Yang Jae

News Highlights

Yang Jae-woon Hospital in South Korea closed shortly after resuming operations. According to the news highlights, closing down incurs costs of several million yen, while business succession typically involves compensation ranging from 0.5 to 1.5 times the annual revenue. The succession period for clinics without inpatient beds is generally 4 to 10 months, and consulting before closure can facilitate the continuation of staff employment and patient care.

M&A Medical Editorial Department’s Perspective

The case of Yang Jae-woon Hospital suggests how significant the costs and impact on stakeholders can be when choosing to “close down” due to difficulties in continuing operations. While closing down is said to incur costs in the millions of yen, this is not an excessive figure considering expenses such as restoration costs, outstanding payments, and dissolution procedure fees. In contrast, business succession offers the potential to receive compensation ranging from 0.5 to 1.5 times the annual revenue. This demonstrates that buyers exist who value the “continuity of business” – including assets, know-how, and most importantly, staff and patients – to the extent that they can recover closure costs and more. Considering that the succession period for clinics without inpatient beds is 4 to 10 months, there should have been ample time to consider M&A as an option before deciding to close. Early consultation for business succession enables a smooth transition to the “next chapter” rather than a “final curtain call” for the hospital.

Points Highlighted by This News

• Clear economic comparison between closure costs (several million yen) and business succession compensation (0.5-1.5 times annual revenue).
• Specific mention of the 4-10 month succession period for clinics without inpatient beds.
• Possibility of considering staff and patients (employment and continued care) through consultation before closure.
• The case of Yang Jae-woon Hospital suggests alternatives to closure when business continuity becomes difficult.

Practical Questions Arising from This News

• What were the reasons for Yang Jae-woon Hospital’s closure?
• What is the breakdown of the several million yen cost associated with the closure?
• What specific types of medical institutions could have potentially taken over Yang Jae-woon Hospital’s business?

If You Feel “Should I Consult Too?”

Before considering the option of “closure,” we strongly recommend exploring the possibility of business succession first. Closure incurs business closure costs, but with business succession, you may be able to receive compensation that exceeds these costs. Furthermore, considerations such as continuing staff employment and patient care, which become difficult with closure, are more easily realized through M&A. Please consult with an expert first.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics with a complete success fee basis, as an M&A support institution certified by the Small and Medium Enterprise Agency. Consultations are accepted with strict confidentiality. Free consultations here