Welcome
Welcome to the first issue of our formatted newsletter! Until now I've been posting stand alone articles and I'll continue to do that now and then but it was always my intention to provide a weekly update that included quick bites of useful, timely information that you can act on immediately or tuck away for later use. I expect that over time the specific sections will change, with your feedback, so don't be shy about letting me know what would be of most interest to you, either as a weekly feature or a standalone article, template, or guide.
Spotlight Deal of the Week
Medtronic acquired Fortimedix, a developer of flexible endoscopic instruments designed for minimally invasive procedures. The deal, likely under $25 million given the company’s stage, provided Medtronic with advanced tools to strengthen its robotic surgery ecosystem. Fortimedix’s proprietary articulation technology enabled access to hard-to-reach anatomical areas, aligning with the growing demand for outpatient surgical solutions.
: Startups focusing on procedural efficiency or device miniaturization can attract acquirers seeking to enhance surgical platforms.
Strategy Corner
Preparing for Due Diligence: Key Steps for a Smooth M&A Process
Ensuring your company is due diligence-ready can significantly enhance the attractiveness of your startup to potential acquirers. Here are some actionable steps:
- Organize Financial Records: Maintain up-to-date and accurate financial statements.
- Protect Intellectual Property (IP): Ensure all IP is properly documented, patented, and updated.
- Regulatory Compliance: Keep all regulatory filings current and accessible, along with correspondence notes.
- R&D Records: Confirm QMS/QA processes and documents, DHF (Design History Files) are complete
- Customer and Supplier Contracts: Review and organize all contracts to ensure they are assignable upon acquisition.
Tip: Regular internal audits can help identify and rectify potential issues before they become obstacles in a transaction.
Market Pulse
Medtech M&A Activity Shows Renewed Strength
The medtech sector is experiencing a resurgence in mergers and acquisitions. In 2024, 195 deals were announced through the third quarter, surpassing the 128 transactions in all of 2023. Deal value reached approximately $47 billion, indicating robust activity in the sector.
What this means for exits: The increasing M&A activity suggests a favorable environment for medtech startups considering an early exit, with larger companies actively seeking innovative technologies to enhance their portfolios.
Founder Focus
Marten Devlieger
Since this is my first formal issue of this newsletter, it's only fitting that I feature the founder that started my medtech M&A journey, Marten Devlieger. I owe him a debt of gratitude and will keep his memory alive until the end of my days.
He was fearless, plain spoken, and passionate about getting his device to CF patients around the world.
He overcame seemingly insurmountable odds - running (more than once) in the Boston Marathon, despite severe obstacles due to his CF; developing a successful medical device despite not having completed high school; successfully lobbying his government to cover the cost of Trikafta; becoming an in-demand spokesperson, not just by the medtech multinational that acquired his device but by well known snowmobile and mountain bike companies in North America.
He had boundless faith, right up until the end, which came far too soon, on December 24, 2024. You don't have to take my word for how special Marten was. I let the medtech community know about his passing through a post on Linkedin and many who were involved with the development of his device shared memories of this remarkable man.
If you're interested in how we achieved his exit, you can check out the case study below.
Quick Wins & Resources
Due Diligence Spreadsheet Template: Created in Google Sheets for easy access, this is an easy to use due diligence checklist you can use to help get your ducks in a row at the onset of your early exit via M&A initiative. Do note that it's generic and covers the basics, so it's a starting point from which you can refine to reflect the components of your device, corporate structure, marketing assets, and buyer concerns. Click here to access it and once it opens, click the blue 'Use Template' button to make a copy of your own to use.
Google Alerts: Keeping on top of regulatory, M&A, and key hire announcements in your industry niche is essential to ensuring your competitive and able to capitalize on opportunities as soon as they arise. The easiest way to do this is to employ Google Alerts and set alerts for specific keywords - i.e. your device type, competitors, prospective acquirers, KOLs. You can choose to have the alerts sent to youvia email as they happen, daily, or weekly. I suggest that you start a folder in your email client to save results of interest so you can refer back to them as needed).
Medtechmanda.com website: When I launched the site in November, my goal was to fill a much needed service gap: Expert strategy and support for medtech startups (particularly pre-commercial) and SMBs who are contemplating an early exit with a deal valuation under $25M. Expert strategy and assistance for deals of this size and nature is virtually non-existent, leaving many medical device startups to simply fold when their runway ends, or worse, carry on without progress as a zombie company for years on end.
I put together a couple of discrete service offerings that I thought might help, with positive reception by my intended clients. That same group has also provided great feedback on other services and service structures that would benefit them so expect to see some changes implemented in that regard on the site in the very near future.
As always, if you have any questions or would just like to chat, please feel welcome to reach out.
AEC
Amanda Cooper, Founder
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