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 ?

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