According to our Orthopedic M&A Tracker, deal volume increased in 2023 for the first time since 2020. We tracked 29 orthopedic M&A announcements in 2023, up nearly 32% compared to the prior year. Despite the jump in activity, orthopedic deals remain slightly below the historical average of 31.
Orthopedic deals typically command a premium compared to general medtech. Orthopedic M&A accounts for 25% of overall medtech deal volume while representing just 14% of the total addressable device market. The median medtech deal multiple is 3.8 times the last twelve months of revenue, but climbs to 5.5 in orthopedics.
So what assets are in demand within orthopedics? Our chart of the month shows the prevalence of each product segment for orthopedic M&A in 2023. Those values are compared to each segment’s average from 2016 through 2022.
Orthobiologics accounted for 22% of deal volume in 2023, up from its average of 14%. Digital assets were included in 19% of deals compared to an average of 15%. The spine segment narrowly missed its historical average of 28%, but rebounded from an atypical 2022 in which it accounted for just 12% of deals.
Quality assets are relatively rare in medtech M&A, and that holds in orthopedics as well. We expect a similar deal volume in 2024, with the focus remaining on spine-related opportunities.
According to our Orthopedic M&A Tracker, deal volume increased in 2023 for the first time since 2020. We tracked 29 orthopedic M&A announcements in 2023, up nearly 32% compared to the prior year. Despite the jump in activity, orthopedic deals remain slightly below the historical average of 31.
Orthopedic deals...
According to our Orthopedic M&A Tracker, deal volume increased in 2023 for the first time since 2020. We tracked 29 orthopedic M&A announcements in 2023, up nearly 32% compared to the prior year. Despite the jump in activity, orthopedic deals remain slightly below the historical average of 31.
Orthopedic deals typically command a premium compared to general medtech. Orthopedic M&A accounts for 25% of overall medtech deal volume while representing just 14% of the total addressable device market. The median medtech deal multiple is 3.8 times the last twelve months of revenue, but climbs to 5.5 in orthopedics.
So what assets are in demand within orthopedics? Our chart of the month shows the prevalence of each product segment for orthopedic M&A in 2023. Those values are compared to each segment’s average from 2016 through 2022.
Orthobiologics accounted for 22% of deal volume in 2023, up from its average of 14%. Digital assets were included in 19% of deals compared to an average of 15%. The spine segment narrowly missed its historical average of 28%, but rebounded from an atypical 2022 in which it accounted for just 12% of deals.
Quality assets are relatively rare in medtech M&A, and that holds in orthopedics as well. We expect a similar deal volume in 2024, with the focus remaining on spine-related opportunities.
You are out of free articles for this month
Subscribe as a Guest for $0 and unlock a total of 5 articles per month.
You are out of five articles for this month
Subscribe as an Executive Member for access to unlimited articles, THE
ORTHOPAEDIC INDUSTRY ANNUAL REPORT and more.
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
Copy to clipboard 
