📖 Approx. 5 minutes ／ Updated May 5, 2026
1. Financial Statement Disclosure System for Medical Corporations
Medical corporations exceeding a certain size are obligated to submit their business reports and financial statements to the supervising authority.
2. Submitted Documents
Balance Sheet, Income Statement, Business Report, Auditor’s Report, Related Business Report.
3. Submission Deadline
Submission to the supervising authority within 3 months after the end of the fiscal year.
4. Scope of Public Inspection
Available for inspection by members, creditors, and the supervising authority. Some documents are published online.
5. Penalties for Non-Submission
Subject to administrative actions such as improvement orders and business suspension orders.
6. Points to Organize Before M&A
Submission status for the last 3 fiscal years, accuracy of content, and completeness of related business reports.
Start with a Free Consultation
For consultations regarding medical business succession and M&A, contact M&A Medical, specialists in the medical industry. Please reach out for your first step via our inquiry form or our 60-second free preliminary assessment. We are an M&A support institution certified by the Small and Medium Enterprise Agency, operate on a success fee basis (no upfront fees), and serve clients nationwide with strict confidentiality.
Key Takeaways of This Article
Support from tax accountants and CPAs knowledgeable in the unique information disclosure rules for medical corporations, such as the financial statement disclosure system, the obligation to submit financial statements to the supervising authority (for certain sizes), and the creation of related business reports, is essential.
Latest Trends in the Medical M&A Industry
Since 2020, the number of business succession M&A deals in Japan’s healthcare industry has rapidly increased. According to a survey by the Japan Medical Association, the average age of practicing physicians exceeds 60, with an estimated 40% facing a lack of successors. On the other hand, demand for succession by medical corporations and corporate groups is also expanding, leading to a record number of matching opportunities for both sellers and buyers.
- Demand for Clinic Succession: Over 1,000 M&A and business succession deals occur annually (estimated).
- Trend Towards Medical Corporation Status: Increasing cases of succession after transitioning from individual practice to a medical corporation.
- Diversification of Acquirer Candidates: Medical group corporations, business companies, independent-minded employed physicians, fund-related entities, etc.
- Impact of Regulatory Changes: Medical Act revisions, extension of the certified medical corporation system, and medical fee revisions influence succession strategies.
Considering these industry trends, early information gathering, expert consultation, and timing are key to success.
Practical Checklist (For Tax Accountants & CPAs)
When supporting your clients’ medical M&A transactions, systematically review the following items:
- ☑ Accuracy of financial statements and tax returns for the last 3 fiscal years
- ☑ Compliance with Medical Corporation Accounting Standards (for entities of a certain size)
- ☑ Completeness of related business reports
- ☑ Appropriateness of executive compensation and status of pre-determined bonuses
- ☑ Recognition of provisions for retirement benefits and bonuses
- ☑ Existence of off-balance sheet liabilities (unpaid overtime, social insurance non-enrollment, litigation)
- ☑ Valuation of equity stakes (net asset method, income capitalization method)
- ☑ Potential utilization of the certified medical corporation system
- ☑ Optimal allocation of capital gains, retirement income, and dividend income
- ☑ Submission schedule to the supervising authority
Actual Support Cases
Examples of business succession and M&A cases supported by M&A Medical (partial, details omitted due to confidentiality agreements):
- Case A: Urban Clinic: A clinic in a metropolitan area, with a 70-year-old director facing succession issues, was transferred to a medical corporation group. All staff retained employment, and patient care continued. The process from consultation to closing took approximately 8 months.
- Case B: Rural Clinic: The region’s sole clinic was succeeded by a nearby medical corporation, ensuring the continuation of local medical services. This was achieved through collaboration with a physician returning to the area.
- Case C: Strategic Acquisition: An employed physician planning a new practice acquired an existing clinic with a favorable location, staff, and operating licenses. Medical services commenced within six months, saving approximately two years compared to establishing a new practice.
In each case, we facilitated the alignment of desired conditions for both sellers and buyers, carefully addressing industry-specific issues such as continuity of medical services, licensing, and staff treatment.
Frequently Asked Questions (FAQ)
Q. How should a tax accountant or CPA get involved when consulted by a client about business succession?
The involvement of tax accountants and CPAs spans multiple phases, including tax scheme planning, financial due diligence, and post-transfer income design. M&A Medical collaborates with you as a partner professional, providing support that complements your existing client relationships by addressing M&A-specific issues unique to the medical field (medical corporation accounting standards, equity stake valuation, related business reports, etc.).
Q. What are the common points that tax accountants overlook in medical corporation M&A?
Specific points unique to medical corporations include: ① Notifications to the supervising authority regarding changes in member and director composition, ② Differences in tax treatment between medical corporations with and without equity stakes, ③ Potential utilization of the certified medical corporation system, ④ Completeness of related business reports, and ⑤ Compliance with Medical Corporation Accounting Standards. Proceeding with the assumption that it’s similar to general M&A can lead to significant oversights.
Q. What are the collaboration models with M&A Medical?
We can collaborate with your firm on a case-by-case basis or establish a long-term partnership. We work together to advance transactions by dividing roles in each phase, such as tax scheme design for sellers, financial due diligence for buyers, and post-transfer income design. Please contact us for details.
Related Articles & Services
Please also refer to the following articles in conjunction with this one:
- Comprehensive Guide to Tax Schemes for Medical Corporation M&A
- Taxation Practices for Equity Stake Transfers
- Utilizing the Certified Medical Corporation System
- Inheritance Tax Planning for Medical Corporations
Information on Free Consultations & Preliminary Assessments
For consultations regarding medical business succession and M&A, please feel free to contact M&A Medical, specialists in the medical industry. As an M&A support institution certified by the Small and Medium Enterprise Agency, we design M&A deals that create long-term value for both sellers and buyers.
- ✅ Certified M&A Support Institution by the Small and Medium Enterprise Agency
- ✅ Specialists in the Medical Industry – Nationwide Service
- ✅ Fully Success-Based Fee Structure (No upfront fees, no monthly fees, no interim payments)
- ✅ Strict Confidentiality Assured with NDA Agreement
- ✅ Anonymous Consultations & Free Preliminary Assessments Available
Please reach out for your first step via our Inquiry Form or our 60-second Free Preliminary Assessment.