Succession: A Shared Challenge Between Japan and Thailand

Connecting the Future, Creating Value

Succession: A Shared Challenge Between Japan and Thailand

At Nihon M&A Center Holdings, our purpose is clear:

“To connect hopes and dreams for the best M&A experience in Japan and then the world.”

Many companies face tough challenges in management succession. Others struggle to realize organic growth. Our mission is to connect both parties and support them to thrive and prosper through M&A. We work to sustain traditional brands, protect unique technologies, and revive regional communities.

Today, as we look at the demographic outlook for Thailand, the importance of this mission has never been more urgent.

The Demographic Reality: A Crossing of Paths
Thailand’s demographic outlook has reached a critical turning point that mirrors the challenges Japan has navigated for decades. As shown in recent registration data, the gap between births and deaths in Thailand has closed rapidly:

  • Declining Births: Annual births plummeted from 736,352 in 2015 to just 462,240 in 2024.
  • Rising Mortality: Deaths surpassed births for the first time in 2021.
  • A Shrinking Workforce: With a fertility rate (TFR) of 1.0—now lower than Japan’s 1.2—Thailand is entering an era of ultra-low fertility

 

Why Thai Owners are Choosing M&A
This shift isn’t just a statistic; it is fundamentally changing the SME landscape. A shrinking talent pool makes finding an internal successor more difficult than ever.

Recent internal data from Nihon M&A Center Thailand (based on 118 local companies) highlights this reality. When looking at why owners explore M&A, the “Succession Gap” is the primary driver:

  • Retirement (Exit): 33.1% of owners are looking to secure their personal future.
  • No Successor: 11.0% specifically cite the lack of a next-generation leader.
  • Strategic Growth: 27.1% are seeking synergies to remain competitive in a shrinking market.

Securing Your Legacy
In an aging society, M&A is no longer just a financial transaction; it is a vital tool for business continuity. It allows owners to protect the legacy they have built over decades while ensuring employees have a stable future under new growth-oriented leadership.

 

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