What kind of M&A strengthens a company? | Growth strategies and PMI from the front lines of acquisitions and divestitures | Matsumoto Naonori (松本尚典)

The author, who previously worked as a senior consultant at a foreign-affiliated consulting firm in New York, has also worked in Japan from the perspectives of sellers, buyers, and management support providers. M&A is described not as merely buying and selling shares, but as a growth strategy for monetising and acquiring management resources in a short period.

The article presents the view that the purpose of M&A is not to “buy and sell companies” in itself, but to acquire management resources while shortening the time required. For buyers, it is important to confirm resources such as talent, customers, technology, and brands, while sellers need to confirm the future vision for the business and the conditions for the transfer of management.

From the perspective of small and medium-sized enterprise policy, business succession and M&A are positioned as contributing to higher corporate value added, and PMI is emphasised as a factor that enhances the effectiveness of M&A. Management policy and organisational integration after the acquisition are considered particularly important.

Four types of resources acquired through M&A are identified: customers and sales channels, talent, technology and know-how, and the time required to enter new businesses. The anticipated benefits include expanding regional markets, acquiring immediately deployable talent, introducing technology and know-how, and shortening the time to market entry.

The period after the deal is signed is the real start, and the article stresses that practical PMI planning is essential, including securing management structures and successor talent for both buyers and sellers. It is considered important to confirm in advance the handover period after the sale, whether successor talent is available, and who will take over management.