Dental Industry Bankruptcies Hit 20

Structural Challenges in the Dental Industry Revealed by the Highest Number of Bankruptcies in 20 Years

According to a report by Tokyo Shoko Research, the number of bankruptcies in the "dental-related" sector reached 39 cases in fiscal year 2023, the highest in the past 20 years. This highlights not just individual business failures, but structural challenges facing the entire dental industry. Factors such as stagnant revenue growth due to medical fee revisions, increased costs from soaring prices and rising labor expenses, and the financial burden of investing in advanced medical equipment are all contributing. This situation indicates that small clinics and individually-owned practices are particularly on the brink of financial crisis.

Implications from an M&A and Business Succession Perspective

This news underscores the importance of"Early Decision-Making and Consultation with Experts"when considering medical M&A and business succession. By exploring business succession before falling into insolvency or when signs of financial deterioration begin to appear, it becomes possible to maximize the sale price, settle loans and personal guarantees with financial institutions, and most importantly, achieve a more favorable succession that ensures the continuity of regional healthcare and maintains staff employment. The high number of bankruptcies, in particular, suggests that medical institutions facing issues such as a lack of successors or financial difficulties may find it harder to secure advantageous terms in the sale market.

Concrete insights for healthcare institution executives and successors

If your institution is also reviewing recent changes in profitability and future management plans, and you are experiencing future anxieties, then"Now is the perfect time to consult with experts."This is not only to avoid the worst-case scenario of bankruptcy but also to find options to connect the legacy of your medical institution, built through your efforts, to the future in a new form through a smooth business succession. We encourage you to consider utilizing specialized organizations that offer anonymous and free consultations.