Communicating a robust economic strategy is paramount to device market success and often requires simplification into a budgetary impact model. Value analysis committees (VAC) hear presentations from medtech companies routinely and yours must stand out clearly.

We all agree that 2023 was an inauspicious year for global medtech M&A. How are other, non Life Sciences (NLS) industries doing in Deal Terms? SRS Aquiom publishes great M&A research in the Life Sciences space for pharma, biotech and medtech. Their value proposition is that SRS Acquiom delivers the smartest way to run a deal™ with solutions that reduce the administrative burden throughout the entire deal lifecycle. Let’s compare global trends of NLS industries to Medtech.

2023 was a discouraging year for worldwide medtech M&A. According to McKinsey, in the life sciences sector, there were 745 transactions in 2023. Ninety-one percent had a value below $1 billion, and 54% fell below $100 million. Biotech and pharma deals were in the majority of deal volume—61% and 23%, respectively.

Expect the pace of medtech innovation in 2024 to meet or exceed the outstanding bump we saw in 2023. And expect price strategies for these new technologies to keep medtech marketing teams on their toes.

Organizational culture is critical for successful innovative growth and the acquisition of new and adjacent technologies. Medtech companies with robust innovation cultures generate even more value by embracing the latest technologies, such as generative AI.

For medtech, resilience over the long term includes expansion through M&A and the bravery to make bold moves to pursue unknown alliances that have a high probability to result in  profitable growth.

According to McKinsey, for a CEO to beat the odds, there are 18 practices divided into six key areas of the job.

You’ve developed a great device. Now you need to get it to market, attract an acquirer, and get through negotiations.

You aren’t done yet.

By their own estimates, SRS Acquiom has partnered with buyers and sellers involved with approximately 10% of all US M&A transactions since 2008. Using data collected since then, they estimate they have been involved with 113 Medical Device deals (80 with earnouts and 33 without earnouts) and 107 Diagnostics/Research deals (52 with earnouts and 55 without).

In a hospital administrator survey (n=50) 3Q23 year over year growth was 3% for outpatient and the emergency department, 1.6% for inpatient and 2.1% for ASCs.

The ninth year of the Women in the Workplace report, (n=27,000) conducted in partnership by McKinsey and LeanIn.Org, is the largest study of executive women across corporate America and Canada.