Bankruptcies of Dental Clinics and Dental Laboratories Hit a 20

Record High Bankruptcies for Dental Clinics and Dental Laboratories

This news highlights the severe business environment in the dental industry in recent years. The record number of bankruptcies in the past 20 years is thought to be a result of a combination of factors, including increased investment burdens for the latest equipment due to diversifying patient needs for treatments like orthodontics and implants, coupled with continuous revisions to medical fees and rising costs for materials and labor. Particularly, investments in high-cost medical equipment can pose significant management risks for small and medium-sized dental clinics, considering their depreciation periods and the rapid pace of technological innovation.

From the perspective of medical M&A and business succession, this situation strongly suggests the importance of "considering early business succession and M&A." To avoid the worst-case scenario of bankruptcy and maximize business value, it is essential to consider succession to the next generation or transfer to a third party before management deteriorates or the business becomes insolvent. Especially in cases like dental clinics, where aspects like the dentist's individual skills and network are highly influential, closure not only signifies the end of a business but also requires consideration of the impact on regional healthcare, including long-standing patient relationships and staff employment.

For managers of medical institutions, particularly those struggling with a lack of successors, this news serves as a warning against complacency, urging them to "adapt to change" and reaffirm the necessity of "planned business succession." Objectively analyzing one's own clinic's financial status and collaborating with experts to consider options beyond closure, such as business succession through M&A, will pave the way for a sustainable future.