Medical Device Outsourcing Market Update: M&A Volume at Heightened Levels

Medical Device Outsourcing Regains Footing, Private Equity Active

Capstone Partners released its December 2021 Medical Device Outsourcing Market 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.

Capstone Partners has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms through each stage of the company’s lifecycle, ranging from growth to an ultimate exit transaction. To learn more about Capstone’s wide range of advisory services and Medical Device Outsourcing industry expertise, please contact Capstone Managing Director Eric Williams.