Medical Technology M&A Pulse – Q4 2024

MEDICAL TECHNOLOGY M&A MARKET DYNAMICS

MedTech M&A deal volume in 2024 remained consistent with 2023 levels despite headwinds from rising input costs and regulatory shifts over the past year. The second half of 2024 saw an increase in activity compared to the first six months of the year, and market sentiment suggests M&A may continue to improve in 2025 due to a more favorable regulatory environment, increasing technology innovation in devices and more normalized end market growth rates.  Buyer interest remains strong across strategic and financial groups, in part driven by lower financing costs and continued high levels of uninvested capital.

• The Medical Technology sector underwent notable changes in 2024, with major industry players continuing their M&A activity while smaller deal making slowed. Acquisitions have become increasingly specialized, with companies focusing on their core MedTech sector strengths and leveraging AI and technology-driven add-ons to gain a competitive edge. As the market remains turbulent and regulatory changes begin to take effect, the industry’s ability to build momentum in 2025 will depend on how effectively it navigates this evolving landscape.
• Medical Technology M&A had a formidable year in 2024, with 563 announced transactions, keeping pace with the 569 recorded in 2023 although the 135 deals in Q4 2024 fell below the historical quarterly average of 156. The Services segment led the way in transaction volume, making up 24% of all deals, while Equipment, Therapeutic Devices, and Consumables & Disposables segments accounted for 19%, 18%, and 15% of the activity.
• Medical Device public equity performance in 2024 delivered mixed results. The Orthopedic Index led the sector with a 14% annual gain, while the Diversified Medical Device Index also posted growth at 8%. However, both fell short of the S&P 500 Growth Index’s impressive 37% surge. On the downside, the Cardiovascular Index struggled, finishing the quarter as the worst performer with a 3% decline.