[Matching] Platform connecting those wishing to transfer or acquire medical corporation status: a roadmap to success

In recent years, business succession of medical corporations has become an urgent issue against the backdrop of a declining birthrate, aging population, and a lack of successors. At the same time, for medical corporations seeking to expand their medical business or expand into new areas, acquiring an existing medical corporation status can be an efficient option.

In this article, we provide a thorough explanation of the current situation, advantages and disadvantages, the flow of procedures, and how we can support your business succession for those interested in transferring or acquiring a medical corporation status.

1. Current status and background of medical juridical personality transfer/acquisition

The medical corporation system is a non-profit corporation established to fulfill its role as a leader in community healthcare. However, with the changing times, more and more cases are becoming difficult to continue such a system for various reasons, such as the aging of the founder, lack of successors, and changes in the business environment.

Meanwhile, the environment surrounding healthcare is constantly changing, and medical corporations are required to further develop and change with the introduction of new medical technologies, the diversification of patient needs, and the promotion of comprehensive community care systems. Under these circumstances, there is a growing movement toward restructuring and expanding business by effectively utilizing existing medical corporation status.

2. Advantages and disadvantages of transferring or acquiring medical juridical personality

Transferring or acquiring medical juridical personality may have the following advantages and disadvantages.

2.1. Merits and demerits of the transferor (chairman of the medical corporation)

[Merits

– Smooth business succession: Even in the absence of a successor, a third party can take over the medical business that has been developed over many years and continue contributing to local medical services.

– Securing the founder’s profit: The transfer consideration is based on the valuation of the corporate entity.

– Retention of employees: Depending on the transferee, existing employees may be able to retain their jobs.

– Reduction of emotional burden: You can start a new life, free from successor problems and management difficulties.

Disadvantages

– Selection of transferee: It may take time and effort to find a reliable transferee.

– Negotiation of transfer terms: Negotiation of transfer price and conditions may be difficult. 2.

2.2 Advantages and disadvantages for the transferee (individual clinic practitioner or general business owner)

[Advantages

– Simplified incorporation procedures: Significantly less time and effort than establishing a new medical corporation.

– Utilization of existing assets and know-how: Medical facilities, medical equipment, licenses and permits can be taken over.

– Early business development: Smooth business development is possible by utilizing the existing foundation.

Disadvantages

– Importance of Due Diligence: Thorough investigation of the financial, legal, and operational status of the medical corporation to be transferred is required.

– Contingent liability succession risk: There is a possibility of assuming off-the-books liabilities, litigation risk, etc.

– Assessing the appropriateness of the transfer price: It is necessary to carefully assess with experts whether the transfer price is appropriate.

3. Procedural flow for transfer/acquisition of medical juridical personality

The transfer/acquisition of medical juridical personality requires complex procedures and permission from the regulatory authorities. The general flow of the process is as follows: 1.

1. matching: collecting information on the transferee and transferee, and finding a partner that matches the conditions (supported by our platform). (The platform provides support.) 2.

(2) Basic Agreement: Agree on the basic terms and conditions of the transfer/acquisition (transfer price, scope of transfer, timeline, etc.).

Due diligence: We conduct a detailed investigation of the financial, legal, and operational conditions of the transferring medical corporation. 4.

Conclusion of transfer agreement: Based on the results of the due diligence, a final transfer agreement is concluded. 5.

5. application for approval from the prefectural governor: Approval from the prefectural governor must be obtained for any changes to the articles of incorporation of the medical corporation (e.g., changes to the chairman of the board of directors, minutes of the general meeting of members, etc.).

6. registration procedures: Registration of changes in the chairman of the board of directors, officers, etc. of the medical corporation.

Completion of business succession: All procedures are completed, and the transferee begins business as a medical corporation.

Important Note: The above is a general flow chart, and the procedures and required documents may vary depending on the individual case. Please be sure to consult with an experienced professional before proceeding.

4. How to use our platform: Smooth matching and negotiation support

Our platform is a highly specialized matching platform that aims to “connect people who wish to transfer or acquire medical corporation status. We provide the following functions and support so that both the transferor and the transferee can proceed with business succession efficiently and with peace of mind.

4.1. Extensive experience and unique information network

– Detailed corporate information: Detailed information on the location, financial status (in part), and desired transfer and acquisition conditions of the medical corporation is available.

– Unique information network: Based on our long-accumulated experience, we are able to introduce you to potential transferees and acquirers in a variety of regions, sizes, and desired conditions.

– Anonymous disclosure of information: Information can be disclosed without disclosing your name or company name, allowing you to search for a partner while protecting your privacy.

4.2. Professional Support System

– Business succession consultants: Experts with expertise in business succession for medical corporations provide comprehensive support, from matching to contract signing and administrative procedures.

– Legal and financial advisors: Professional experts provide advice on legal and financial aspects.

– Valuation Calculation Service: We provide services to calculate the appropriate valuation of medical corporations.

4.3. Matching Case Studies (Selected)

– Case 1: Clinic with no successor (internal medicine and pediatrics)

o Transferor: Chairman of a medical corporation in a regional city (in his 70s)

o Receiver: Medical corporation operating multiple clinics in the city center

o Matching point: The buyer, who emphasizes contribution to regional medical care, and the seller, who wants to leverage longstanding achievements match.

– Case 2: Hospital aiming to expand business (orthopedics)

o Seller: Local medical corporation with deteriorating business conditions

o Purchaser: Large-scale medical corporation providing acute care in the neighboring area

o Matching point: Buyer with expertise in acute care determined that it could contribute to the reconstruction of local medical care.

– Case 3: Company considering new entry (nursing care business)

o Transferee: Medical corporation that was considering conversion to the nursing care business

o Transferee: Nursing care provider that was considering entering the medical field

o Matching point: Judged to be able to smoothly enter the medical business by utilizing its existing medical corporation status.

5. Key points for successful transfer/acquisition of medical juridical personality

The transfer/acquisition of a medical juridical personality is a major decision in one’s life and should be proceeded with caution. To ensure success, be aware of the following points.

– Clear objectives: It is important to clarify why you want to transfer or acquire your medical juridical personality.

– Gather information and consult an expert: Gather sufficient information on relevant laws and regulations, procedures, market trends, etc., and be sure to consult an expert.

– Sincere communication with the other party: It is important for both the transferor and the transferee to communicate in good faith and build a relationship of trust.

– Long-term perspective: Consider the transfer or acquisition from a long-term perspective, not just short-term profit.

– Thorough due diligence: It is essential for the transferee to thoroughly identify the financial information of the medical corporation to be transferred.

6. Future Prospects: Toward Smoother Business Successions

As the birthrate continues to decline and the population ages, the need for business successions of medical corporations is expected to continue to grow. We are committed to further improving our services to meet the various needs of our clients. We believe that the transfer and acquisition of medical corporation status will enhance the sustainability of local healthcare and contribute to the development of new medical services.

7. Conclusion: Why don’t you take the first step?

Transferring or acquiring a medical corporation status is not an easy path. However, with the right information and professional support, it can certainly lead to success.

If you are interested in transferring or acquiring a medical corporation status, why not register on our platform and start gathering information?

Our professional team will do its best to support your business succession. Let’s create the future of healthcare together.