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Business alliance3823THE WHY HOW DO COMPANY,Inc.Information and Communications, Services and Others

Notice Regarding the Business Alliance with Colors Japan Co., Ltd.

The Company will enter into a business alliance with Colors Japan to acquire and revitalize small and medium-sized enterprises facing challenges such as a shortage of successors, as well as businesses including real estate, and to establish a “value succession M&A platform” to be operated by both companies. No agreement has been reached at this time regarding a capital alliance, including an acquisition of shares, and discussions are ongoing.

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Agreements reached under this partnership

Business alliance
3823THE WHY HOW DO COMPANY,Inc.
Alliance partnerColors Japan Co., Ltd.
Details of the alliance
  1. 1

    Assets and businesses covered

  2. 2

    Identification of opportunities, initial investigations and operational improvement

  3. 3

    Acquisition decisions

  4. 4

    Acquisition funding

  5. 5

    Post-acquisition operations and stable income

  6. 6

    Investor participation

  7. 7

    Treatment where Colors Japan is the seller

  8. 8

    Consideration payable to Colors Japan

  9. 9

    Capital Alliances

These are items that the documents state the two companies will work on. The lines above and below represent arrangements between the two companies.

Numerical targets under the alliance

The parties aim to increase the number of companies transferred to new owners, but specific targets and achievement dates are Not disclosed

About the partner
Business DescriptionBusiness revitalization, M&A and business succession support, management of group companies, and other activities
LocationChuo-ku, Osaka (Tokyo head office: Chuo-ku, Tokyo)
Share capital¥51.51 million
Net Sales¥2,435 million (fiscal year ended April 2026)
Operating profit¥635 million (fiscal year ended April 2026)
Impact on Business Performance

The impact of this alliance on the Company’s consolidated results is currently under review. The Company will promptly disclose any matter that should be announced.

Date of board resolution14 October 2026Contract Date15 October 2026 (予定)Alliance start date15 October 2026 (予定)Contract PeriodThe Basic Agreement will remain in effect for one year from the date of execution. Unless either party gives notice that it will not renew the agreement at least 3 months before its expiration, it will automatically renew for successive one-year periods on the same terms. Either company may terminate the agreement by giving 3 months’ notice.
Agreements reached under this partnership
ItemDetails
Name of alliance partnerColors Japan Co., Ltd.
Alliance partner's business activitiesBusiness revitalization, M&A and business succession support, management of group companies, and other activities
Alliance partner's locationChuo-ku, Osaka (Tokyo head office: Chuo-ku, Tokyo)
Alliance partner's capital¥51.51 million
Alliance partner's net sales¥2,435 million (fiscal year ended April 2026)
Alliance partner's operating income¥635 million (fiscal year ended April 2026)
Type of allianceBusiness alliance
Details of the allianceAssets and businesses covered, Identification of opportunities, initial investigations and operational improvement, Acquisition decisions, Acquisition funding, Post-acquisition operations and stable income, Investor participation, Treatment where Colors Japan is the seller, Consideration payable to Colors Japan, Capital Alliances
Contract PeriodThe Basic Agreement will remain in effect for one year from the date of execution. Unless either party gives notice that it will not renew the agreement at least 3 months before its expiration, it will automatically renew for successive one-year periods on the same terms. Either company may terminate the agreement by giving 3 months’ notice.
Numerical targets under the allianceThe parties aim to increase the number of companies transferred to new owners, but specific targets and achievement dates are Not disclosed
Date of board resolution14 October 2026
Contract Date15 October 2026 (予定)
Alliance start date15 October 2026 (予定)
Impact on Business PerformanceThe impact of this alliance on the Company’s consolidated results is currently under review. The Company will promptly disclose any matter that should be announced.
Items this document does not state (9)
Number of shares acquiredAcquisition priceShareholding ratioOverview of the joint ventureOwnership ratioDispatch of directors and officersShareholding PolicyShare Acquisition Date and Payment DateChange in major shareholders

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The Company needed a new framework to increase the number of acquisitions because it faced challenges in independently identifying M&A opportunities, conducting investigations and managing businesses after acquisition. Another reason for the alliance is to combine Colors Japan’s expertise and network in identifying M&A opportunities, conducting initial investigations, business revitalization and PMI with the Company’s governance and compliance framework.

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Notice Regarding the Business Alliance with Colors Japan Co., Ltd. | THE WHY HOW DO COMPANY,Inc. (3823) timely disclosure | Komori