KPMG is the platinum sponsor of MedTech Rising 2019, the high point of Ireland’s medical technology industry calendar. The event brings together more than 500 medtech professionals along with the world’s leading international experts on a range of key industry topics including delivering better health outcomes, new technologies and cross-sector collaboration, innovation, integrated care, M&As, funding, entrepreneurship and more.
The event takes place in Galway on December 4th and 5th and will feature discussions on key healthcare themes including digitalisation, the changing medtech business model, how trade wars and Brexit are likely to affect the global industry, ongoing advances in personalised healthcare, and opportunities for Ireland to increase the level of medtech R&D carried out in this country.
MedTech Rising will also host the Irish MedTech Association AGM.
“We’ve sponsored the event for many years because this really is the flagship conference for the industry in Ireland”, says KPMG Tax Director Mary McGinley. “Besides meeting prospective clients, it allows us to facilitate networking between existing clients who often end up doing business together. That’s a very powerful opportunity for all of us and it’s great to be able to help facilitate that networking in a relaxed, informal way over the two days.
“Medtech Rising is an amazing opportunity for Irish business to get to grips with cutting edge innovations and the latest medtech leadership thinking from around the world”, she continues. “The conference offers an opportunity to law the groundwork for future collaborations with the industry.”
KPMG works across the entire spectrum of the medtech industry, McGinley explains. “We work with everyone from multinationals through to early-stage start-ups. We also support a lot of Irish privately held companies, many of which spun out of multinationals where their founders worked before leaving to strike out on their own.”
The advice and services offered to these companies ranges from taxation through to transactions, employment issues and international growth.
“Many of these companies are investing in R&D so good advice in relation to tax credits and other incentives is very important”, she notes. “The relatively new Knowledge Development Box relief offering a 6.25% tax rate on income from IP developed in Ireland is attracting more interest from clients and complements the existing tax allowances for IP assets.”
At the other end of the taxation spectrum there is CGT. “For some entrepreneurs, the dream is to have a good idea, develop it to commercial product, secure regulatory approval and then sell the business to a multinational that has the necessary infrastructure to roll the product out globally”, says McGinley. “Naturally it’s not quite as simple as that but we bring our expertise to bear to add real value in that context. We help prepare the business for sale, help identify potential purchasers, and advise on the sales process. And of course, we will make sure that everything is handled in a tax efficient manner.”
For those companies still at the growth phase, KPMG offers fundraising support. “This can be required to acquire complementary businesses, invest in R&D, expand into new markets or other capital investment”, she points out. “And then there are the companies that are looking to sell part of the business which may be non-core to their strategy. And of course, there are the clients that are looking for an outright sale of their business to realise the benefits of all of their hard work.”
On the other hand, many medtech clients are targeting international growth and looking to expand into bigger markets. “One of the challenges here is to get the right corporate structure at the outset. Another key consideration is to balance international tax rules with local Irish tax laws – even within the EU, tax regimes can vary considerably. The fact the we are a global firm ourselves is a big advantage because we have access to local expertise across each continent, yet our clients get a unified recommendation on their tax affairs – that’s a major plus.”
That global reach also comes into play for companies sending staff to new locations. “We can offer support for employees who are moving to a new overseas location”, she adds. “They can tap into our local office in that region for advice whilst still enjoying the support we provide back here in Ireland – it’s a seamless service. That continuum of support offers valuable comfort to clients when they are going through periods of rapid growth and change which can often be quite disruptive.”
She is looking forward to the MedTech Rising event in December. “From my own perspective, this is a really dynamic and inspiring industry to be involved in”, she says. “I love learning about the latest innovations, what medical device companies are doing and so on. The convergence of digital with medtech is a hot topic right now so I’m looking forward to hearing all about that. And I admire the fact that the people in this business are so passionate about what they do and really feel they are making a difference to the world – making treatments more accessible, applying new technologies to improve the quality of life for seriously ill people, giving hope where there was none – it is very inspirational. MedTech Rising is not an event I’d miss, and I know it’s expected to book out again this year, so I’d encourage everyone to secure their tickets now.”
For further information on this highly innovative industry sector download the KPMG Medical Devices 2030 report which looks into the underlying industry dynamics and, using numerous examples and case studies, highlights the exciting possibilities open to device companies.