Expansion of Mid-Cap Transactions

「The number of new sell-side engagements was 347, up 20.1% year on year, of which mid-cap engagements—companies with net sales of at least ¥1 billion or profit of at least ¥50 million—rose sharply by 31.0% year on year to 76.」

「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.」

「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.」

「The group has established the Growth Strategy Development Center within the Sales Headquarters as a specialist department for mid-cap companies with net sales of at least ¥1 billion or profit of at least ¥50 million. The department is a cross-functional organisation that holds monthly strategy meetings on mid-cap engagements to develop unlisted mid-cap engagements and follow up on engagements already accepted. The group is strengthening engagements and closings with mid-cap companies and seeking to increase M&A revenue per engagement.」

「In the previous fiscal year, the group established the Growth Strategy Development Center, a team focused on developing companies with high fee levels, namely mid-cap companies with net sales of at least ¥1 billion or profit of at least ¥50 million. The centre specialises in developing mid-cap companies and aims to maintain M&A revenue per engagement, and the group will continue to focus on these efforts.」

「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 April 2023, the group established the Growth Strategy Development Center as a cross-functional organisation within the Sales Headquarters. The centre comprises a team specialising in developing mid-cap companies and a team specialising in considering and supporting the execution of subsidiary sales and business carve-outs by listed companies. For mid-cap companies, the centre provides proposals and execution support to strengthen engagement acceptance and closings, holds strategy meetings to develop mid-cap engagements, and distributes the latest internal information on accepted and closed engagements, including successful cases and event plans, every month.」

「In April 2023, the group established the Growth Strategy Development Center within the Sales Headquarters as a specialist department for mid-cap companies, defined as companies with net sales of at least ¥1 billion or profit of at least ¥50 million. The centre is strengthening engagements and closings with mid-cap companies and seeking to increase M&A revenue per engagement.」

「During the fiscal year under review, seminars and programs aimed at winning mid-cap engagements had been delayed. The group began full-scale activities from the third quarter of the fiscal year under review, and results are beginning to emerge. In the next fiscal year, the group plans to win mid-cap engagements through more advanced programs and maintain or increase the average closing fee.」

「Cumulative first-quarter closed transactions were 293 (transfers and acquisitions counted separately), an increase of 61 transactions, or 26.3%, from 232 in the same period of the previous year.」

「In addition to increasing the share of high-value engagements through the acceptance and closing of mid-cap engagements, the group focused on programs for long-term follow-up with prospective customers and programs centred on the main concept of M&A as a leveraged growth strategy.」

「In addition to its previously proactive sales methods, the Direct Business Division focused on programs for long-term follow-up with prospective customers, enabling it to acquire a new customer segment centred on mid-cap companies.」

「Specifically, to strengthen the acceptance of mid-cap engagements, the group expanded such engagements through M&A with fund companies, growth strategy consulting for mid-sized companies and the establishment of the joint venture described in the following section.」

「Recognising the expansion of mid-cap engagements as a key factor in improving group productivity, the group established a specialist team and is pursuing these efforts actively across the organisation.」