5 common reasons for for failure after an orthopedic acquisition.
Wow! We saw 21 orthopedic acquisitions in 2022 (list below).
My prediction: M&A will slow down in 2023. The new 2023 acquisitions will be different. We will see cash rich companies exploiting companies that are in financial trouble.
ACQUIRER/ACQUIREE in 2022
Orthofix/SeaSpine
Bioventus/Cartiheal
ConMed/In2Bones
Acumed/Exomed
Avanos Medical/OrthogenRX
Bone Therapeutics/Medsenic
Conmed/Biorez
CurveBeam AI/StraxCorp
DePuy/CUPTIMIZE
DePuy/CrossRoads Extremity Systems
Enovis/Insight Medical Systems
Enovis/360 Med Care
Incite Innovation/NeuroStructures
Isto Biologics/TheraCell
Medartis/Nextremity Solutions
Onkos Surgical/Stryker Juvenile Tumor System
ORHub/PUR Biologics
OrthoPediatrics/Pega Medical
OrthoPediatrics/MD Orthopaedics
Paragon 28/Disior
Smith and Nephew/Engage Surgical
Spineway/Spine Innovations
So, what could possible go wrong with the 2022 acquisitions. Here are 5 typical problems that lead to failure:
1/Overpayment: If the acquiring company pays too much for the target company, it may struggle to recoup its investment and realize a positive return.
2/Integration problems: If the two companies have different cultures or ways of doing things, it can be difficult to integrate them effectively. This can lead to conflicts, low morale, and other problems.
3/Loss of key personnel: The acquiring company may lose key employees from the target company as a result of the acquisition. This can disrupt operations and undermine the value of the acquisition.
4/Synergies not realized: The acquiring company may have hoped to achieve cost savings or revenue improvements through the acquisition, but these synergies may not materialize.
5/Changes in market conditions: The market conditions may change after the acquisition, making it more difficult for the acquiring company to realize the expected benefits.
Which of the 5 failures have you seen ?
Send me a confidential email to tiger@tigerbuford.com
