Hair Removal Salon Bankrupt, Paid ¥300,000 But Can’t Get a Penny Back: “Do We Just Have to Accept It?” – Tokyo Shimbun Digital

Although this news concerns a bankruptcy case of a hair removal salon, it contains extremely important implications for considering business succession of medical institutions.

Medical institutions, like hair removal salons, may also hold advance payments from customers (such as reservation deposits for self-pay treatments or purchases of multi-session tickets from patients). If a medical institution faces financial difficulties and closes down without sufficient assets, there is a risk that these advance payments will not be refunded to patients. This directly impacts the credibility of the medical institution, not only leading to a loss of trust from the local community but also potentially escalating into legal disputes.

In the context of medical M&A and business succession, 'early countermeasures' to prevent such situations are key. It is extremely important to consult with experts (such as M&A intermediaries, tax accountants, and lawyers) before management deteriorates and the institution becomes insolvent. Early consultation allows for the appropriate valuation of the medical institution's assets (such as medical fees receivable, equipment, and real estate), facilitating favorable negotiations with potential successors and acquiring companies. This enables the securing of transfer consideration, maintenance of staff employment, and, above all, the continuation of services to patients.

Particularly in the case of privately-owned clinics, many clinic directors are aging and face the issue of lacking a successor. In such situations, considering business succession through M&A, rather than just closure, can be a wise path to maintaining regional healthcare and fulfilling responsibilities to patients. Taking the next step with experts when the 'signs' of management decline begin to appear is the best strategy to avoid simply accepting the situation.