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Healthtech Investment in Europe Continues to Grow

Updated: Nov 20, 2019

A unique spike in health tech investment should embolden SME & Mid-Market Healthtech business owners to consider moving forward with exit implementation sooner rather than later, if they want to feel sure they will achieve a premium valuation at the top of the market.

Developments in AI and online GPs (!) are playing their part, but the Symmetry team have seen many types of companies in the sector attract multiple bidders.

The demand for data management systems pervades right across the sector, from central government to private consultancies.

This is all being driven, at least in part, by three priorities from central leadership at NHS Digital:

1) Improve & simplify digital access to the NHS

Apps & websites being priority channels for development

2) Make it easier to transact with the NHS

With tech usability and efficiency of information & value exchange the key measures

3) Make it easier for the NHS to recognise individuals

Integrated care records & identity verification seen as solutions

(All of which is amid a concerted effort to converge taxonomic and technological (coding) regimes within the NHS.)

SME & Mid-Market Healthtech companies that are commercially effective in supporting these areas will, in Symmetry's view, continue to sustain earnings growth and consequent valuations in the near to medium term.

But the market is moving fast and many buyers are seeking to buy just one of each type of business which adds something new to their existing suite of services in order to become a one-stop offering which they will then grow organically. That is, as opposed to making multiple competitor acquisitions in pursuit of an inorganic "roll-up". So Healthtech business owners would be well advised to take control of the terms & timing of their exit while market conditions are so favourable.

Jonathan Tate

November 2019

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