Mergers and acquisitions in the medical device industry

Mergers and acquisitions in the Medical Device Industry are the primary mode of exit for early stage companies. The focus of this thesis is to examine factors which influence the value of these M&A transactions from the target and acquiring firm perspectives and to understand the value creation that occurs. Publicly available electronic and published data sources were used to build a database of 674 M&A transactions and 113 IPO events for deals with published deal values and terms between January 1996 and October 2006. In this work, we demonstrate that transaction deal value varies between various medical device industry sectors. Factors that were shown to significantly correlate with M&A transaction deal value included the Sales of the target company, Market Capitalization value of the acquiring company, type of regulatory approval, and whether the company had venture backing prior to acquisition. M&A transactions that involved targets that were Public companies had significantly higher deal values than those that were private. Using 3-day event window analysis, returns of acquiring companies were shown to be slightly negative and significantly less than the S&P composite index returns over the same period.

Department dc:contributor.department

Harvard University--MIT Division of Health Sciences and Technology.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2007

Author dc:creator

• Ohashi, Kevin Lee

Advisor dc:contributor.advisor

• Anthony J. Sinskey and Antoinette Schoar.

• Harvard University--MIT Division of Health Sciences and Technology.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/39576

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/39576