What is the purpose of executing M&A, and what effects can be expected?
M&A can be useful for solving various management challenges, but it might be particularly effective in the following four cases.
Accelerating Growth Strategies – To break the current situation and achieve growth with a sense of speed
When considering M&A to achieve your company’s growth strategies, it is important to understand that it is not about selling or buying A company by using M&A method but rather, “who to partner with”. By “buying a company through M&A,” new challenges can be pursued with a sense of speed while minimizing the costs and risks of new businesses. On the other hand, by “selling a company through M&A,” it is possible to reorganize inefficient and allocated resources to core businesses within the group through “selection and concentration”, leverage the management resources of the acquiring company to grow to a higher stage.
Understanding the client’s strategy, selecting and proposing a suitable partner that can maximize synergy effects while executing matching with the right partner to meet needs, is considered our mission as M&A professionals. Meet our professionals.
Solving Succession Issues – To pursue the best options
To ensure that succession to the next generation does not become an “unfortunate inheritance”
In the past, family succession was mainstream when it came to business succession. However, if succession is carried out without considering the will or ability of the next generation, it may lead to “unfortunate inheritance.” In recent years, many business owners wish for their children to freely pursue their own paths, resulting in a significant decrease in the proportion of family succession.
There are difficult issues to solve with succession to employees
In cases where there are no family members to take over, some owners desire to pass on their businesses to trusted employee. However, while it may be possible to transfer management rights to a trusted employee, preparing for share acquisition funding and guaranteeing debts is not easy. An employed president cannot operate the business flexibly.
Our mission is to solve the “succession issues” faced by medium and small-sized enterprise owners through friendly M&A, ensuring the “survival” of companies and aiming for further development.
Alleviating Industry Uncertainties – To turn the wave of industry reorganization into an opportunity for leap
Industry reorganization is an opportunity
In industries undergoing transformation, many may have vague anxieties about the future. Indeed, if you simply watch the large waves of change without taking action, there is a risk of being swallowed by them. However, this does not necessarily mean a crisis. Significant waves that change the industry structure can also provide opportunities to overtake competitors in one fell swoop.
M&A for capitalizing on opportunities
Various phenomena are occurring in different industries in the rapidly evolving market, indicating an impending era of major reorganization. It is no longer just about M&A aimed at expanding scale or winning against competitors; the era of “industry reorganization M&A,” which aims to break away from the past and create new business models or progress to the next stage, has already arrived and will increasingly spread across various industries.
Overseas Expansion and Withdrawal – To respond timely to trends in overseas markets and businesses
Speed is essential in overseas expansion and withdrawal
In recent years, it has become common for companies to expand overseas to have a global market or production base. Conversely, there are cases where companies, having expanded overseas, are compelled to withdraw or change plans rapidly due to changes in circumstances. In either case, missing the timing is not permissible, and speed in decision-making and execution is essential.
Activating cross-border M&A across borders
To support M&A for smooth success in countries with different legal systems (foreign investment regulations, company law, labor law, tax law), business practices, and business environments, our cross-border M&A teams provide comprehensive professional services by collaborating with experienced lawyers, accountants, tax advisors, and external experts familiar with foreign markets, leading to successful cross-border M&A.
For those who wish to learn more about solutions for challenges, please contact us for a free consultation.
