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

The Toyo Keizai Online article highlights the harsh realities facing the dental clinic industry. The surge in bankruptcies and closures/suspensions at a record pace is not merely due to a decline in demand. It is suggested that complex factors are intertwined, including pressure on revenue due to revisions in medical fees, soaring personnel costs, and the burden of expensive equipment investments. These are common challenges faced by many medical institutions, not just dental clinics.

From the perspective of medical M&A and business succession, this news once again emphasizes the importance of "early consultation." By consulting with experts before management deteriorates and leads to insolvency, there is a higher probability of securing better options, such as obtaining consideration through business transfer, maintaining staff employment, and ensuring continuity of patient services. Particularly in cases where the owner's personal guarantees remain, proceeding with M&A while the business is in a healthy financial state can facilitate more favorable negotiations for the release of personal guarantees.

For medical institution owners and those facing succession issues, this situation should not be viewed with fear under the label of a "declining industry," but rather as an opportunity to adapt to change and consider strategic business succession. Before resorting to the option of closure, actively and early consideration of "succession" as an option to contribute to local healthcare and connect one's business to the future will be key to finding the best solution.