In 2024, Medtech M&A hit a record $𝟰𝟳𝟰.𝟴𝗕, but how do you get bought, not sold? Scott Nelson, CEO of FastWave Medical, spoke with 5 Start-Up CEOs who have successfully navigated the acquisition process. In this blog, we explore exactly what works and what doesn’t.
The smartest medtech M&A move? Don’t sell – get bought.
Joe DeVivo, CEO of Butterfly Network, Inc:
- Any successful M&A transaction is one where you’re purchased, not sold
- Trying too hard to get acquired can raise red flags
- Build real value. Let buyers come to you
- Befriend potential acquirers early – especially competitors
- Don’t assume they know your impact
- Build trust
Market growth gets you in the medtech M&A game. Milestones move you forward.
James Reinstein, CEO Conformal Medical:
- It’s not enough to be in a hot sector
- ‘What can significantly derisk this as an investment opportunity?’
- Focus on key milestones: regulatory approvals, early traction, pivotal clinical data
- Align fundraising and M&A conversations with inflexion points
- Use strategic data disclosure as a signalling tool to attract acquirers and close funding
Build wisely, but don’t rely on an acquisition to save you.
Cary Vance, former CEO PhotoniCare, Inc.:
- Run your business as if you’re going to have to make a go of it alone
- Founders must prepare for tough questions: market opportunity, risk profile, traction, why you, not someone else?
- ‘Everything must stand up’ under due diligence
- Even a great company may not get acquired
- Keep multiple strategics engaged
Plan for M&A early, and often.
Jennifer Fried, CEO of Flow Medical:
- Start conversations before you’re ready to sell – just to listen
- Even if M&A isn’t the plan, stay prepared
- Practice annual check-ins
- Build a momentum narrative
Understand how strategics approach medtech M&A.
Nitin Salunke, CEO of Supira Medical:
- ‘Don’t go on a fishing expedition’
- Know your value – and how it fits their priorities
- ‘All strategies have their targets to watch You need to make incremental progress on that list’
- Keep regular updates going – before you’re ready to sell
- Synchronization matters
