The 2016 global market has started brightly, with a 31% increase in the number of deals on the 103 deals we saw in the first five months of 2015. Of these 37% have been cross-border transactions, roughly the same as during the same period last year. 2015 saw 235 deals with a total value of €42.3bn, a 22% fall on the year before.
Market dynamics remain extremely strong as leading players turn to consolidation to access the technology and global markets they need in order to maintain their competitive edge. Driven by the ageing demographic, there remains a huge drive to develop devices that can both help treat age-related conditions and attack chronic diseases.
So far there have been 79 deals in 2016 with a total value of €7.3bn. In terms of both the number and value of deals, the US remains the most active market for M&A. There has been a 76% increase in the number of deals so far in 2016 compared with the same period a year earlier.
Trade buyers were the most active group in 2015, with financial investors completing three deals, the same as the previous year. Despite the fact the market is awash with cash, there is a scarcity of high quality medical equipment and supplies assets available in the consolidated market.
The German market is the third largest in the world behind the US and Japan and Ireland is currently the fastest growing economy in the EU with the medical device industry being identified as a key driver of economic growth. In comparison the Spanish market has been growing at a slow pace recently, but it is expected to accelerate in the coming years.
Our international Healthcare team is a leading M&A adviser to the healthcare sector. Our team has completed numerous mandates which have provided unrivalled relationships with global healthcare companies and financial sponsors active in the sector. The team comprises experienced professionals in Europe, Asia and North America.