Integroup Inc.
192A・Growth Market・Services
Business
Business overview is being prepared.
Business Model
The company collects no upfront or interim fees, receiving success fees from both sellers and buyers only upon completion of an M&A transaction. Success fees are calculated based on the transaction value, with a minimum success fee of ¥15 million. In FY2025 (ending May 2025), average revenue per deal was ¥44 million. The company employs a system in which a single consultant handles a deal from start to finish, building trust with clients while enhancing operational efficiency.
Company Strengths
Among the four listed M&A intermediary specialist firms, which adopt minimum success fees ranging from ¥20 million to ¥25 million, the Company has set a lower level of ¥15 million. This gives it price competitiveness in the small-scale deal segment with M&A transfer amounts of ¥300 million or less, which represents the volume zone for SME M&A. Furthermore, the adoption of a calculation method based on the transaction amount helps to contain the burden on clients.
The Company is the only listed M&A intermediary specialist firm to adopt a complete success-fee system that charges neither retainer fees nor interim fees to either sellers or buyers. This highly transparent fee structure, which eliminates client risk in the event an M&A deal falls through, contributes to enhanced social credibility while also complying with the Third Edition of the SME M&A Guidelines.
The number of M&A consultants expanded approximately 3.2-fold, from 13 at the end of FY2021 (ending May 2021) to 42 at the end of FY2025 (ending May 2025). Through an end-to-end system in which a single consultant handles everything from initial consultation to closing, the Company builds client trust, improves information-sharing efficiency, and enhances speed. A dedicated training officer has been assigned, and new employees undergo approximately two months of intensive training and on-the-job training to become productive at an early stage.
ENVALITH's Perspective
Performance Trend
Revenue declined for three consecutive periods, from ¥2,198 million in FY2024 (ending May 2024) to ¥1,892 million in FY2025 (ending May 2025) and ¥1,558 million in FY2026 (ending May 2026). Operating profit deteriorated rapidly, from ¥984 million to ¥497 million to ¥119 million, with the operating profit margin falling from 26.3% to 7.7%. As an external factor, an increase in the supply of sale mandates in the SME M&A market has strengthened buyers' selectivity, leading to a decline in the deal conclusion rate. Revenue per deal fell from approximately ¥44 million in the prior period to approximately ¥32 million in the current period, and the increase in the number of concluded deals (43 to 49) was insufficient to offset the decline in unit price. Selling, general and administrative expenses increased from ¥546 million to ¥600 million, and the cost increase associated with the expansion of consultant headcount (42 to 49) further squeezed profits.
Growth Strategy
The company aims for a V-shaped earnings recovery centered on three pillars: recovering the deal closing rate, expanding FA collaboration, and improving consultant productivity.
The company will continue expanding the buyer information research team launched in the previous fiscal year and strengthen the collection of fresh, up-to-date buyer information to improve the deal closing rate. This is positioned as a direct response to the changing market environment in which buyers are becoming more selective.
Under the divisional structure introduced in the current fiscal year, the company will strengthen guidance and sales support for consultants in each division, centered on a divisional performance evaluation system. The aim is to improve productivity by further reinforcing the training and management framework for existing consultants.
The newly established inside sales department supports consultants' sales activities, aiming to increase the acquisition of high-quality sale mandates. Since it will take some time for results to materialize, the effects are expected to emerge from FY2027 (ending May 2027) onward.
By promoting FA collaboration arrangements in which the company serves as the sell-side FA/buy-side FA while an industry peer serves as the buy-side FA/sell-side FA respectively, the company aims to increase the number of deals closed that would be difficult to complete on its own. This is one of the key measures toward achieving net sales of ¥2,093 million in FY2027 (ending May 2027).
The company will scale back its recruitment plan from a net increase of approximately 25% versus the end of the previous fiscal year to a net increase of approximately 10%, keeping the number of consultants at the end of FY2027 (ending May 2027) to 54 (a net increase of 5). By focusing on improving the productivity of existing consultants while curbing cost increases, the company will prioritize the recovery of profit margins.
Last updated: July 17, 2026