Executive Stakeholder Strategy - Why Cross Border Deals are so important
May 15, 2017
Key Issues Impacting Executive Stakeholders:
The MedTech Industry is undergoing continuous change with influences from many dynamic factors including political, markets, regulatory, global economics, and disruptive innovation. Are you prepared for the upcoming impacts in taxes, regulatory, reimbursements, new technology, and emerging market competition? Do the U.S. Healthcare Changes impact your business?
Political uncertainty is not easy to deal with. It can impact the way you invest in your business and also the way others will look at partnering with you and investing in your business. Outside of the US, issues such as Brexit, elections in the Netherlands and France, the US relationship with China, NAFTA, all matter and affect your company one way or another. A change in one country creates an opportunity in another! According to Baker-McKenzie :
Cross-border M&A made up 49% of all deal value and 35% of all deal volume in Q1 2017
Intra-regional dealmaking value saw a 46% increase quarter on quarter
North America was the hot target. The region accounted for more than half of all cross-regional dealmaking, with 206 deals worth US$120.8bn
Japan dominates outbound M&A activity from Asia-Pacific
This is today but if we look at the trends , these numbers will shift especially when it comes to Med Devices and LifeSciences. For many countries in the Asia Pacific Regions, 2020 has been set as the target where some of the government programs will come to fruition and innovations will make an impact on the global marketplace. China: Is heavily investing in Bioscience/Biomedecine, a government lead initiative. The purchasing power in China has grown at a fast pace and will continue to do so. Investment in innovation and digital health will drive some of that growth. India: Has been working hard in developing unique medical devices and has greatly improved its drug processes including the way clinical trials are conducted. Again here, the government is funding some of these initiatives and will offer lower cost products for the region. South Korea: Known for its electronics , South Korea has been expanding into the world of digital health and medical devices. Communication devices are being geared to work with devices of all kind to create a better care environment. As Asia continues to invest in its future, we also anticipate the U.S. and Europe to continue to be attractive geographies for medical and biotech investment as innovation for unmet clinical needs is a global opportunity.
If you’d like to expand your business thru acquiring novel technology and / or companies, reach out to us. Our international team of partners are ready and willing to assist your inorganic growth efforts.
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