Intensifying Competition from New Entrants and Improved Service Quality

「Problems involving inappropriate acquiring companies and low-quality M&A support organizations are increasing.」

「As the number of M&A intermediary firms entering the expanding market for M&A involving unlisted mid-sized and small companies has increased, problems caused by inappropriate M&A advice have unfortunately also occurred. This had become a challenge for the M&A intermediary industry, but the “Guidelines for M&A for Small and Medium Enterprises (Third Edition)” and the “Mission, Code of Ethics and Conduct, and Knowledge and Skills Map for Individual M&A Professionals Serving Small and Medium Enterprises,” published by the Small and Medium Enterprise Agency, strongly require intermediary firms and others to possess multifaceted knowledge, comprehensive skills and high professional ethics. The guidelines have also been applied to all businesses registered under the M&A Support Institution Registration System, promoting their establishment as industry standards and the sound development of the industry.」

「The domestic M&A market for unlisted owner-managed companies and mid-sized and small companies, which are our group’s primary targets, has seen increased entry by major financial institutions that previously targeted M&A transactions involving large companies, as well as by companies from unrelated and peripheral industries. Problems have arisen due to intensifying competition and new entrants offering low-quality services, along with issues such as a decline in the industry’s reputation.」

「Meanwhile, the rapid and successive entry of M&A intermediary firms into the expanding market for M&A involving unlisted mid-sized and small companies has resulted in problems caused by inappropriate M&A advice, creating challenges for the established M&A intermediary industry.」

「In recent years, new entrants to the M&A intermediary market have increased, but the experience and expertise in M&A intermediation that our group has built cannot be imitated overnight, even by financial institutions and others. Our organizational ability to provide high-quality advice and our brand, backed by an extensive track record, are strong differentiators.」

「Although new entrants to the M&A intermediary market continue to increase, the experience and expertise in M&A intermediation that our group has built cannot be imitated overnight, even by financial institutions and others. Our organizational ability to provide high-quality advice and our brand, backed by an extensive track record, are strong differentiators, and we will continue to generate high-quality M&A opportunities.」

「According to the materials published on 22 June 2023 concerning the registered financial advisers and intermediary businesses under the Small and Medium Enterprise Agency’s M&A Support Institution Registration System, 2,298 companies were registered as M&A support institutions, confirming a sharp increase in new entrants.」

「Although competition is increasing with new entrants from major financial institutions, regional banks and new M&A boutiques, we will use our high level of expertise accumulated as an M&A specialist to continue improving quality, create high-quality M&A mandates and contribute to a sustainable Japanese economy.」

「In response to the steady expansion of the market, competition is increasing with new entrants from major financial institutions, regional banks and new M&A boutiques. As an M&A specialist, we will use our high level of expertise and track record accumulated in M&A involving Japanese companies to create high-quality M&A mandates and contribute to a sustainable Japanese economy through M&A.」

「In the Group's M&A brokerage and advisory business, there are no restrictions such as licensing requirements and barriers to entry are not high, so we believe there is a substantial possibility that the risk of increased new entry and intensifying competition will materialize.」

「Although competition is increasing as the market expands, including from major financial institutions, regional banks and new entrants, we will use the high level of expertise and track record accumulated as an M&A specialist in Japan's M&A market to create high-quality M&A mandates and contribute to a sustainable Japanese economy through M&A.」

「Although competition is increasing as the market expands, including from major financial institutions, regional banks and new entrants, we will use the high level of expertise and track record accumulated as an M&A specialist in Japan's M&A market to create high-quality M&A mandates and contribute to a sustainable Japanese economy through M&A.」

「Although competition is increasing as the market expands, including from major financial institutions, regional banks and new entrants, we will use the high level of expertise and track record accumulated as an M&A specialist in Japan's M&A market to create high-quality M&A mandates and contribute to a sustainable Japanese economy through M&A.」

「In the Group's M&A brokerage and advisory business, there are no restrictions such as licensing requirements and barriers to entry are not high, so we believe there is a substantial possibility that the risk of increased new entry and intensifying competition will materialize. Accordingly, while an increase in competitors and improvements in competitors' service quality may invigorate the overall market and contribute to our competitive advantage through the extensive know-how we have accumulated, if the competitive environment intensifies, this may lead to competition for customers and affect the Group's performance.」

「Although competition is increasing with new entrants from major financial institutions, regional banks and other industries, we will use the high level of expertise and track record accumulated as an M&A specialist in Japan's M&A market to create high-quality M&A mandates that contribute to the further development of client businesses.」

「Although competition is increasing with new entrants from major financial institutions, regional banks and other industries, we will use the high level of expertise and track record accumulated as an M&A specialist in Japan's M&A market to create high-quality M&A mandates that contribute to the further development of client businesses.」

「Although competition is increasing with new entrants from major financial institutions, regional banks and other industries, we will use the high level of expertise and track record accumulated as an M&A specialist in Japan's M&A market to create high-quality M&A mandates that contribute to the further development of client businesses.」

「In the M&A brokerage and advisory business operated by the Group, there are no restrictions such as licensing requirements, and barriers to entry are not high. Although numerous participants, ranging from financial institutions to small business operators, operate in Japan's M&A market and the business succession market, which focuses on small and medium-sized companies, we recognize that the Group's extensive experience, track record, in-house expertise and training systems built up over time cannot easily be replicated.」

「Amid these conditions, the business succession issue has become widely recognized as a social problem, drawing attention to the size of the business succession M&A market and increasing the number of businesses entering the M&A market for medium-sized and small companies.」

「The M&A market for medium-sized and small companies, the Group's primary target market, is attracting prominent new entrants from major financial institutions and other industries, and competition for mandates is expected to arise as the number of competitors increases.」

「The number of businesses entering the M&A market for medium-sized and small companies, the Group's primary target market, is increasing, but we believe that the market will expand as competition increases.」

「Although numerous participants, ranging from financial institutions to small business operators, operate in Japan's M&A market and the business succession market, which focuses on small and medium-sized companies, we recognize that the Group's extensive experience, track record, in-house expertise and training systems built up over time cannot easily be replicated. However, if the competitive environment intensifies due to further entry by competitors, improvements in competitors' service quality or other factors, this may affect the Group's performance.」

「However, if the competitive environment intensifies due to further entry by competitors, improvements in competitors' service quality or other factors, this may affect the Group's performance.」

「If the competitive environment intensifies due to further entry by competitors, improvements in competitors' service quality or other factors, this may affect the Group's performance.」