Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is looking for M&A. During the company?s fourth quarter 2023 earning's conference call, Ivan Tornos, President and Chief Executive Officer said that ?Diversification of Zimmer Biomet's end markets will happen not just by innovation internally, but will happen through smart M&A, which will remain the #1 category when it comes to capital allocation. With the best-in-class lever ratio and with deep confidence in our free cash flow generating plans over the next few years, our strategy is to make smart M&A the top recipient of our capital?. Suky Upadhyay, Chief Financial Officer and Executive Vice President Finance, Operations and Supply Chain said that ?I'd say, first of all, the $500 million share buyback, I think, demonstrates our confidence in our outlook in the business.

And the short answer to your question, does this imply some deterioration in M&A targets. And I would say absolutely not. I think based on where the company is from a firepower perspective, we feel that we've got the balance sheet strength and power as well as the forward-looking results to really do both.

We still will prioritize smart M&A, as Ivan has talked about. We still favor tuck-in acquisitions to midsize acquisitions?.