In medtech, M&A isn’t optional. It’s a must. Investors reward revenue growth more than productivity gains, making acquisitions an effective way to increase valuation. The real competitive edge, then, lies not in doing M&A, but in doing it well. That doesn’t simply mean doing bigger deals. In fact, in medtech, large deals don’t guarantee success. Our decade-plus analysis of medtech transactions reveals a weak link between deal size and growth. And contrary to most industries, big deals are rarely a dependable source of stability for medtech companies. Why? Large assets are scarce, and in medtech, high-stakes bets carry outsized risk. A poorly timed or mismanaged large deal can create debt overhang and stall both organic and inorganic growth for years.
Read the full article: Medtech M&A Strategy: More Than Big Bets //
Source: https://www.bain.com/insights/medtech-m-and-a-strategy-big-bets/
