Dec 28, 2021

Medical Device Outsourcing – December 2021

Medical Device Outsourcing M&A Volume at Heightened Levels, Private Equity Active

Capstone Partners released its December 2021 Medical Device Outsourcing Industry Update, reporting that the  industry has regained its footing in 2021, despite pandemic-induced disruption and volatility in the volume of surgical procedures.

Merger and acquisition (M&A) volume has continued at a rapid pace in Q4, with 75 deals announced or completed year-to-date, marking a 32% increase year-over-year (YOY). A large portion of the initial transaction inventory in 2021 has been fueled by business owners seeking to close deals before year-end spurred by anticipated tax increases. In addition, the favorable valuation environment and cheap access to debt have created a healthy backdrop for continued near-term consolidation.

Also included in this report:

  • The key headwinds original equipment manufacturers (OEMs) and outsourced providers are combating.
  • Historic M&A transaction data and insights to the current valuation environment.
  • How private equity firms have increased their exposure to the sector.

 

Related Transactions

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