MedTech Dive November 29, 2023
GE HealthCare, Johnson & Johnson and Danaher completed transactions this year. Baxter, 3M and Medtronic are now on deck.
Corporate spinoffs are redefining the medical technology sector, as executives look to sharpen the focus of their operations, boost revenue and profit, and improve investor returns.
Parent companies are taking aim at the “conglomerate discount,” a phenomenon where large organizations are valued at less than the sum of their component businesses, said Jim Welch, global medtech leader at consulting firm Ernst & Young.
While spinoffs tend to underperform the market in their first year, they outperform over a three- to five-year timeframe, according to a recent analysis by EY and Goldman Sachs that looked at the transactions across a range of...
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