The rapid expansion of Japan's small and medium-sized enterprise (SME) M&A market is drawing sharp criticism for allegedly sidelining the wishes of founding families.
As demographic shifts accelerate the need for business succession, the volume of deals has surged, but a new investigation suggests that sellers are increasingly left behind in the process.
A recent report by Diamond highlights a growing pattern where the emotional and strategic interests of selling founders are overlooked in favor of transactional efficiency.
The publication's new book, titled 'Shakui' (Corporate Cannibalism), details cases where founders felt betrayed by the very intermediaries meant to facilitate their exit.
One founder reportedly described the leading M&A broker, Japan M&A Center, as being driven solely by financial gain, leaving the original owners with regret and a sense of loss.
This scrutiny comes at a critical juncture for the Japanese economy.