Accelerating Mergers & Acquisitions in the Medical Device Industry & the Rise of Data Monetization
As part of a very busy month for Reltio, I attended and presented at an event organized by Q1 Productions dedicated to Medical Device Industry Corporate Strategy and M&A in Atlanta, GA. The meeting was very well attended including representatives from Medtronic, Stryker and other companies sharing their insights into techniques for more effective M&A.
The topic of my presentation was:
Accelerating M&A in the Medical Device Industry with Modern Data Management
We discussed how bringing together clean, reliable, relevant data in a timely fashion from the IT systems of both parties to support an M&A is still largely a manual, inefficient and potentially inaccurate effort.
The audience agreed that the complexity of data siloed across both companies made it very difficult to analyze information within the legal and time constraints of all pending transactions. If the merger goes through, all work is generally discarded, leaving the combined company to start from ground zero. If the merger is called off, someone is left with hardware procured to support the M&A that is wasted.
As part of the presentation I detailed:
- How a multi-billion dollar merger blended & analyzed data from hundreds of sources with full security & audit controls, without spending a dime on hardware
- Why they can also now realize millions of dollars in increased negotiating leverage through better vendor/supplier management
- Which groups are positioned to benefit from new data-driven applications that will significantly improve the efficiency of their day-to-day operations
- I also provided a modern data management Platform as a Service (PaaS) 101 overview, so attendees could understand the difference between MDM, Big Data, IoT, Analytics, Graph databases and Machine Learning
- What other opportunities, including data monetization, are now possibilities for the future
Due to a cancellation I also was asked to dive deeper in a separate presentation on the topic of Data Monetization.
Data Monetization, Chief Data Officers, and Industry Clouds
This session provided details on:
- What exactly is data monetization
- Why Data as a Service (DaaS) is a prerequisite
- How reliable data with full compliance and audit controls are needed as a foundation
- What are the legal ramifications?
- Who is responsible for thinking about monetization?
- What is a chief data officer, and what is his/her role?
- How does a CDO play well with a CIO?
- What are industry clouds, and how will that change the landscape of industry specific data applications
- And even a topic what the future holds for our children's future career choices: whether to learn how to program or be a data scientist
Finally the next day I moderated a lively "war stores" panel on
Lessons Learned from Recent M&A Activities
Distinguished panelists included
- Girish Gangadharan, Analyst, Corporate Strategy & Development, ANALOGIC
- Richard B. Smith, Partner, MCDERMOTT WILL & EMERY
We discussed how over the course of the past 18 months, the medical device industry has experienced some of the highest levels of mergers & acquisition activity recorded to date, and as a result, many executives and organizations have sharpened acquisition skill-sets and have also learned substantial lessons. A lively debate ensued with the panelists and audience around recent experiences, lessons, as well as challenges that lie ahead for the industry as it continues to evolve and grow. The discussion continued throughout the day as attendees identified best practices across the business development spectrum; from identifying appropriate targets to negotiating in order to secure the optimal outcome.
Other key points raised included:
- Managing expectations for earn outs as part of the deal
- The difference between acquiring pre-commercial and commercial companies
- Bringing together sales teams, and managing cost synergies
- Retaining founders of start-ups and incentives
- Legal and contractual requirements
Medical Device M&A continues to be hot. A recent infographic by Medical Device Trends shows some of the latest statistics:
(BTW their site is a wealth of information and you should follow them @mdtrends on twitter)
Contact me if you'd like to chat about your experiences in life sciences and medical device M&A, or if you'd like a copy of my presentations.