- September 5, 2023
- Posted by: Aki Kojima
- Category: micro M&A
Certain types of companies are popular in inquiries for a business’s sale.
Some businesses require permits and licenses, and that’s the reason for their popularity.
We will introduce three of them in this issue.
Please refer to this information to expand or start these businesses.
Purpose of obtaining a permit
Nursing Care Business
The nursing care business is one of the most frequently transferred businesses.
This is because Japan’s national and local governments set the criteria for their assignees in the nursing care business. A sole proprietorship is not allowed to operate a nursing care business.
If you choose a non-profit entity, it will be a social welfare corporation, medical corporation, or non-profit organization. If it is a for-profit entity, it is a joint stock company or a limited liability company.
The entity needs a license and approval to start a nursing care business.
There are many complicated procedures, but here is a partial list of what you must do when starting a business.
- Prepare a business plan
- Prepare facilities for the nursing care business
- Have the manager take pre-designation training
- Apply for designation to the local government
They alone take a lot of time.
In addition, it is necessary to have other qualified people in place. Below are the examples.
- Social worker
- Care worker
- Care manager
- Service provider manager
- Care staff
It takes time as well as money to prepare these things.
Naturally, equipment is also necessary.
From an overall assessment, people have concluded that purchasing the entire nursing care business would be a smoother way to start the business.
Therefore, the nursing care business is a famous transferred example.
The transportation business is another well-known example being sold.
This business cannot be opened without a transportation license.
Here is a summary of what you need to do as well.
- Prepare an application for transportation business authorization and collect the necessary documents.
- Apply to the Transportation Branch Office for approval
- Examination period (4-5 months)
- Submission of pre-commencement confirmation of transportation
This section shows that the period to obtain a license is 4-5 months.
Instead of being able to open a business as an individual, it takes substantially longer to obtain a permit.
I hope this has given you a rough idea of opening a transport business.
In addition, there are also needs for equipment and human requirements such as an operation manager.
As a result, it is often decided that taking a business transfer is better than opening a business from scratch.
Temporary Staffing Business
Temporary staffing business also requires a license.
Since it deals with people, it is a prerequisite that you have financial resources.
An individual can do this, but the standard asset amount described below is based on the tax return.
It is also difficult to obtain permits and licenses.
Let’s look at the basics.
- Standard assets (assets minus liabilities) must be at least 20 million yen for each office (of which at least 15 million yen must be cash)
- Office space of 20m3 or more
- Qualified dispatch supervisor (general employment experience + dispatch supervisor training)
- Prepare an education and training system for dispatched workers (career improvement consulting, etc.)
In addition to the Labor Bureau’s document review, an on-site inspection is conducted to confirm office requirements. As a result, it takes about two months from the time of permit application.
While it is difficult to open a new temporary staffing company, many companies face a labor shortage and a certain amount of demand.
That is why some take a business transfer and start a temporary staffing business.
Purpose of hiring workforce
Business transfers are also used to compensate for the shortage of human resources.
An example is the construction industry.
This industry tends to be unpopular because of its physical rigor and lack of weekends and other holidays.
In these industries, there is a movement to secure employees by buying businesses and companies rather than hiring new ones.
The reasons for this are the same in the industries we have mentioned.
It is the same in the nursing care, transportation, and temporary staffing industries.
In many industries, acquisitions for human resources are also on the rise.
The following is a summary of the objectives of the acquiring party in a business transfer.
It is possible to sell and terminate a business, even on a small scale.
Let’s check it out as one of the ways to meet your objectives.