Risk of Lower Revenue and Profit Due to Fewer Large Transactions
First written in FY2019-Q1. 9 of 12 entries say "Mitigated", first in FY2021-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2019: 5 of 9 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The number of deals closed during the consolidated fiscal year under review was 1,061, down 17 from the previous corresponding period. Meanwhile, as a result of continuing to focus on closing mid-cap deals—companies with net sales of at least ¥1 billion or profit of at least ¥50 million—M&A revenue per deal increased by ¥6.1 million from ¥39.6 million in the previous consolidated fiscal year to ¥45.7 million.」
Although the number of deals closed declined, a focus on mid-cap deals lifted M&A revenue per deal to ¥45.7 million, indicating progress in addressing the risk of lower fees per deal. - 2026-04-30MitigatedEarnings
「As a result of continuing to focus on closing mid-cap deals—companies with net sales of at least ¥1 billion or profit of at least ¥50 million—M&A revenue per deal increased by ¥6.1 million from ¥39.6 million in the previous consolidated fiscal year to ¥45.7 million.」
By focusing on mid-cap deals, M&A revenue per deal increased from ¥39.6 million to ¥45.7 million, mitigating the risk of lower closing prices from a decline in large deals. - FY2026-H1MitigatedAnnual report
「The number of engagements closed during the period increased to 488, up from 454 in the same period of the previous year, an increase of 7.5%. M&A revenue per engagement also rose to ¥44.6 million, up from ¥39.6 million in the same period of the previous year, an increase of 12.6%. This was attributable to rigorous management of the entire engagement process from the start of negotiations through closing, as well as the success of measures targeting mid-cap companies.」
Despite the decline in fees per deal, thorough management of deal processes and mid-cap initiatives drove M&A revenue per deal up 12.6% year on year to ¥44.6 million, while the number of deals closed also increased. - FY2025-H1MitigatedAnnual report
「During the current interim consolidated accounting period, the company continued measures to increase the proportion of higher-priced engagements, including continuing to accept large deals and having group companies handle small deals. As a result, M&A revenue per deal rose to ¥39.6 million, while the number of deals closed fell by 42 to 454 compared with the previous interim consolidated accounting period.」
The company increased the proportion of higher-priced deals by accepting large engagements and having group companies handle small deals, raising M&A revenue per deal to ¥39.6 million. The impact of the decline in the number of deals closed remained, but progress was made in addressing the decline in fees per deal. - FY2024MitigatedAnnual report
「In addition to the substantial increase in the number of deals closed noted above, company-wide cross-functional measures by the Growth Strategy Development Center, a specialist department focused on mid-cap deals, defined as deals involving revenue of at least ¥1 billion or profit of at least ¥50 million, proved effective. As a result, the company was able to maintain M&A revenue per deal at ¥37.2 million, roughly the same level as in the previous consolidated fiscal year, compared with ¥37.5 million in the previous year.」
In response to the risk of lower fees per deal, the company maintained revenue per deal at roughly the previous year's level through its mid-cap deal initiatives. - FY2024-Q3MitigatedAnnual report
「This was due in part to the success of company-wide cross-functional initiatives by the Growth Strategy Development Center, a specialist department focused on mid-cap engagements, defined as companies with net sales of at least ¥1 billion or profit of at least ¥50 million. M&A revenue per engagement recovered to ¥37.7 million, roughly in line with the previous year's ¥37.8 million, while the number of closings also remained strong, as described above.」
In response to the decline in fees per deal that had become apparent since FY2023, mid-cap deal measures proved effective, and M&A revenue per deal recovered to ¥37.7 million, roughly in line with the previous year. - FY2024-Q2MitigatedAnnual report
「As shown in the table below, results reached ¥19,171 million, or 108.9% of the earnings forecast, as company-wide cross-functional initiatives led by the Growth Strategy Development Support Center, a specialist department focused on mid-cap deals (net sales of at least ¥1 billion or profit of at least ¥50 million), began to bear fruit and M&A revenue per deal improved.」
The company stated that measures by the Growth Strategy Development Center had been effective in offsetting the impact of the decline in fees per deal that had become apparent through the previous fiscal year, and that M&A revenue per deal was beginning to improve. This indicates progress in addressing risk factors. - FY2024-Q1MaterialisedAnnual report
「These factors were mainly attributable to lower M&A revenue per deal, higher cost of sales associated with the increase in network deals from financial institutions and other sources, and higher various fixed costs resulting from the full-scale resumption of sales activities and the increase in headcount.」
The decrease in M&A revenue per deal actually occurred as a factor behind the decline in revenue and profit in the quarter. Operating profit fell 52.6% year on year, while ordinary profit fell 54.2%. - FY2023MaterialisedAnnual report
「Consolidated ordinary profit was ¥15,472 million, down 8.2% year on year, due to factors including lower fees per deal and higher personnel, travel and transportation, information systems and other costs associated with the increase in headcount.」
The mix of large and mid-sized deals and the decline in fees per deal actually became factors behind the decrease in profit. The company indicated a policy of maintaining and improving fees per deal by resuming and strengthening its mid-cap deal business. - FY2021-Q2MitigatedAnnual report
「On the other hand, in terms of the size of individual completed transactions, we were able to focus on completing mid-sized and large transactions compared with the same period of the previous year. This contributed to an increase in the average transaction fee and resulted in the performance shown in the table below.」
Although the number of deals closed was below the same period of the previous year, the average fee per deal rose as the company focused on mid-sized and large deals, offsetting the impact on performance. - FY2021-Q1MitigatedAnnual report
「On the other hand, in terms of the size of individual completed transactions, we were able to focus on completing mid-sized and large transactions compared with the same period of the previous year. This contributed to an increase in the average transaction fee and resulted in the performance shown below.」
In the past, a decline in large mandates had been a factor behind lower revenue and profit. In the first quarter under review, however, focusing on mid-sized and large transactions increased the average transaction fee and contributed to performance. - FY2019-Q1First statedAnnual report
「As shown in the table below, the Group's results for the cumulative first quarter were revenue of ¥5,964 million, down 8.2% year on year, operating profit of ¥2,581 million, down 28.7%, ordinary profit of ¥2,592 million, down 28.6%, and profit attributable to owners of the parent of ¥2,040 million, down 24.0%. Revenue and profit declined from the same quarter of the previous year, which had recorded the highest quarterly profit ever. The main factors behind the decline in revenue and profit were that the number of completed transactions remained at the same level as in the same quarter of the previous year and that the number of large mandates declined compared with the previous year, which had recorded the highest quarterly profit ever.」
The disclosure states that, while the number of completed transactions remained at the same level as in the same quarter of the previous year, lower revenue and profit actually resulted mainly from a decline in large mandates, including an 8.2% decrease in revenue, a 28.7% decrease in operating profit and a 28.6% decrease in ordinary profit.