In a recent panel discussion, Stryker executives shared valuable insights into the company’s tactical approach to M&A strategy. The conversation highlighted several critical elements of their strategy, reflecting a deep commitment to sustainable growth and effective integration. Here are six key points from the discussion.

Long-Term M&A Strategy and Commitment

Stryker’s long-term commitment to M&A has been a cornerstone of its growth strategy. Bryant Zanko, who leads corporate business development at Stryker, emphasized this commitment: “M&A has really been in our DNA. If you look at most of our divisions, the nucleus of that was an acquisition.” This long-term perspective has allowed Stryker to continually expand and innovate, leveraging acquisitions to build a robust portfolio across various healthcare segments. The focus on M&A strategy was driven by the recognition that acquisitions can be a powerful tool for achieving growth and maintaining a competitive edge in the medtech industry.

Importance of Effective Integration

The evolution of Stryker’s integration practices was another central topic. Adam Wollowick, responsible for business development in trauma and extremities, highlighted the critical nature of integration, reflecting on past challenges. “We did not have a robust approach to integration. We did not have best practices playbooks. As a result, I think we under-optimized some of the early acquisitions.” Stryker’s commitment to improving integration practices has led to the development of comprehensive best practices and playbooks, ensuring that acquisitions deliver maximum value. This focus on integration is essential for realizing the full potential of acquired companies and technologies.

Cultural Fit and Employee Retention

Siddarth Satish, who joined Stryker through the acquisition of Gauss Surgical, underscored the significance of cultural fit and employee retention in the success of acquisitions: “We have not lost a single person since two and a half years ago—and it's really because of the mission, the kind of work we're doing, and the people we get to work with.” Stryker’s ability to retain talent post-acquisition is a testament to its strong corporate culture and commitment to maintaining a mission-driven environment. Ensuring acquired companies and their employees align with Stryker’s values has cultivated a cohesive and motivated workforce.

Valuation and Growth Strategy

Bryant Zanko explained Stryker’s approach to valuation and growth, emphasizing a focus on long-term returns. “We are phenomenally focused on return on invested capital over time. We will accept longer ROIC and economic returns if we see the long-term benefit.” This strategy involves prioritizing acquisitions that offer substantial growth potential, even if it means waiting for the right opportunity. By focusing on long-term economic returns, Stryker ensures that its acquisitions align with its broader strategic goals and contribute to sustained growth.

Early and Detailed Integration Planning

Adam Wollowick stressed the importance of early integration planning, highlighting how this approach contributes to successful acquisitions: “We integrate integration at the earliest phases of the deal. It's not even diligence; it’s pre-diligence that the integration planning is already starting to take place.” Starting integration planning early allows Stryker to identify potential challenges and opportunities well in advance, ensuring a smoother and more impactful integration process. This proactive approach helps to maximize the value of acquisitions and facilitates a seamless transition for acquired companies.

Decentralized Business Development Approach

Stryker’s decentralized approach to business development was discussed as a core factor in its success. Emily West and Adam Wollowick elaborated on how this approach allows for deep market connections and effective business development. “We have teams embedded in each of our divisions responsible for driving growth. This decentralization allows us to have deep connections to the market, customer focus, and relationships with our selling channel.” By embedding business development teams within each division, Stryker ensures its strategies align closely with medtech industry needs and customer demands, fostering innovation and growth.

Conclusion

Stryker’s M&A strategy is characterized by a long-term commitment, impactful integration practices, a focus on cultural fit, strategic valuation, early planning, and a decentralized business development model. These elements have enabled Stryker to grow and innovate continuously, maintaining its position as a leader in the medtech industry. The insights shared by the panelists provide a valuable roadmap for other companies looking to leverage M&A for sustainable growth and success.

The full recording of this featured session is available in LSI’s resource hub at the link below:

• Stryker’s Journey to $20B and the Role of M&A | LSI USA '24

To hear more insights like this, join over 1,500 executives at LSI USA ‘25 in Dana Point, California on March 17th to 21st 2025. Registration and applications to present are now open.