As Mr. Wyss begins to approach his golden years, one has to wonder whom has the fire power to buy this company? Someone once commented that a monkey could run Synthes and it still would be profitable. Based on this company's marketshare in Trauma, Spine, Maxillofacial, Biologics, and Power Tools that assessment was probably correct. In addition, just look at the "monkeys" that are currently running this company.
Hansjoerg Wyss has to be in his mid 70's, and regardless of someone's education, money or power, those of you that know the Spine Blogger know how I feel about Septuagenarians in politics or running a company. The mind starts to go and life begins to pass you by. Hansjoerg has turned the overall management of the company to his nephew ( a big mistake, but what can you say about nepotism). At this point in his life, he should enjoy playing tennis, flying his Lear Jet, drinking wine at the Halter Ranch and occasionally pinching a young woman's derriere (not necessarily in that order).
So who can buy Synthes? There is only one company that has the capital and leverage; GE Healthcare. A $17 billion dollar unit of General Electric with products in the following clinical specialties, Cardiology, ENT, Oncology, General Surgery, Urology and Orthopaedics this would compliment their portfolio. In addition, this company needs to stimulate its image. Ever since Neutron Jack left, the company has floundered.
The question then becomes, what would the multiple be? In all likelihood somewhere in the area of 3-5X. This would allow Wyss to endow his beloved Harvard, the Sierra Club, and take care of his immediate family.
GE Trauma? GE Spine? GE Maxillofacial? Sounds nice! Let's wait and see, time loves a hero!