ARTICLE SUMMARY:
Bolt-on acquisitions of “strategic growth” assets can be essential to drive innovation and create value for medtech companies. But buyers need to be careful not to crush the entrepreneurial spirit that makes the target attractive and ensure their integration strategy prioritizes protecting the “crown jewels” of the target. By Ranu Carroll, John Babitt, John Heinbigner, Mark Crumrine, and Tarun Gupta, EY-Parthenon.
The path to the highest returns in medical technology typically follows a simple formula: invest in R&D to drive innovation and create value through mergers and acquisitions. While tariffs remain the “wildcard” of 2025, the so-called flywheel effect of organic reinvestment and inorganic investment drives revenue growth, which in turn drives equity returns (see Figure 1).
