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  5. Expansion of the Matching Support Database for Third Party Business Succession (M&A) by the Support Centers for Smooth Business Succession

Expansion of the Matching Support Database for Third Party Business Succession (M&A) by the Support Centers for Smooth Business Succession

August 16, 2019

The Small and Medium Enterprise Agency (SMEA) and the Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (SME Support, JAPAN) will renew the non-name database (NNDB). This database compiles consultations made with the Support Centers for Smooth Business Succession nationwide, and enables posting of information on business succession with difficulties held by private financial institutions and intermediaries (hereinafter referred to as “registered agencies”) as well as enable participation of public organizations, such as the Japan Finance Corporation, with the aim of expanding and enhancing the functions of the business-succession matching support database.

1. Outline of the Support Centers for Smooth Business Succession

In FY2011, the Small and Medium Enterprise Agency (SMEA) under METI began a project for supporting SMEs in business succession, in which SMEA provides SMEs with opportunities for receiving consultation or advice concerning M&A, aiming to support businesses with no successor in succeeding their business to a third party. Since then, the SMEA has established Support Centers for Smooth Business Succession (hereinafter referred to as the “centers”) in all 47 prefectures across Japan by the end of FY2016. These centers have been providing SMEs and small enterprises that have no successors with business-succession matching opportunities with businesses that wish to become a successor to such SMEs’ business. Between FY2011 and today, the number of contracts concluded under this project came to about 2,700.

2. Outline of the NNDB

Business succession is a serious challenge across Japan, and it is necessary to increase chances for successful matching through offering support covering broader areas. Therefore, the SMEA and SME Support, Japan, created the NNDB in FY2016 that compiles consultations made with the centers, for which consent has been obtained from consulters, and makes them accessible to other centers and agencies registered with the centers nationwide, and have been offering support for business-succession matching.

3.Renewal of the NNDB

From the perspective of strengthening matching support services covering broader areas and involving more registered agencies, the NNDB will be renewed. At present, the NNDB only posts information on business succession with difficulties held by the centers, but the coming renewal will enable posting of such information held by registered agencies as well. It willexpand the scope of disclosure to include the Japan Finance Corporation and other public organizations, and also facilitate registration of information held by these public organizations. Through this renewal, the SMEA and SME Support, Japan, will further promote business-succession matching across different prefectures and by registered agencies and facilitate smooth business succession of SMEs and small enterprises.

4.Registration of agencies

In addition to the above, the centers nationwide will encourage registration of agencies, etc. to further increase information to be posted on the NNDB.

5.Operation of the NNDB

The renewal will be completed and the renewed NNDB will start operation on September 2, 2019.

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Division in Charge

Corporate Finance and Tax Affairs Division, Small and Medium Enterprise Agency