Deja-vu? MedTech M&A Moving Into 2022
It is hard to believe that December is here and the new year is right around the corner. At this time last year there was much hope around the state of the pandemic. Vaccines were on the way and 2021 was promised to be the year the world returned to normal (well, new normal). But looking back on where were a year ago, just makes where we are now feel a bit like Groundhog Day. Another new variant is coming to life and the uncertainty that has become commonplace in our lives is once again at center stage. What does this uncertainty mean for your business, the Healthcare industry, and mergers and acquisitions in general?
When it comes to doing business, flexibility continues to be the theme. In 2020, the world was introduced to the Zoom environment, and while that has allowed business to continue to move forward, there is still something to be said about face to face interactions, especially when dealing with mergers and acquisitions. However, given the responses of various governments as well as people’s tendency to avoid hot spots and situations where new variants are popping up, it is safe to say that the hybrid/Zoom environment is here for the time being.
The Healthcare industry as a whole obviously saw changes during the initial onset of the pandemic. Elective surgeries ground to a complete halt, and virtually all focus shifted to containing and serving the virus. Now, once again, as Omicron develops, the potential for elective surgeries hangs in the balance, but it means that others in the HealthCare Industry will see new opportunities arise. For example the point-of-care diagnostics segment is seeing a growing number of companies entering the market place.
In terms of mergers and acquisitions in the industry, following the initial lull at the start of the pandemic, deals have surged and continued to do so during 2021. The number of deals is undoubtedly going to be a record breaker. Moving into 2022 there is some uncertainty surrounding whether or not this trajectory will be able continue. Government spending in 2021 meant lots of money was pushed into the economy and much of that unsurprisingly found its way into the Healthcare industry. And as inflation looms, investors with tinder may be looking to spend what they have. There is a possibility that given these facts, mergers and acquisitions in the Healthcare industry could actually continue to thrive.
Though we currently feel a bit of deja-vu heading into the new year, if we have learned anything since the pandemic began almost two years ago, we should expect the unexpected.