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M&A Update: Medical Device Valuation Multiples Decline in 2013

Medical Device Valuation Multiples Decline in 2013 from The Startup Garage

Since 2011, 252 private medical device companies have been acquired. M&A deals levels. In the trailing four quarters (Q2’12 to Q1’13), there have been 132 private medical device companies acquired versus 97 in the prior four quarters (Q2’11 to Q1’12) highlighting 36% growth YoY.  Almost 9% of the private medial device M&A exits have seen valuations of more than $1 billion.

Although the valuation multiple ranges were quite wide in 2011 and 2012, we are seeing a tightening and contracting of these multiples in 2013 as demonstrated in the graph below that highlights the distribution of price/sales valuation multiples for these private company acquisitions.

The Startup Garage. TSG Enterprise. The Startup Garage. TSG Enterprise. The medical device industry is seeing a tightening and contracting of valuation multiples in 2013.

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