#Japan #TRANBI #Business Succession #Tatebayashi

TRANBI Partners with Tatebayashi City

TRANBI, a company that operates a business succession and M&A matching platform, has recently collaborated with Tatebayashi City, the Tatebayashi Chamber of Commerce and the Tatebayashi Shinkin Bank to strengthen support for business succession in the area. By formalizing this agreement, the partners aim to enhance the effectiveness of the ongoing efforts in business succession and contribute to the sustainable development of the local economy.

Challenges of Aging Entrepreneurs

As Japan approaches the critical issue of the “2025 Problem,” where one in five citizens will be classified as elderly (over 75), the problems surrounding the succession of businesses have become more urgent. In Gunma Prefecture, the average age of company presidents has risen notably since 1990, reaching an all-time high of 60.9 years in 2024, surpassing the national average of 60.7 years. The number of entrepreneurs aged 60 and above now represents over 51.6% of the total, with existing studies indicating a staggering 45% absence of successors. Alarmingly, 80% of these individuals are not considering third-party succession through M&A.

In this environment, national expectations regarding local government involvement in business succession are increasing. The local governments are expected to facilitate partnerships between various stakeholders, acting as a “hub” and fostering awareness of business succession among business owners. Tatebayashi City has been actively addressing local challenges for some time, prior to the current trends, through strong cooperative relationships across various sectors. However, with the 2025 deadline approaching, it has become imperative to address business succession challenges head-on.

Roles of the Partnering Organizations

The collaborative agreement includes several key points of focus:
1. Development of specialized personnel to assist small and medium enterprises with business succession.
2. Raising awareness and enhancing understanding of succession options beyond family and employees.
3. Creating matching opportunities for businesses looking to transition to third-party successors.
4. Additional support initiatives pertaining to business succession in Tatebayashi City.

TRANBI has been operating Japan’s first business succession and M&A platform since its inception and has seen its user base exceed 200,000. By leveraging this extensive network, they aim to connect potential successors nationwide with businesses in Tatebayashi that are struggling to find successors. The platform allows for both anonymous and real-name listings, with a special focus on addressing local needs.

Planned Initiatives

The partnership outlines a phased approach to addressing business succession issues in the locality:
1. Phase One: Host events and seminars to promote awareness of business succession.
2. Phase Two: Identify specific business succession needs and provide support for transitioning businesses.
3. Phase Three: Assist businesses in finding successors using platforms like TRANBI.
4. Phase Four: Provide support for closing business succession deals.
5. Phase Five: Offer ongoing support to successors during the transition process.

Community Impact and Leadership Comments

The collaborative effort aims to address the pressing issue of business succession head-on. According to officials from the Tatebayashi City Economic Division, over 60% of local entrepreneurs are over the age of 60 with a growing absence of successors. The longstanding tradition of viewing business succession primarily as passing down to children has also contributed to rising closure rates among local businesses due to a lack of successors.

The commitment from the Tatebayashi Chamber of Commerce to actively support businesses with tools such as expert seminars and networking opportunities complements the involvement of TRANBI, which can enhance the reach and effectiveness of these efforts. The Tatebayashi Shinkin Bank also aims to bolster their support structure as they approach their 100th anniversary.

Conclusion

As Tatebayashi City embarks on this critical journey of addressing business succession, the intricacies of collaboration between TRANBI, the Chamber of Commerce, and the Shinkin Bank signal a progressive and unified approach to sustaining the local economy and ensuring that businesses continue to thrive for generations to come.

For further information about TRANBI and its services, visit TRANBI's Official Website.