Japan has seen a rise in issues related to mergers and acquisitions involving small and medium-sized enterprises, often due to deceptive buyers that fail to honor contracts.

As M&As gain attention as a viable option for business succession, the Small and Medium Enterprise Agency, alongside industry groups, has introduced countermeasures, including updated guidelines, to raise awareness and safeguard companies.

According to M&A research firm Recofdata, 702 publicly disclosed M&A deals involving SMEs for succession purposes took place in 2023, nearly triple the number from a decade ago.