- August 11, 2023
- Posted by: Aki Kojima
- Category: micro M&A
Hello readers! Welcome back to our blog. Today, we’re diving deep into a fascinating trend taking Japan by storm: the rise of small-scale Mergers and Acquisitions (M&As). Let’s explore the reasons behind this surge and what it means for the future of Japanese businesses.
The Current Landscape of Small-Scale M&As
In recent years, there’s been a noticeable uptick in M&A activities among Japan’s small and medium-sized enterprises (SMEs). This isn’t just a random occurrence. Factors like the aging population of business owners without successors and the business environment shifts due to the COVID-19 pandemic have made M&As attractive for many companies.
SMEs Joining the M&A Bandwagon
Historically, M&As were the domain of large corporations. However, the tides are changing. SMEs are now actively participating in M&As. While high brokerage fees have deterred many SMEs, firms like ours are stepping up, offering competitive rates to support and encourage growth in the small-scale M&A market.
Data Speaks Volumes
Public data showcases the increasing trend of M&As spearheaded by SMEs. Research from the Small and Medium Enterprise Agency indicates that most M&A transfer prices are below 20 million yen. Interestingly, most companies on the buying side are SMEs with capital of less than 100 million yen. This data paints a promising picture for the future of the small-scale M&A market in Japan.
Driving Factors Behind the Trend
One of the most pressing challenges facing SMEs in Japan is the shortage of successors. This issue isn’t just a business concern; it’s a significant economic challenge for Japan. Even thriving companies are at risk if they can’t find a successor. M&As offer a solution, enabling business succession, expansion, and the birth of new business opportunities.
A Bright Future for Small-Scale M&As
The small-scale M&A market in Japan is flourishing. The increasing number of M&As, especially in the small-scale sector, is driven by the need for successors, the desire to stand out from competitors, and the pursuit of new business avenues.
Our Commitment to Small-Scale M&As
Our firm is at the forefront of supporting small-scale M&As. We’re here to guide and assist businesses through this journey. Contact us if you’re considering an M&A or just curious about the process. Together, we can chart a successful path in the dynamic world of small-scale M&As.
Thank you for tuning in to our blog today! If you want to learn more or need assistance, search for “10musubi” on Google and connect with us. We’re here to help. Until our next post, stay informed and stay ahead!