organizations are willing to pay a premium for sites that bring specialized expertise, strong therapeutic area coverage, and operational efficiency. Assets focusing on high-demand areas like oncology, CNS disorders, and cardiovascular diseases are especially attractive.

3. Significant Operational Advantages

Joining a larger network allows your site to access critical resources, including:

• Centralized recruitment functions: Larger networks use digital marketing campaigns and call center technologies to streamline patient recruitment and improve retention rates.
• Streamlined operations: Advanced systems and standardized templates reduce administrative burdens, improve compliance, and enhance trial execution efficiency.
• Negotiation power: Larger organizations secure better terms with sponsors, benefiting from economies of scale and stronger relationships with biopharma companies.

4. Unlocking Growth Potential

Selling your site can position it for growth that would be difficult to achieve independently. Larger networks often pursue new therapeutic areas, expand geographically, and leverage advanced technologies that smaller sites may not have the resources to adopt.

What Buyers Look for in a Clinical Research Site

To maximize your site’s valuation, it’s important to understand what buyers prioritize:

• Therapeutic specialization: High-budget therapeutic areas like oncology, CNS, and metabolic trials are particularly appealing.
• Operational efficiency: Sites with low staff turnover, streamlined systems, and a strong regulatory track record command higher valuations.
• Diverse pipeline and patient base: Buyers seek sites with access to diverse patient demographics and a strong backlog of high-probability trials.

If your site is strong in these areas, now is the time to capitalize on its value.

What You Gain by Selling

Selling your site to a larger group offers numerous benefits:

1. Financial Rewards: A sale can unlock the full value of the business you’ve built, providing a significant financial payout, equity in the SMO, and opportunities to reinvest in other ventures.
2. Professional Resources: Larger organizations bring technology, operational systems, and expertise that can elevate your site’s performance and reputation.
3. Reduced Administrative Burden: Free yourself and your team from the daily challenges of running an independent site, allowing you to focus on what you do best—delivering high-quality research.
4. Scalability: Tap into resources that enable your site to grow faster and more efficiently than it ever could independently.

The Bigger Picture: Industry Consolidation is Here to Stay

The clinical research industry isn’t just evolving—it’s consolidating. In the past year alone, there has been a significant uptick in mergers and acquisitions as larger players seek to create integrated SMO platforms.

According to reports, the U.S. SMO market is expected to grow at a 5.1% compound annual growth rate through 2030, with transaction volumes for site acquisitions consistently increasing. This trend underscores the urgency for independent site owners to act now, while the market is hot.

Why Partner with Evergreen M&A?

Navigating the sale of your clinical research site is a complex process, and not all advisors are equipped to maximize your outcomes. We have experience selling clinical research sites to private equity buyers and in all cases we have significantly increased offers for owners who had previously tried to sell on their own. We specialize in helping independent site owners like you unlock the full value of their businesses by:

• Conducting thorough valuations: Our team evaluates your site’s strengths, therapeutic focus, and growth potential to ensure you receive top offers.
• Connecting you with the right buyers: We maintain a network of trusted private equity firms and strategic acquirers actively seeking sites like yours.
• Providing expert guidance: From negotiation to closing, we guide you through every step of the process, ensuring a smooth and successful transaction.

Take the First Step Today

The clinical research market is brimming with opportunity, but timing is critical. Don’t wait until the market shifts or operational challenges force your hand. Take control of your site’s future by exploring your options today.

Schedule a call with Evergreen M&A to learn how we can help you achieve your goals. Together, we’ll position your site for success in the next chapter of clinical research. Complete the form below or email Gary, gary@evergreenforfounders.com.