MedWorld Advisors

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Exit Strategy – When to Buy, Sell, Hold, Etc.

PHOTO ©NESPIK | ADOBE STOCK

Medtech mergers & acquisition (M&A) activity has been high throughout 2021. Announcements of all sizes from a range of buyers are made weekly.

With the steady activity happening in the sector, many are wondering — is now is a good time to sell a medtech company? Every business situation is unique, and MedWorld Advisors CEO Florence Joffroy-Black and Managing Director Dave Sheppard discussed some possible scenarios in a recent article published in Today’s Medical Developments Magazine.

1: Early-stage companies

There haven’t been many better times for early-stage companies to explore strategic options. Many industry strategics and smaller companies that have seen their products in high demand are flush with cash due to the pandemic and are looking to invest in their portfolio. Others are seeking strategic innovation to differentiate themselves going forward. Either way, these companies are looking for you.

2: Middle market medtech owner who wants to retain control of the company

Private equity (PE) companies have so much dry powder (funds available to spend) that they are getting more creative in finding ways to invest. They’re more open than ever to deals where they invest in the current management (as a minority or majority owner) without necessarily taking control of the company. An owner can get an investment and still run the company (within certain mutually agreed parameters), and the owner can retire some initial risk and move some of the equity into liquid funds.

To read the full article about scenarios in which an exit might be an attractive option and how to go about the process, click below to go to Today’s Medical Developments Magazine.