【JP:9236】Stock Price

Japan M&A Solutions is a company that provides M&A intermediary services to address the shortage of successors for small and medium-sized enterprises (SMEs) in Japan. The company's primary service is brokering business acquisitions and sales aimed at business succession and corporate growth. Operating under the management principle of "remaining a trustworthy M&A company to consult with," the company maintains a stance of "never declining inquiries" and handles a wide range of cases. Rather than adopting the traditional upfront fee model, the company has adopted a monthly retainer fee structure to reduce the burden on clients and to enable continuous project progress management.

The company's primary customers are SME owners considering business succession, and it acquires projects mainly through referrals from partner institutions such as regional banks and accounting firms. The revenue structure consists of completion fees received upon M&A closing and monthly retainer fees during the advisory contract period. As of 2024, the company has 637 cumulative partner institutions and concludes approximately 400 new advisory contracts annually. The company adopts a business model in which it pays referral fees to partner institutions, building a stable revenue base through continuous project referrals.

The company operates as a single segment focused on M&A advisory services, providing services in both brokerage and financial advisor (FA) formats. The business process covers the entire flow from identifying needs through partner institutions, individual consultations, advisory contract execution, identifying potential acquirers, negotiating terms, supporting due diligence, and final closing. Rather than limiting itself to simple company matching, the company provides comprehensive advisory services that take into account clients' overall needs, including synergy effects after the transaction and the retention of employee positions.

Japan M&A Solutions pursues sustainable growth by focusing on solving business succession issues for small and medium-sized enterprises. Under the vision of becoming "Japan's most trusted M&A company," the company has set improved deal closure rates as a priority target for the fiscal year ending October 2026. In terms of concrete metrics, the average deal value has remained stable, declining from approximately 9.47 million yen in the fiscal year ending October 2021 to approximately 8.71 million yen in recent periods, securing a stable revenue base. The company is also expanding its M&A advisor headcount from 17 in the fiscal year ending October 2021 to 35 by the fiscal year ending October 2025, demonstrating steady organizational growth.

The core of the company's differentiation strategy lies in "reasonable fees" and a "never turn away inquiries" approach. The company actively handles small and mid-market deals that larger M&A firms often avoid, and has built an efficient structure where teams of two advisors simultaneously manage over 10 cases per team. This end-to-end service delivery enables even inexperienced staff to build deal experience within six months to one year, providing a competitive advantage in talent development. Additionally, the adoption of monthly retainer fees reduces clients' upfront costs and enables continuous case management, further differentiating the company from competitors.

In market expansion, strengthening partnerships with financial institutions is positioned as the top strategic priority. Since the fiscal year ending October 2021, the company has focused on financial institution partnerships and has secured a cumulative 637 partner institutions. Regional banks and credit unions frequently receive business succession inquiries from their small and medium-sized enterprise clients but often lack in-house capacity to address them, creating a natural alignment with the company's services. The company builds trust relationships through seminars for partner institutions and regular progress reporting, establishing a framework to receive steady case referrals.

The company is also investing in technological innovation to strengthen organizational capabilities and improve operational efficiency. For the fiscal year ending October 2026, the company is pursuing a dual-track talent strategy combining recruitment of experienced professionals and development of entry-level staff, aiming to build a diverse organization. The company has introduced systematic progress management through weekly case review meetings and specialized support from the business planning division, moving away from individual-dependent management. The company is also strengthening efforts to enhance credibility through improvements in internal regulations and business processes, as well as regular internal audits to prevent information leaks and standardize service quality.