[Announcement] Nihon Keiei to Host Luncheon Seminar at the 28th Annual Meeting of the Japan Society for Healthcare Management

News Highlights

Nihon Keiei will hold a luncheon seminar at the 28th Annual Meeting of the Japan Society for Healthcare Management on April 19th. This seminar is expected to discuss solutions for the sustainable development of medical institutions. In particular, it aims to emphasize the value of third-party succession as an alternative to closure or廃業 (going out of business) for medical institutions facing succession issues, and is expected to recommend early preparation in 5-10 year increments starting around age 60 for chairpersons and directors, as well as the utilization of specialized advisors for the healthcare industry.

M&A Medical Editorial Department’s Perspective

The announcement by Nihon Keiei of a luncheon seminar at the Japan Society for Healthcare Management should be viewed not merely as a conference presentation, but as a strong message to healthcare executives. The topic, “Options for Succession Issues: The Value of Choosing Third-Party Succession Over Closure or Going Out of Business,” directly addresses a pressing concern for many medical institutions. With an aging healthcare workforce, cases where intra-family succession is difficult are steadily increasing. Consequently, third-party succession through M&A emerges as a realistic solution, but its execution necessitates a timeframe of “preparation starting around age 60 over a 5-10 year span.” This is a natural requirement, considering not only the time needed to find a buyer but also for financial and legal due diligence, assessment of medical functions, and the development of a smooth handover plan. The recommendation to utilize advisors specialized in the healthcare industry also suggests that without a third party possessing specialized knowledge and networks, it would be difficult to successfully navigate this complex process. This seminar will likely serve as a catalyst for concrete action for executives seriously considering the sustainability of their medical institutions.

Key Discussion Points from This News

• The significance of Nihon Keiei holding a seminar on third-party succession at the Healthcare Management Society meeting
• Appealing the importance of M&A as an option other than closure or going out of business for medical institutions facing a lack of successors
• Emphasizing the necessity for chairpersons and directors to start early preparation in 10-year increments from around age 60
• Suggesting the need for specialized support by recommending the use of advisors specialized in the healthcare industry

Practical Questions Arising from This News

• When considering third-party succession, what specific types of medical institutions can be considered candidates?
• If starting succession preparations around age 60, what specific steps should be taken?
• What kind of specific support can advisors specialized in the healthcare industry provide?

If You Feel “Should I Consult Too?”

A chairperson or director is over 60 years old and is struggling with a lack of successors. Intra-family succession is difficult, and closure is being considered, but concerns remain about the impact on regional medical care and employee employment. In such a situation, it is well worth consulting with specialists about the option of third-party succession. Especially if aiming for business continuity that leverages long-standing regional achievements and expertise, it is crucial to consult with M&A intermediaries or specialized advisors early on to consider the optimal scheme tailored to your institution’s situation.

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