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Daylight in health tech deals market

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Feb 14, 2024
Photo of participants at the Axios BFD Miami Health Tech roundtable.

Participants at the Health Tech Expert Voices panel. Photo: Ledd Villamarzo, Edin Studios

Dawn has broken for health tech dealmakers, said attendees at the Health Tech Expert Voices lunch at BFD Miami on Tuesday, but that doesn't mean all is clear.

Why it matters: For two-plus years, M&A has been stuck in the mud, so traction of any kind bodes well.

State of play: Optimists cite recent transactions such as AssistRX as examples of the improved market.

  • "We are seeing deals come out that you didn't see last year," said Matt Jackson, managing director at Oppenheimer. "And people are willing to pay more for cost of capital to get deals done."

The other side: Not every company has a market to go into yet. Green shoots have appeared in spots, but significant holds on deals remain. Concern centers around lack of surety around rate direction, and pricing discrepancies continue to keep deals out of market.

  • "Prices are too low for some of the good companies," said Sailesh Ramakrishnan of Rocketship.vc. "If companies have capital, they are willing to wait. We have companies willing to wait another two quarters."

The bottom line: Additional conversations at BFD confirmed the sense that more deals are in market, and being prepared to come to market. But the all-clear hasn't been sounded yet.

  • "The trigger point will probably be an actual rate cut," said Bernie Grondin, partner at McDermott Will & Emery.
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