A small dose of greed can be a good thing for orthopedic company leaders... but excessive greed can be problematic.
For instance, greed can get in the way during M&A negotiations.
Greed can distort what a company is actually worth. Often, CEOs, boards and shareholders have an over-inflated viewpoint regarding the value of their company.
As part of the Arthrex/Corin story, we learned that Arthrex offered Corin $1B years earlier, Corin walked out, then agreed to Arthrex's $330M offer this year. Read - First look at the Arthrex acquisition of Corin
Check your greed with negotiating early acquisition offers.
“Your nearest exit may be behind you”
This reminds me of the Globus / NuVasive negotiations.
Globus Medical acquired NuVasive in September 2023 for about $3.1B in an all-stock deal.
Here's how the deal unfolded:
September 2021: CEOs start talking merger.
October 2021: Globus offers $68.46 per NuVasive share (non-binding, all-stock).
Talks pause after media leaks cause stock swings—no deep due diligence yet.
October 2022: Globus restarts talks.
November 2022: Globus lowers offer to $50.69, then adjusts further down due to market changes.
February 2023: NuVasive accepts $57...
