Q1 2024 – Rate Cut Uncertainty
- Persistent inflation in Q1 2024 delayed expected rate cuts as the Federal Reserve back tracked expectations from four to three cuts this year. This higher-for-longer interest rate environment continues to impact M&A activity as financing remains costly and challenging. As 2024 marks an election year and global conflict continues, there remains heighted volatility and uncertainty throughout the economy. Even so, strong economic fundamentals remain and continue to drive deal making and investor returns for quality assets.
- Q1 2024 Medical M&A experienced a strong quarter by volume with 135 transactions announced for the quarter. This early volume is in line with 2020, 2022, and 2023 and sets 2024 up for a solid year. Services was the leading segment, comprising 27% of transactions. This was closely followed by Equipment, Therapeutic Device, and Consumables & Disposable, each making up 15% of volume.
- The first quarter represented a strong start to the year for Medical Device public companies. The Orthopedic index remained the top performer, up 15.5% for the year, which was in line with the S&P 500 Growth Index which was up 14.4%. The Diversified Diagnostic index was the only one of the group with negative quarterly performance, finishing down 1.3%.
Read Medical Technology M&A Pulse Q1 2024 Full Report
Medical Technology M&A Pulse – Q2 2024
Ongoing volatility in the Medical Technology M&A sector is driving heightened diligence and investor scrutiny to ensure acquisition targets are high-quality assets capable of withstanding current market turbulence.
Medical Technology M&A Pulse – Q4 2023
Concerns about a recession dominated economic discussions in early 2023, fueled by the Federal Reserve’s aggressive response to historically high inflation.
Medical Technology M&A Pulse – Q3 2023
Inflation, while still an economic focal point, is not the sentiment driver it was earlier in the year and in 2022.
Medical Technology M&A Pulse – Q2 2023
One year into an unprecedented cycle of interest rate increases, the task of an economic soft landing, once deemed nearly impossible, appears more and more likely.
Medical Technology M&A Pulse – Q1 2023
Q1 2023 performance was volatile, even in comparison to a challenging 2022. Companies continue to try and make sense of conflicting macro environment signals; particularly a strong U.S. consumer, paired against an ambitious and somewhat unpredictable Federal Reserve.