中小企業とM＆A

今回は「中小企業のＭ＆Ａの特徴」について、私見を英語で書いてみました。

【English】

Today, I’m going to focus on the topics of M&A in Small and Medium-Sized Enterprises in Japan.

When it comes to mergers and acquisitions (M&A), the spotlight often shines on the big businesses, featured in the headlines of newspapers.

However, the landscape of M&A in small and medium-sized enterprises (SMEs) shows a distinct set of challenges and motivations.

Unlike big businesses, where M&A strategies are primarily motivated by strategic objectives, M&As in SMEs are often driven by the need to complement resources, particularly in addressing shortages of human resources.

Specifically, the absence of successors is one of the most fundamental motivation toward M&As,which is attributed to the aging population and declining birth rates in our country.

In simpler terms, it’s often the case that SMEs pursue M&As as a matter of necessity, aiming to address the challenge posed by a shortage of skilled personnel or the absence of suitable successors within the company.

In addition, owners of small and medium-sized enterprises (SMEs), those who are selling their businesses, often prioritize maintaining stable employment for their employees over obtaining a high selling price for their company.

Needless to say, the motivations behind M&A in SMEs extend beyond mere survival tactics.

Strategic synergy plays a crucial role in M&A, where the acquisition of resources through M&As compensates for internal deficiencies.

This strategic intent reflects a pragmatic approach towards sustaining and growing the business in increasingly competitive markets.

In conclusion, the realm of M&A in SMEs offers a variety of challenges, opportunities, and motivations that diverge from those in corporate giants. Understanding these nuances is the first step in grasping the uniqueness of M&A in SMEs.