3 Things to Know Before Selling Your Medtech Startup

Cash-laden medical device companies continued to make meaningful acquisitions of early-stage companies in 2018, making it a banner year for medtech M&A, and the trend is likely to continue in 2019. It's often easier for early-stage companies to develop innovative and disruptive technologies that address unmet needs in the market and larger medical device companies are looking for ways to deploy capital efficiently to bring innovation to the market. Selling to a large company with plenty of resources can be an attractive option, yet medtech startups sometimes achieve poor outcomes in the sales process if they are not well prepared. These three strategies are key to ensuring a successful outcome. 1. Focus on Your Proof Point Medtech startups with an eye toward selling must focus. A company looking to buy will need to know how, specifically, a new product will enhance their portfolio and their bottom line. But sometimes, early-stage companies get carried away demonstrating every potential use for their innovation. If you invented your product to, for example, make prosthetic hands work better, but found that it also can help prosthetic arms and prosthetic legs and even orthotic hip braces, it would be natural to get excited by those additional applications. But when a large company looks to buy a product that improves prosthetic hands, they'll need to know how, specifically, your product will enhance their prosthetic hand portfolio. And they'll need s...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news