2026 Med Tech M&A Outlook

Industry report

Medical technology transaction activity is supported by aging demographics, procedure volume growth, and strategic acquirers’ reliance on M&A to replenish product pipelines and enter adjacent categories.

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Founders Group

Ali Naseer
Co-Founder & Partner
Ali@FoundersG.com (952) 797-4679
Matt Menzi
Co-Founder & Partner
Matt@FoundersG.com (301) 767-5616

EXECUTIVE SUMMARY

Strategic medtech M&A has returned at scale, with increasing middle-market activity

Large acquirers are reshaping portfolios around growth, clinical differentiation and recurring consumables, while sponsors continue building focused device and manufacturing platforms.

Strategic acquirers are completing large transactions
Category leaders are using M&A to add high-growth vascular, monitoring and specialty-device platforms.
Portfolio restructuring is creating acquisition opportunities
Carve-outs are forming new platforms in medical OEM, devices and enabling technologies.
Procedure-volume growth remains durable
Aging demographics and minimally invasive care support demand across multiple device categories.
Clinical evidence supports pricing and adoption
Differentiated outcomes, reimbursement and physician adoption remain central to strategic value.
Medical-device manufacturing continues to consolidate
OEMs value partners that combine design, regulatory, quality and specialized process capability.
Tariffs and supply-chain exposure affect diligence
Country exposure, component sourcing and redundant capacity increasingly influence diligence.

SECTOR AT A GLANCE

Six lanes capture the principal lower-middle- market opportunities

Valuation depends on whether the business owns a product, a recurring consumable, a technical manufacturing capability or an installed-base relationship.

Exhibit 1

Investable lane	Business model	Primary buyer lens	Key risk
Therapeutic devices & implants	Proprietary products used in procedures	Clinical outcomes, adoption and reimbursement	Product concentration
Diagnostics & monitoring	Instruments, sensors and recurring tests	Installed base, data and consumables	Regulatory / adoption
Consumables & single-use products	Recurring procedure-linked products	Attach rate and recurring demand	Price / sourcing
Surgical instruments & accessories	Reusable and disposable procedure tools	Surgeon preference and channel	SKU complexity
Outsourced device manufacturing	Design, components and finished devices	Qualification, process capability and transfer	Customer concentration
Equipment, service & digital enablement	Capital equipment, service and software	Installed base and recurring service	Capex cycles

MARKET UPDATE

Medtech transaction activity is broad, while reported value remains concentrated in large deals

The largest announced transactions dominate reported value, while private add-ons continue across devices, OEM manufacturing and carve-outs.

$36.5bn: Reported medtech deal value in the latest half-year
Decade-high: Reported transaction value in the preceding full year
2: Mega-deals responsible for most disclosed half-year value

Exhibit 2

Theme	Market interpretation	Owner evidence that matters
Portfolio focus	Large strategics are reallocating capital toward categories with durable growth and leadership potential.	Show category position and strategic adjacency.
Minimally invasive care	Vascular, structural-heart and procedure-enabling technologies remain acquisition priorities.	Document outcomes, adoption and procedure growth.
Recurring revenue	Consumables, service and software can improve visibility around device sales.	Segment installed base, attach rate and retention.
Supply-chain resilience	OEMs want qualified partners with redundancy and stable sourcing.	Map critical suppliers, transfer plans and country exposure.
Regulatory execution	Approval pathway and quality history can change value and certainty.	Prepare submissions, audits, complaints and CAPA evidence.

PRIVATE DEAL ACTIVITY

Private deal activity is strongest where capability is difficult to build

Sponsors and strategics continue acquiring specialized manufacturing, niche devices and carve-outs with clear category logic.

Carve-outs: Important source of new platforms and focused product portfolios
OEM: Consolidation targets qualified processes and finished-device capability
Strategic: Clinical adjacency can support premiums beyond financial value

Exhibit 3

Activity category	Buyer activity	Implications for owners
Therapeutic devices	Strategics are buying category leaders and clinically differentiated growth assets.	Adoption and reimbursement can matter more than current EBITDA.
Patient monitoring	Large buyers are adding installed-base and consumable revenue.	Clinical data and recurring sensors strengthen value.
Medical OEM	Sponsors are forming platforms through corporate carve-outs and add-ons.	Transfer readiness and customer qualification are central.
Contract manufacturing	Platforms are adding extrusion, molding, machining and finished-device assembly.	Technical processes and design involvement create stickiness.
Surgical products	Focused device platforms are combining niche product families.	Surgeon preference and channel access support cross-sell.

BUYER LANDSCAPE

Strategic acquirers, focused device platforms and financial sponsors remain active

The likely leader depends on whether value comes from clinical growth, recurring revenue, a manufacturing process or a carve-out opportunity.

Exhibit 4

Buyer type	Typical objective	What can create differentiated value	Common constraint
Global medtech strategics	Add category leadership and product growth	Commercial channel, reimbursement and clinical synergies	Portfolio hurdles and regulatory review
Diversified life-science groups	Extend diagnostics and monitoring capability	Installed base, consumables and workflow	Adjacency and integration
Sponsor-backed device platforms	Add products and surgeon relationships	Shared channel and regulatory infrastructure	Product concentration
Medical OEM platforms	Add qualified processes and customer access	Transfer capability and cross-sell	Customer concentration and capex
New platform sponsors	Back a focused product or manufacturing anchor	Management, systems and acquisition runway	Scale and regulatory complexity

VALUATION FRAMEWORK

Clinical relevance and recurring economics support valuation premiums

Product ownership, reimbursement, installed base and quality history often matter more than broad medtech labels.

6-9x: Common tuck-in band for profitable mature assets
9-16x: Common platform band across stronger lanes
15x+: Possible for scaled leaders with growth and strategic scarcity

Exhibit 5

Valuation lens	Why it matters	What strengthens the case
Clinical differentiation	Better outcomes or workflow can support adoption and pricing.	Use evidence that is relevant to buyer diligence.
Recurring revenue	Consumables, service and software improve visibility.	Track installed base, attach rate and replacement cadence.
Regulatory and quality	Clean systems reduce liability and integration risk.	Prepare audit, complaint, recall and CAPA history.
Commercial traction	Physician adoption and channel productivity validate the product.	Show cohort adoption, retention and salesforce economics.
Manufacturing transferability	Qualified processes and stable supply protect revenue.	Document yields, suppliers, capacity and transfer protocols.

VALUATION FRAMEWORK | FOUNDERS GROUP INDICATIVE RANGES

Product ownership and strategic scarcity increase valuation dispersion

Ranges are Founders Group guideposts for commercial, profitable lower-middle-market businesses—not quoted prices or a substitute for product-specific analysis.

Exhibit 6

Exhibit 7

Lens	What changes the outcome
Premium drivers	High organic growth; clinical differentiation; reimbursement; recurring consumables; category leadership; clean quality record; diversified products; strong channel; protected IP.
Discount drivers	Single-product risk; weak reimbursement; quality events; customer concentration; supply fragility; obsolete equipment; heavy capex; low gross margin; founder dependence.
Structure matters	Milestones, earnouts, contingent value, product liabilities, rollover, working capital and assumed regulatory obligations can change proceeds at the same headline valuation.

SELECTED ANNOUNCED TRANSACTIONS | SCALED PLATFORMS

Scaled transactions demonstrate demand for category-leading assets

Selected transactions illustrate buyer priorities; they are not an exhaustive market sample.

Exhibit 8

Target / transaction	Buyer / ownership	Lane	Reported value	Strategic rationale
Penumbra	Boston Scientific	Vascular devices	$14.5bn	Adds a high-growth thrombectomy category leader
Shockwave Medical	Johnson & Johnson	Cardiovascular	$13.1bn	Expands into intravascular lithotripsy
Masimo	Danaher	Patient monitoring	$9.9bn	Adds monitoring, sensors and recurring revenue
Inari Medical	Stryker	Vascular devices	$4.9bn	Builds peripheral vascular capability
Axonics	Boston Scientific	Urology devices	$3.7bn	Adds sacral-neuromodulation leadership
Teleflex Medical OEM	Montagu and Kohlberg	Medical OEM	$1.5bn	Creates an independent design and manufacturing platform
Medical Manufacturing Technologies	Perimeter Solutions	Manufacturing equipment	$685m	Adds mission-critical device-production technology

SELECTED ANNOUNCED TRANSACTIONS | ADD-ONS AND CAPABILITIES

Add-on acquisitions are expanding product portfolios, qualified processes and channel access

Most private prices remain undisclosed, but the repeated acquisition logic is clear.

Exhibit 9

Target	Acquirer	Lane	Strategic rationale	Reported value
GenX Medical	Medical Manufacturing Technologies	Device manufacturing	Adds extrusion and specialty process capability	Not disclosed
Duke Empirical	TEAM Technologies	Device manufacturing	Expands design, development and production	Not disclosed
LISI Medical division	SK Capital / Precera Medical	Medical OEM	Creates a focused orthopedic manufacturing platform	Not disclosed
Vascular Technology + Parks Medical	JLL Partners	Vascular diagnostics	Combines complementary vascular product lines	Not disclosed
Cook Medical ENT assets	C2Dx / Shore Capital	Surgical products	Builds a diversified specialty-device platform	Not disclosed
Command Medical Products	Argosy Healthcare Partners	Contract manufacturing	Recapitalizes a specialty disposable-products manufacturer	Not disclosed
Atrion	Nordson	Infusion / cardiovascular	Adds proprietary fluid-delivery products	$800m

SUBSECTOR 1 OF 6

Therapeutic devices and implants

Clinical outcomes, reimbursement and category position can support premium strategic value far beyond a standard manufacturing multiple.

7.0-10.0x EBITDA: Indicative tuck-in valuation
11.0-16.0x EBITDA: Indicative platform valuation
Procedures + product adoption: Core economic model

Exhibit 10

Lens	Assessment
Buyer universe	Johnson & Johnson; Stryker; Boston Scientific; Medtronic; Abbott; Zimmer Biomet; Edwards; focused sponsor-backed device groups.
What buyers underwrite	Procedure growth; clinical evidence; reimbursement; physician adoption; product pipeline; gross margin; IP; regulatory status; channel productivity.
Current market developments	Large acquirers are prioritizing minimally invasive and high-growth therapeutic categories that can extend existing clinical franchises.
Principal risks	Single-product exposure; clinical events; reimbursement changes; surgeon concentration; patent challenges; recall or complaint history.

Selected market signal

Recent vascular-device acquisitions demonstrate the strategic premium available for category leadership and durable procedure growth.

SUBSECTOR 2 OF 6

Diagnostics and patient monitoring

Installed base, recurring sensors and clinically embedded data can create durable economics and strategic relevance.

6.0-9.0x EBITDA: Indicative tuck-in valuation
10.0-15.0x EBITDA: Indicative platform valuation
Instruments + recurring tests: Core economic model

Exhibit 11

Lens	Assessment
Buyer universe	Danaher; Abbott; Roche; Siemens Healthineers; GE HealthCare; Philips; Becton Dickinson; diagnostics platforms.
What buyers underwrite	Installed base; consumable pull-through; utilization; menu breadth; clinical workflow; reimbursement; data rights; service revenue; quality.
Current market developments	Strategics are combining monitoring, diagnostics and informatics to own more of the clinical decision workflow.
Principal risks	Instrument placements without utilization; reimbursement; interoperability; cybersecurity; regulatory claims; component sourcing.

Selected market signal

A large patient-monitoring acquisition highlights the value of combining installed devices with recurring sensors and clinical data.

SUBSECTOR 3 OF 6

Consumables and single-use products

Procedure-linked recurrence and qualification can create attractive visibility when pricing and sourcing are controlled.

6.0-9.0x EBITDA: Indicative tuck-in valuation
9.0-14.0x EBITDA: Indicative platform valuation
Procedure volume + repeat use: Core economic model

Exhibit 12

Lens	Assessment
Buyer universe	Becton Dickinson; Cardinal Health; Medline; ICU Medical; Nordson Medical; specialty consumables groups and sponsors.
What buyers underwrite	Procedure linkage; recurring orders; gross margin; qualification; customer concentration; private label; sourcing; sterilization; inventory.
Current market developments	Buyers continue to favor single-use products that attach to an installed base or recurring clinical procedure.
Principal risks	Commodity pricing; resin and component costs; sterilization capacity; customer rebids; private-label concentration; quality events.

Selected market signal

Strategic acquisitions of infusion and cardiovascular consumables show how recurring demand can complement equipment and device portfolios.

SUBSECTOR 4 OF 6

Surgical instruments and accessories

Surgeon preference, niche clinical categories and channel access support consolidation across reusable and disposable surgical products.

6.0-9.0x EBITDA: Indicative tuck-in valuation
10.0-14.0x EBITDA: Indicative platform valuation
Products + surgeon channel: Core economic model

Exhibit 13

Lens	Assessment
Buyer universe	Stryker; Integra; CONMED; Zimmer Biomet; Innovia Medical; C2Dx; specialty surgical platforms.
What buyers underwrite	Surgeon loyalty; distribution; SKU productivity; gross margin; product registrations; cross-sell; procedure growth; instrument repair and service.
Current market developments	Focused platforms are acquiring non-core product lines and combining complementary specialty-surgical portfolios.
Principal risks	SKU sprawl; distributor dependence; low-velocity inventory; product liability; aging registrations; concentrated surgeons or hospitals.

Selected market signal

Carve-outs of specialty product families can create attractive platforms when commercial and regulatory infrastructure are transferred cleanly.

SUBSECTOR 5 OF 6

Outsourced medical-device manufacturing

Deep customer integration, qualified processes and design involvement can create sticky revenue, with concentration and capex as the main counterweights.

6.0-9.0x EBITDA: Indicative tuck-in valuation
9.0-13.0x EBITDA: Indicative platform valuation
Qualified processes + programs: Core economic model

Exhibit 14

Lens	Assessment
Buyer universe	Integer; TE Connectivity; Jabil; Flex; Resonetics; Cirtec; TEAM Technologies; Precera Medical; specialist sponsor platforms.
What buyers underwrite	Program tenure; design involvement; qualification; customer concentration; margin by program; yields; transfer pipeline; capacity; quality; maintenance capex.
Current market developments	Platforms are combining extrusion, machining, molding, assembly and finished-device capability to serve OEMs across the product lifecycle.
Principal risks	Major-customer concentration; OEM insourcing; transfer delays; quality escapes; underused capacity; obsolete equipment; price-down clauses.

Selected market signal

Recent carve-outs and manufacturing add-ons show continued demand for qualified, integrated OEM partners.

SUBSECTOR 6 OF 6

Medical equipment, service and digital enablement

Installed-base service and software can improve recurring economics around capital equipment, while purchasing cycles and interoperability create risk.

5.0-8.0x EBITDA: Indicative tuck-in valuation
8.0-12.0x EBITDA: Indicative platform valuation
Equipment + service / software: Core economic model

Exhibit 15

Lens	Assessment
Buyer universe	GE HealthCare; Siemens Healthineers; Philips; Baxter; PartsSource; equipment-service platforms; health-technology strategics.
What buyers underwrite	Installed base; service attach; uptime; recurring software; parts availability; utilization; sales cycle; capital budget exposure; cybersecurity.
Current market developments	Hospitals are seeking uptime, lifecycle management and interoperable data, supporting service and technology around the equipment base.
Principal risks	Capital-budget deferrals; OEM restrictions; parts availability; cyber risk; obsolete platforms; customer concentration; low service attachment.

Selected market signal

Buyers favor models that convert a one-time equipment sale into a durable service, consumable or data relationship.

CONSOLIDATOR LANDSCAPE

Relevant buyers vary by clinical category and ownership of product capabilities

Representative consolidators and ownership reflect the 2H26 market; the list is not exhaustive.

Exhibit 16

Lane	Representative sponsor-backed / private	Representative strategic / public	Typical acquisition logic
Therapeutic devices	Focused sponsor-backed device groups	J&J; Stryker; Boston Scientific; Medtronic; Abbott; Zimmer	Clinical category, adoption and pipeline
Diagnostics / monitoring	Private diagnostics and informatics platforms	Danaher; Abbott; Roche; Siemens; GE HealthCare; Philips	Installed base, tests and data
Consumables	Specialty disposable-product platforms	BD; Cardinal Health; Medline; ICU Medical; Nordson	Recurring use and portfolio adjacency
Surgical products	Innovia; C2Dx; focused surgical groups	Stryker; Integra; CONMED; Zimmer	Surgeon channel and product cross-sell
Device manufacturing	Resonetics; Cirtec; TEAM; Precera; sponsor platforms	Integer; TE Connectivity; Jabil; Flex	Processes, qualification and customers
Equipment / service	PartsSource and equipment-service platforms	GE HealthCare; Siemens; Philips; Baxter	Installed base, service and workflow

OWNER PREPARATION AND MARKET OUTLOOK

Prepare clinical, regulatory, quality and commercial evidence before diligence begins

Medtech value depends on clinical, regulatory, quality, commercial and supply-chain evidence working together.

Exhibit 17

	Preparation priority	Required evidence
1	Prove product-level economics	Reconcile revenue, gross margin, inventory and contribution by product family and customer.
2	Organize clinical and reimbursement evidence	Connect claims, outcomes, adoption and payor coverage to the commercial forecast.
3	Prepare the quality file	Summarize audits, complaints, recalls, CAPAs, supplier issues and regulatory correspondence.
4	Map the supply chain	Identify critical components, sole sources, country exposure, lead times and qualification alternatives.
5	Show commercial productivity	Track installed base, utilization, attach rates, salesforce output and customer retention.
6	Protect the development pipeline	Document design history, IP, milestones, required investment and realistic probability of success.

Founders Group outlook

Strategic activity should remain strong in high-growth therapeutic and monitoring categories. Carve-outs should continue creating sponsor-backed product and medical-OEM platforms. Manufacturing consolidation will favor qualified, design-involved suppliers with redundant capacity. Tariff, sourcing and quality-system diligence will increasingly influence certainty and structure.

ABOUT THIS REPORT

Use this report as market context, not as a valuation opinion

A 2H26 view of private deal activity, consolidators, valuation context and owner priorities across Med Tech & Devices.

Methodology

Market observations reflect current transaction patterns, disclosed consideration and operating developments across medical technology and devices. Disclosed multiples are shown only when transaction value and a matching earnings measure were public. Founders Group indicative ranges focus on commercial, profitable businesses and triangulate private-market behavior, disclosed precedents and subsector judgment; they should not be read as a fairness opinion or valuation conclusion.

1: Market observations Current transaction patterns and operating themes.
2: Disclosed transactions Values are shown only when transaction consideration was public.
3: Indicative ranges Founders Group judgment based on size, quality and buyer behavior.

Exhibit 18

Term	Meaning in this report
Tuck-in	A smaller acquisition integrated into an existing platform. Strategic fit, geography, capability and customer density may influence value.
Platform	A business capable of standing alone as a buyer's sector anchor, with management, systems and a repeatable growth model.
Enterprise value / EBITDA	A valuation ratio comparing enterprise value with adjusted earnings before interest, taxes, depreciation and amortization.
Indicative range	A market guidepost rather than a quoted price. Actual outcomes depend on company-specific facts, structure and process.

Disclaimer

This material is for general informational purposes only and does not constitute investment, legal, tax, accounting or valuation advice, an offer to sell, or a solicitation to buy any security. Information is believed reliable but has not been independently verified and may be incomplete. Actual transaction outcomes depend on company-specific facts, market conditions, structure and process. Past transactions and market observations are not indicative of future results.

Founders Group

Ali Naseer
Co-Founder & Partner
Ali@FoundersG.com (952) 797-4679
Matt Menzi
Co-Founder & Partner
Matt@FoundersG.com (301) 767-5616

San Francisco · Denver · Minneapolis · New Yorkwww.foundersg.com

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Med Tech & Devices