Q1 2024 – Rate Cut Uncertainty
- Persistent inflation in Q1 2024 delayed expected rate cuts as the Federal Reserve back tracked expectations from four to three cuts this year. This higher-for-longer interest rate environment continues to impact M&A activity as financing remains costly and challenging. As 2024 marks an election year and global conflict continues, there remains heighted volatility and uncertainty throughout the economy. Even so, strong economic fundamentals remain and continue to drive deal making and investor returns for quality assets.
- Q1 2024 Medical M&A experienced a strong quarter by volume with 135 transactions announced for the quarter. This early volume is in line with 2020, 2022, and 2023 and sets 2024 up for a solid year. Services was the leading segment, comprising 27% of transactions. This was closely followed by Equipment, Therapeutic Device, and Consumables & Disposable, each making up 15% of volume.
- The first quarter represented a strong start to the year for Medical Device public companies. The Orthopedic index remained the top performer, up 15.5% for the year, which was in line with the S&P 500 Growth Index which was up 14.4%. The Diversified Diagnostic index was the only one of the group with negative quarterly performance, finishing down 1.3%.
Read Medical Technology M&A Pulse Q1 2024 Full Report
