Expanding the M&A Brokerage Business and Accelerating Closings

「The time to closing was shortened.」

「In light of the fact that delegating authority over mandate management to division heads caused greater-than-expected disparities in mandate progress between divisions and lowered the overall completion rate, we will resume a cross-business-division system for managing the progress of all mandates, which will operate through the fiscal year ending March 2025. We will also introduce a double-check system under which the heads and deputy heads of business divisions review mandate progress, and will work to improve its accuracy.」

「During the interim consolidated accounting period, we focused on developing sellers and buyers and completing transactions, while working under the new training system and new KPI management method to develop a strong workforce with practical skills and the ability to contribute immediately. Improvements in the practical capabilities of consultants who completed the new training system enabled transaction completions to progress broadly as expected.」

「During the current consolidated fiscal year, we focused on developing sellers and buyers and completing transactions, while working to establish the new training system and new KPI management method and to develop a strong workforce with practical skills and the ability to contribute immediately. Under the training system introduced in October 2023, some practical training took longer than expected, causing transaction completions to be somewhat delayed during the first-quarter consolidated accounting period. Subsequently, as consultant training progressed steadily, transaction completions proceeded broadly as expected from the second quarter onward.」

「During the interim consolidated accounting period, we focused on developing sellers and buyers and completing transactions, while working to establish the new training system and new KPI management method and to develop a strong workforce with practical skills and the ability to contribute immediately. Under the training system introduced in October 2023, transaction completions had been somewhat delayed because some practical training took longer than expected. Subsequently, as consultant training progressed steadily, transaction completions have proceeded steadily from the second quarter onward.」

「During the cumulative third-quarter consolidated period, with a view to substantially increasing sales in the current consolidated fiscal year and beyond, we assigned a certain number of our core consultants to developing sellers and buyers and completing transactions in new fields, including construction and IT. We also focused throughout the business division on sourcing mandates, including in the nursing-care sector, which delayed transaction completions during the first half. Although transaction completions progressed steadily from October onward, the number of completed deals was 88 in the cumulative third-quarter consolidated period, down 8.3% from the same period of the previous year.」

「During the cumulative second-quarter consolidated period, with a view to substantially increasing sales in the current fiscal year and beyond, we assigned a certain number of our core consultants to developing sellers and buyers and completing transactions in new fields, including construction and IT. We also focused company-wide on sourcing mandates, including in the nursing-care sector. As a result, transaction completions were somewhat delayed, and the number of completed deals was 56 in the cumulative second-quarter consolidated period, down 17.6% from the same period of the previous year.」

「During the cumulative first-quarter consolidated period, we assigned a certain number of our core consultants to developing sellers and buyers and completing transactions in new fields, including construction. The number of completed deals was 23, down 28.1% from the same period of the previous year.」

「In this business, we strengthened mandate acquisition through enhanced website content, seminars, direct mail and business alliances with regional financial institutions, while focusing on completing transactions. We continued sales activities to prepare for the full-scale expansion into new fields. In addition, we entered the construction sector from the first-quarter accounting period and are focusing on completing transactions. The number of completed deals was 144 in the fiscal year, up 11.6% from the previous fiscal year.」

「In this business, we strengthened mandate acquisition through enhanced website content, seminars, direct mail and business alliances with regional financial institutions, while focusing on completing transactions. We continued sales activities to prepare for the full-scale expansion into new fields. In addition, we entered the construction sector from the first-quarter accounting period and are focusing on completing transactions. As we focused on medium- and large-sized mandates during the cumulative third-quarter period, the number of completed deals was 96, down 2.0% from the same period of the previous year.」

「In this business, we strengthened mandate acquisition through enhanced website content, seminars, direct mail and business alliances with regional financial institutions, while focusing on completing transactions. We continued sales activities to prepare for the full-scale expansion into new fields. In addition, we entered the construction sector from the first-quarter accounting period and are focusing on completing transactions. The number of completed deals is progressing steadily as planned, reaching 68 in the cumulative second-quarter period, up 13.3% from the same period of the previous year.」

「In this business, we strengthened mandate acquisition through enhanced website content, seminars, direct mail and business alliances with regional financial institutions, while focusing on completing transactions. We continued sales activities to prepare for the full-scale expansion into new fields. In addition, we newly entered the construction sector during the first-quarter accounting period and are focusing on completing transactions. The number of completed deals is progressing steadily as planned, reaching 32 in the cumulative first-quarter period, up 6.7% from the same period of the previous year.」

「In this business, we strengthened mandate acquisition through enhanced website content, seminars, direct mail and business alliances with regional financial institutions, while focusing on completing transactions. We also began preparations and sales activities for the full-scale expansion into new fields. In addition, as the training system and standardization initiatives implemented from the previous fiscal year became established, mid-career M&A consultants became productive sooner than expected. As a result, the number of completed deals increased substantially to 129 in the fiscal year, up 51.8% from the previous fiscal year.」

「In this business, we strengthened mandate acquisition through enhanced website content, seminars, direct mail and business alliances with regional financial institutions, while focusing on completing transactions. We also conducted market research to prepare for the full-scale expansion into new fields. In addition, as the training system and standardization initiatives implemented from the previous fiscal year became established, mid-career M&A consultants became productive sooner than expected. As a result, the number of completed deals increased substantially to 98 in the cumulative third-quarter period, up 71.9% from the same period of the previous year.」

「In this business, we strengthened mandate acquisition through enhanced website content, online seminars, direct mail and business alliances with regional financial institutions, while focusing on completing transactions. We also conducted market research to prepare for the full-scale expansion into new fields. In addition, as the training system and standardization initiatives implemented from the previous fiscal year proved effective, mid-career M&A consultants became productive sooner than expected. As a result, the number of completed deals increased substantially to 60 in the cumulative second-quarter period, up 66.7% from the same period of the previous year.」

「In addition, the training system and standardization initiatives implemented from the previous fiscal year proved effective, and mid-career M&A consultants became productive sooner than expected. As a result, the number of completed deals increased substantially to 30 in the cumulative first-quarter period, up 650.0% from the same period of the previous year.」

「In addition, as the development and standardization of the M&A consultant training system, an issue carried over from the previous fiscal year, was largely completed, the number of completed deals increased substantially to 57 in the cumulative third-quarter period, up 90.0% from the same period of the previous year. During the third-quarter accounting period, we also conducted recruitment activities to substantially increase the number of M&A consultants, and these activities are progressing steadily as planned.」

「In addition, as the development and standardization of the M&A consultant training system, an issue carried over from the previous fiscal year, was largely completed, the number of completed deals increased substantially to 36 in the cumulative second-quarter period, double the number in the same period of the previous year.」

「We have continued to enhance the content on our service website and promote use of the preliminary valuation function, while identifying business owners with needs related to business succession and other matters through our dedicated outbound team. The number of incoming sell-side mandates increased steadily. In addition, we have worked to strengthen the training of M&A consultants to shorten the time required to complete transactions.」

「However, as the time required to complete transactions lengthened due in part to delays in consultant training, the number of completed deals fell below the initial expectation to 49, down 3.9% from the previous fiscal year.」

「During the third-quarter accounting period, we allocated resources toward completing transactions. Although the average fee increased as mandates became larger, the time required to complete transactions lengthened, resulting in fewer completed deals than initially expected.」

「In the M&A advisory services business, we have continued to enhance the content on our service website and promote use of the preliminary valuation function, while identifying business owners with needs related to business succession and other matters through our dedicated outbound team. The number of incoming sell-side mandates increased steadily. In addition, we launched the Osaka office in May 2019 to respond flexibly to the growing number of mandates in the Kansai region.」

「In the M&A advisory services business, we have taken steps to increase the inflow of sell-side mandates and expanded our team of M&A consultants to meet the rapidly growing M&A needs of nursing-care operators.」

「In the M&A brokerage service, in addition to developing new and existing business contacts through the newly established outbound team, we added to the renewed service website a high-accuracy automatic simplified valuation function that classifies the care and welfare sector into 34 business types, as well as a sale-opportunity notification service that provides timely notifications when acquisition opportunities are registered. As a result of these initiatives to increase inquiries, the number of deals closed during the fiscal year increased to 51, up 21.4% from the previous fiscal year.」

「In the M&A brokerage service, a newly established team specializing in outbound activities is developing new and existing business contacts, while initiatives are also under way to increase inquiries by renewing the service website.」

「In the M&A brokerage service, a newly established team specializing in outbound activities is developing new and existing business contacts, while initiatives are also under way to increase inquiries by renewing the service website.」

「In the M&A brokerage service, a newly established team specializing in outbound activities is developing new and existing business contacts.」

「We intend to meet expectations for business succession through M&A by expanding advertising and promotional activities, strengthening our sales consultant team and accelerating closings through further improving matching accuracy using our database.」