Lloyd Price
- May 18

HealthTech Acquirers Key Priorities Mid 2024

Executive Summary:

Strategic HealthTech acquirers are companies that are looking to buy other companies in the healthcare technology (HealthTech) industry. These acquirers are looking to expand their product offerings, enter new markets, gain access to new technologies, increase their customer base and achieve cost savings.

Expanding their product offerings: HealthTech companies are constantly developing new and innovative products and services. Strategic acquirers can expand their product offerings by acquiring companies with complementary products or services.

Entering new markets: HealthTech is a global industry, and strategic acquirers can enter new markets by acquiring companies with a strong presence in those markets.

Gaining access to new technologies: HealthTech companies are at the forefront of innovation, and strategic acquirers can gain access to new technologies by acquiring these companies.

Increasing their customer base: HealthTech companies often have large and loyal customer bases, and strategic acquirers can increase their customer base by acquiring these companies.

Achieving cost savings: HealthTech companies can achieve cost savings by consolidating operations or eliminating redundancies. Strategic acquirers can benefit from these cost savings.

The HealthTech Mergers and Acquisitions (M&A) market is expected to remain very active in 2024, driven by several key trends:

Value-based care: Acquirers are looking for companies that can help them transition to value-based care models, which reward positive patient outcomes over treatment volume. This could include companies specialising in chronic disease management, remote patient monitoring (RPM), or patient engagement tools.

Remote patient monitoring (RPM): RPM solutions allow healthcare providers to monitor patients remotely, which can improve care quality and reduce costs. Companies with strong RPM platforms are likely to be attractive targets.

Mental health: The demand for mental health services is growing, and acquirers are looking for companies that can provide innovative solutions. This could include companies developing teletherapy platforms, mental health chatbots, or other digital mental health tools.

Artificial intelligence (AI): AI has the potential to revolutionize healthcare, and acquirers are looking for companies that are developing AI-powered solutions. This could include companies developing AI-powered diagnostics, chatbots for patient education, or virtual assistants for doctors.

In summary, HealthTech acquirers in mid-2024 are prioritising companies that can help them achieve the following:

Transition to value-based care

Implement strong RPM solutions

Address the growing demand for mental health services

Leverage AI for improved healthcare delivery

Mergers, Acquisitions, Growth and Strategy for Healthcare Technology companies

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What are strategic HealthTech acquirers looking for in today's market?:

Strategic HealthTech acquirers are looking for a variety of things in today's market, top of the list are:

Technology with the potential to disrupt the status quo. Acquirers are looking for technologies that have the potential to fundamentally change the way healthcare is delivered or received. This could include technologies that improve patient outcomes, reduce costs, or make healthcare more convenient.

Companies with strong intellectual property (IP). IP is essential for protecting a company's innovations and ensuring its long-term success. Acquirers are looking for companies with strong IP portfolios that they can use to expand their own offerings or defend themselves against competition.

A team of talented and experienced professionals. The success of any acquisition depends on the people involved. Acquirers are looking for companies with teams of talented and experienced professionals who can help them integrate the acquired company and achieve their strategic goals.

A strong market opportunity. The healthcare industry is large and growing, and there are many opportunities for innovation. Acquirers are looking for companies that are well-positioned to capitalize on these opportunities.

A good fit with the acquirer's culture and values. An acquisition is a big change for both companies involved. It is important that the acquirer and the acquired company have a good fit in terms of culture and values. This will help to ensure a smooth integration and a successful outcome for both parties.

In addition to these factors, strategic HealthTech acquirers are also looking for companies that have a strong growth potential, a clear competitive advantage, and a good reputation.

Key trends driving strategic HealthTech acquisitions:

Some of the specific trends that are driving strategic HealthTech acquisitions in today's market:

The increasing demand for digital health solutions: The aging population and the growing prevalence of chronic diseases are driving the demand for digital health solutions. This is creating opportunities for healthtech companies that offer products and services that can improve the quality of care and reduce costs.

The rise of artificial intelligence and machine learning: Artificial intelligence and machine learning are rapidly transforming the healthcare industry. These technologies are being used to develop new diagnostic tools, improve the efficiency of clinical workflows, and personalize treatment plans.

The growing focus on preventive care: The healthcare industry is shifting its focus from reactive care to preventive care. This is creating opportunities for healthtech companies that offer products and services that can help people stay healthy.

The increasing regulatory scrutiny: The healthcare industry is heavily regulated. This can make it difficult for healthtech companies to bring new products and services to market. However, it also creates opportunities for companies that can help healthcare organizations comply with regulations.

Overall, the strategic healthtech acquisition market is very active.

There are a number of factors driving this activity, including the increasing demand for digital health solutions, the rise of artificial intelligence and machine learning, the growing focus on preventive care, and the increasing regulatory scrutiny.

Predictions for Digital Health M&A in H2 2024

Here are some specific predictions for digital health M&A in the next 6 months:

Increased consolidation among digital health companies: As the digital health sector matures, we expect to see increased consolidation among digital health companies. This is because larger companies will have the resources to invest in new technologies and expand into new markets.

More strategic acquisitions by healthcare providers: Healthcare providers are increasingly interested in acquiring digital health companies in order to improve efficiency and reduce costs. We expect to see more strategic acquisitions by healthcare providers in the next 12 months.

More acquisitions by technology companies: Technology companies are also interested in acquiring digital health companies in order to expand their offerings and gain access to new markets. We expect to see more acquisitions by technology companies in the next 12 months.

More acquisitions by private equity firms: Private equity firms are also interested in acquiring digital health companies in order to generate attractive returns for their investors. We expect to see more acquisitions by private equity firms in the next 12 months.

Overall, the digital health M&A market is expected to remain active in the next 12 months, with strategic buyers being the most active buyers. Valuations are likely to remain under pressure, but there are a number of factors that are expected to support M&A activity.

Final Thoughts:

Experts predict a strong likelihood of an increase in healthtech mergers and acquisitions (M&A) activity in the next 12 months. Here's why:

Market confidence is high: There's a general positive outlook on healthtech M&A due to factors like rising demand for healthcare services, wider adoption of digital health tools, and a focus on preventative care

Strategic acquisitions: Decreasing valuations in the healthcare sector might make companies more attractive for acquisition, leading to strategic purchases for expansion and staying competitive

AI integration: As AI becomes more regulated and accepted, companies with strong AI healthcare solutions could be prime targets for acquisition

However, it's important to note that the total deal value might not necessarily reflect the increase in deal numbers. Some acquisitions might be for smaller amounts, but the overall activity is expected to be high.