Acquiring Executive Talent

Originally Published MX May/June 2006

BUSINESS PLANNING & TECHNOLOGY DEVELOPMENT

Executives on both sides of a medtech acquisition stand to prosper, but significant attention must be given to the fine print.

Ted Ginsburg and Aubrey Bout

The pace of corporate transactions in the medical device space, including mergers, acquisitions, spin-offs, and asset sales, continues to accelerate. During the first three quarters of 2005, completed merger and acquisition transactions in the medtech industry increased by almost 13% over the same period in 2004.¹

There are many reasons these types of corporate activities occur. Potential acquirers are often looking to fill their pipelines or increase their product offerings. Meanwhile, selling companies may want to focus their energies on fewer lines of business. In addition, corporate transactions are often driven by investors who want to recoup their investment or invest in a business with perceived potential.