M & A is a high-frequency word in the medical device industry in recent years. So far this year, the entire medical device industry has announced new deals at an alarming rate. According to Ernst & Young data, the medical device industry generated 33 M & A transactions in the first half of this year alone, which has exceeded the record for the whole of 2020. It is worth noting that in the global wave of medical device mergers and acquisitions, China's enterprises are very active.

In the past, due to insufficient volume and limited management capabilities, domestic medical device companies were not active in overseas acquisitions. In recent years, the competition in the medical device industry is fierce, and the centralized procurement policy makes the mature business of enterprises face growth pressure. In addition, the product iteration speed in the field of medical devices is accelerated, and various factors have brought huge survival pressure to medical device enterprises. Mergers and acquisitions can quickly break the ceiling of enterprises, seize the high potential market segments, and become the fast lane for the development of medical device enterprises.

M & A is to expand but also to survive

In the course of the development of medical device enterprises, mergers and acquisitions are one of the basic paths. In terms of product characteristics, the medical device industry has fragmented and discrete manufacturing attributes, not only the differences between the various segments, but also the speed of product technology change faster, the impact of new technology on the old technology is often disruptive. From the market point of view, the ceiling of medical device segmentation is obvious. If it can not further expand its market share, the fierce external competition will quickly reduce the market share.