RD Support Partners with JAFCO to Support Business Succession and Technical Transfer in the Healthcare Sector

RD Support Co., Ltd. (Headquarters: Chuo-ku, Tokyo; CEO: Yuki Osawa) has announced a partnership with JAFCO Group Co., Ltd. (Headquarters: Minato-ku, Tokyo; President: Keisuke Miyoshi) to address the challenges of business and technical succession in the healthcare and life sciences industries.

In this partnership, JAFCO's Business Investment Department, which specializes in buyout investments, will lead efforts to identify business succession opportunities and strengthen post-succession management support systems. Meanwhile, RD Support will leverage its specialization in the healthcare and life sciences sector to provide R&D talent acquisition support and facilitate the use of professional human resources, helping companies resolve issues related to technical transfer and the restructuring of R&D systems that often arise during succession.

[Background and Purpose]

There are 500,000 mid-sized companies in Japan, with approximately 50% lacking a successor. In healthcare and life sciences sectors—such as food, health food, cosmetics, pharmaceuticals, and medical devices—an increasing number of companies are facing succession phases as founders and current management age. Many long-standing firms with proprietary technical knowledge and formulation expertise face complex issues regarding the selection of successor management, the definition of R&D roles, and the maintenance of research functions.

In business succession, the ability to transfer 'invisible assets'—such as the rationale behind formulations or development decisions—is critical for maintaining competitiveness. These assets are often dependent on specific individuals and remain undocumented. Companies frequently face the following issues:

- Lack of internal successor candidates. - Unclear roles and selection for research heads. - Dependence on specific talent for formulation insight and quality judgment criteria. - Arbitrary prioritization of development themes. - Lack of clarity on what to maintain or change in a new management structure.

[Overview of Collaboration]

RD Support and JAFCO will accelerate the growth of healthcare and life sciences companies receiving capital from JAFCO by combining their respective strengths:

- RD Support: Specialized support for R&D talent acquisition, sharing-type professional talent utilization, and customized research support. - JAFCO Business Investment Department: Nearly 30 years of buyout investment experience and growth support linked with its venture capital division.

[Future Outlook]

RD Support and JAFCO aim to move business succession beyond 'defensive transfers.' By addressing management, human resources, and technology, they will support companies across Japan in successfully navigating this transition toward their next stage of growth.