Driving Revenue Growth at Your MedTech Company
Driving revenues in a MedTech company is a priority to all owners and executives. Whether your MedTech company is publicly held or a successful private entity, sales growth will undoubtedly increase the value of your greatest asset.
There are two ways for executives to achieve above average growth year after year:
- The first is through organic sales efforts directed through the company’s internal capabilities.
- The second option is to implement an inorganic growth strategy or growth through strategic acquisitions.
In lower to middle market companies, organic growth is the most convenient and affordable means to increase the customer base.
The Kinsella Report, an annual research project on the medical contract manufacturing market, found that 83.6% of total sales were generated from accounts or projects on which a non-commissioned salesperson was paid. This is typically a function of a company that pays its sales force for new business acquisition, supporting clients with a team of experienced engineers, technicians, and administrative professionals. With owner operators typically being the first and largest sales professional at an entrepreneurial MedTech company, this statistic should be no surprise.
For MedTech executives determined to generate top line growth with an internal sales team, it will be necessary to identify and hire the best and the brightest in the industry. Onboarding the right salesperson results in fewer integration challenges than an acquisition and contributes to sustainable, albeit slower, revenue growth. Proper integration of a new sales professional in your MedTech firm creates a tight knit organization with an immediate knowledge of the company’s operations and strategic focus.
With competition driving the MedTech market, an increase in growth and capabilities may have a shorter timeline. Companies determined to grow quickly should employ a strategy incorporating strategic acquisitions.
When an industry leader successfully completes an acquisition, instantly adding new clients and expanded capabilities, competitors feel the pressure to grow more quickly than would be possible organically. Mergers and Acquisitions in the MedTech space provide the opportunity to grow the client base exponentially over a relatively short period of time.
In addition to expediting revenue growth, an effectively implemented acquisition strategy will allow a MedTech company to quickly gain competitive advantage in the marketplace, increase expertise through the acquisition of experienced personnel and allow for larger credit facilities.
Whether your firm works to achieve its growth objectives through organic initiatives or through a carefully orchestrated acquisition strategy, focused and successful execution is required from your executive team. Regardless of where you are in your journey as a MedTech executive, revenue and earnings growth must be achieved year over year.
Kinsella Group represents buyers and sellers exclusively in the MedTech and Medical Contract Manufacturing markets. For more information on The Kinsella Report or a confidential conversation on growth strategies for your firm, please contact Bob Kinsella at firstname.lastname@example.org or at (312)229-1357.