Medical Technology M&A Pulse – Q3 2023

Q3 2023: Rate-Hiking Status Check

• Inflation, while still an economic focal point, is not the sentiment driver it was earlier in the year and in 2022. Fewer and fewer headlines refer to record-high inflation; indicating the Fed may have achieved its objective in calming price increases. Remarkably, the frequently assumed consequence of rate hikes, a softening job market, seems to have been avoided. Q3 2023 marked another period of a resilient U.S. consumer, robust job market, and steady GDP growth. The S&P 500 remains up nearly 12% on the year, though down slightly during the quarter. Optimism in the market abounds as the Fed appears poised to pause further rate increases.
• Q3 2023 Medical M&A made slight gains compared to Q3 2022 (134 vs. 132 transactions) but was down from Q2 2023 by 18 announced transactions. Services was the leading segment, comprising 23% of transactions. This was closely followed by Consumables and Disposable and Therapeutic Devices, each 19% of volume.
• The third quarter represented a swift decline for Medical Device public companies after a promising Q2. The Orthopedic index remained the top performer, finishing the quarter up 2.5% YTD, but well below the S&P 500 Growth Index which was up 18.4%. The Cardiovascular index was the laggard of the group, with YTD performance down 6.9%.

Read Medical Technology M&A Pulse Q3 2023 Full Report