What Really Happened In 2022's Medtech M&A Market?

Thank goodness for svb and all the good data they produce¹! We believe that M&A activities in our sector are poised for a great year in 2023 and I am happy to report that svb agrees with our view of the market.

As the acquisitions manager of your company, if you have been waiting,  thinking that now was not the right time to acquire, email us. Our information, coupled with the svb report will make you look at an acquisition in a positive way.

Mergers and acquisitions are the sweet spot for Medi-Vantage on the buy side, and we love figuring out whether a technology will actually work in the marketplace. So many new medical devices don’t!

We find answers for our clients who seek to acquire a new technology. We answer questions about workflow, turf battles, reimbursement, competitive devices and all the other questions that make the difference between a device that works well (or not) or can affect its valuation. Now a new question has emerged that isn't going to go away anytime soon: staffing.

Devices were the only sector in 2022 to almost match the record investments of 2021. In digital and healthtech, investors reduced their risk by selecting companies that were nearer to profitability and/or could improve health outcomes, access or affordability. The Diagnostics/Tools sector had exceedingly divergent results with high early stage investments in diagnostic tests and analytics, but a large drop in R&D tools.

Takeaways

  • Venture capital is fundraising in the face of a possible recession with $50B+ to invest in the healthcare industry.

  • IPOS are down across all healthcare sectors based on poor execution of the 20/21 IPO classes and overall public market performance.

  • Poor performance in the public markets compelled many acquirers to reconsider their cash spend and reprioritize acquisitions to the bottom of the list.

2023 is a new year and device was the only sector in 2022 to nearly match the record investment in 2021, dropping less than 10% overall, despite a sharp decline in Q4 ‘22. Call us.


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OUR LAST THREE PROJECTS WERE:

  • M&A due diligence analysis: strategic fit for a new disruptive product

  • Go to market strategy for a medtech start up

  • Medtech price sensitivity analysis - hospital administrators and CFOs