According to the “Individual Enterprise Economic Survey” conducted by Japan’s Ministry of Internal Affairs and Communications, the number of executives over the age of 70 running small and medium-sized enterprises in Japan is expected to reach 2.45 million by 2025, of which more than half––1.27 million––will lack a successor. Taiwan and most other countries also face the same problem. Mergers and acquisitions can effectively solve issues with succession, safeguarding the future of a company.

A company experiencing performance setbacks can achieve synergy with another company that has growth momentum, continuing the business and opening new avenues of expansion. On the other hand, through acquisitions, buyers can not only unlock new business opportunities and technologies, achieve diversification, or accelerate business growth, but they can also reduce the cost and time required to enter new markets. Whether they are buyers or sellers, all companies can benefit from mergers and acquisitions as a strategy to grow their businesses.

Competition is increasing day by day amid rapid globalization, presenting a bottleneck that hinders the development of small and medium-sized enterprises. Thinking beyond the borders of their countries and synergizing with overseas companies is an imperative step for companies in Taiwan, Japan, and most other countries to take to improve operating efficiency, increase their ability to compete, and ensure the continued survival and growth of the company.

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.