You want to sell your medical device business/supplier? Then it's good to know about the acquisition market in medical device industries. Big data, AI and 3D printing are turning medical devices upside down. These emerging technologies are allowing the healthcare industry to help more people faster and better.
The number of acquisitions in the medical device industry has been growing since 2020. However, there was a dip in 2023.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
For the industrial & manufacturing sector - which includes medical device businesses/suppliers - an indicative EBITDA multiple range of 4.6 to 5.5 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Want to buy a business or sell a business in the healthcare & pharmaceuticals sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in healthcare & pharmaceuticals. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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In numerical terms, the number of medical device businesses/suppliers in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer medical device businesses/suppliers many growth and acquisition opportunities:
Track your own health status through real-time heart rate, temperature and blood sugar readings? This technology is already in use by mouth, but is only expected to increase. In addition to this self-care, sensors offer wearable technologies help improve health care by allowing devices to communicate with medical professionals in the future.
3D printing is very interesting for the medical industry. Because this way, a considerable amount of surgical devices, such as prostheses, joints, crowns and braces, can be produced in a short period of time. This market was valued at $973 million in 2018 and is expected to grow to $3.7 billion by 2026
Big data and AI are enabling the development of more precise, targeted treatments. This will eventually lead to a healthcare system focused on prevention or even prediction of health as opposed to the reactive and life-saving treatments of today.
