Playbook
Mastering the Medtech Exit
There are so many individual factors that need to be perfectly in place to score an exit in the medical device business——market timing, economic climate, industry trends, and more. Here are lessons from six seasoned veterans who've been around the block and know what it takes to make it happen.
Key Lessons From This Playbook
Identify potential buyers and build relationships: Identify who might acquire your company early on. Build relationships with their trusted advisors and involve them in your work. Keep their commercial teams updated, but focus on building a strong, sustainable business—not just on being acquired.
Set clinical goals that truly matter: Define clinical endpoints that align with what patients and doctors care about, not just regulatory needs. Eliminate risks early to avoid late-stage failures. Focus on real-world needs to build a stronger, more attractive company.
Score early wins, build experience: Start with developing 510(k) products before tackling bigger ones like breakthrough devices. Deeply understand your field, research competitors, get honest feedback, and be ready to pivot. Resolve early risks, especially around reimbursement.
Keep investors few and nimble: Limit your investor group to two or three to streamline decision-making and avoid delays. Too many investors can slow you down with red tape.
Hire top talent for each stage: Begin with a clear vision and surround yourself with the best team. Early on, you need innovative thinkers; as you grow, bring in experts to scale up. Build solid relationships with key stakeholders.
Don't start a company with one eye on the exit: Don't focus solely on being acquired. Build a self-sustaining business that makes a real market impact. Acquirers watch how the market reacts; build long-term value, and the investors will come.
