According to the “2025 Individual Enterprise Economic Survey” published by Japan’s Ministry of Internal Affairs and Communications on March 2, 2026, approximately 46.0% of small and medium-sized enterprises (SMEs) in Japan are operated by owners aged 70 or older, representing nearly half of all SMEs in Japan. Of these, around 74.1% have not yet identified a successor. Taiwan and many other countries are facing similar challenges. Effectively utilizing M&A can help address succession-related issues while ensuring the long-term continuity and development of enterprises.

When a company is facing operational difficulties, It can achieve synergies by transferring its business to a company with strong growth momentum, thereby ensuring business continuity and enabling further expansion. On the other hand, buyers can unlock new business opportunities and technologies or achieve diversification through M&A, thereby accelerating business growth while reducing the cost and time required to enter new markets. M&A represents a key strategic growth option for both buyers and sellers.

Competition is intensifying amid rapid globalization, causing development bottlenecks for small and medium-sized enterprises. For companies in Taiwan, Japan, and many other countries, developing an international mindset, crossing national borders, and achieving complementarity and synergies between companies have become key issues. Only in this way can enterprises enhance operational efficiency and competitiveness, enabling them to survive and achieve accelerated growth in an increasingly competitive environment.

Whether one is a founder or a successor, whether something is traditional industry or a new technology, whether a company is a startup or a mature enterprise, any situation may encounter any process involving mergers and acquisitions such as transferring ownership or buying and selling equity in a company. When a company does not have a successor, lacks working capital, is facing a growth bottleneck, wants to sell off nonessential operations, or has an owner that has a change in life ambitions, it can always employ mergers and acquisitions to transform the business and ensure its longevity.