2013 will be the world's medical instrument industry mergers and acquisitions frenzy

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Health care reform

In 2013, it will set off a wave of mergers and acquisitions in the world medical equipment industry? Almost all of the world's top ten medical device manufacturers have come out of acquisition plans or rumors. What makes the originally calm market so crazy?

The M&A market has been calm for a long time.

A weak market, a new tax system, and a shrinking tax rebate policy can all drive transactions.

The flow of CEO-level personnel is very large, which usually indicates that companies are also inclined to merge.

Everything seems to indicate that 2013 will set off a frenzy of mergers and acquisitions.

New taxation and health care reform are the incentives for acquisitions?

The financial crisis of 2009 has had a serious impact, bringing the consolidation and acquisition activities of the medical equipment industry to the bottom, but the situation is constantly changing. Industry executives and bankers say that they are now significantly different from 2009, the new US Tax systems and health care reform programs have also prompted large companies in medical equipment and equipment to start considering acquisitions and mergers.

Since 2012, the acquisition of medical technology and equipment has reached its lowest point in three years. According to Thomson Reuters data, as of August 28, 2012, the value of announced M&A transactions totaled $20 billion, far lower. In the same period last year, it was 53.32 billion US dollars. Among them were transactions closed in June, Johnson & Johnson (the world's second largest medical device manufacturer, also the largest foreign pharmaceutical company in China), $21 billion to buy surgical tool manufacturer Synthes.

The new tax system for the US medical industry will come into effect in 2013. The new tax system is a fund to help health care reform, but it has also led large manufacturers in the medical industry to start sharpening their swords against small and medium-sized manufacturers.

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