Are Dental Clinics a “Declining Industry”? The “Real Reasons” Behind Record

The article from Toyo Keizai Online highlights the harsh reality facing the dental clinic industry. The background of record-high bankruptcies and closures suggests that it is not simply a decline in demand, but a complex interplay of factors including squeezed profits due to revisions in medical fees, soaring labor costs, and the burden of high-value equipment investments. This is a common challenge faced by many medical institutions, not just dental clinics.

From the perspective of medical M&A and business succession, this news underscores the importance of "early consultation." By consulting with experts before management deteriorates and the business falls into excess liabilities, the possibility of securing compensation through business transfer, maintaining staff employment, and continuing services to patients increases. Particularly in cases where the owner's personal guarantee remains, proceeding with M&A while the business is in sound financial health makes it easier to negotiate the release of personal guarantees.

For managers of medical institutions or those facing succession issues, this situation should be viewed not as a reason to fear the label of a "declining industry," but as an opportunity to adapt to change and consider strategic business succession. Before reaching the decision to close, proactively and early consideration of "succession" as an option to contribute to regional healthcare and connect one's business to the future will be key to finding the best solution.