ENVALITH
株式会社日本M&Aセンターホールディングス logo

Nihon M&A Center Holdings Inc.

2127・Prime Market・Services

Official website
株式会社日本M&Aセンターホールディングス logo
Nihon M&A Center Holdings Inc.2127

Business

Nihon M&A Center Holdings, Inc. is one of Japan's largest M&A intermediary groups, founded in 1991. Its core business model is the "tie-up intermediary contract" (teikei chukai keiyaku), through which it brokers deals between transferring parties—small and medium-sized enterprises facing succession issues—and acquiring parties pursuing growth strategies. The company sources deals through a nationwide network of 1,111 Regional M&A Center locations (accounting firm networks), business alliances with 223 shinkin banks (credit unions), and a three-company joint venture framework with regional financial institutions. It has expanded into adjacent areas such as corporate valuation, PMI (post-merger integration) consulting, fund management, and TOKYO PRO Market listing support, positioning itself as a comprehensive M&A enterprise that provides added value across the entire M&A process. The group comprises 17 consolidated subsidiaries and 18 equity-method affiliates.

Business Model

Retainer fees (approximately ¥1 million to ¥5 million each) are received from both the transferor and transferee, and upon deal completion, a success fee calculated on a Lehman formula basis—applying a fee rate to the fair value of total assets—is received. This is a performance-linked model in which success fees account for the vast majority of revenue, and the ordinary income margin for FY2026 (ending March 2026) remained at a high level of 38.1%. Through a focus on mid-cap deals (revenue of ¥1.0 billion or more, or profit of ¥50 million or more), M&A revenue per deal rose to ¥45.7 million (up ¥6.1 million year on year), reflecting a shift toward a structure that expands revenue through higher unit prices rather than deal count.

Company Strengths

Established a nationwide network of 1,111 regional M&A centers operated by accounting firms, business alliances with 223 shinkin banks (credit unions), and three joint ventures with regional financial institutions (NOBUNAGA Succession, Kyushu M&A Advisors, Okigin Success Partners). This wide-area information network, difficult for competitors to replicate in a short period, underpins the company's ability to secure deals.

Leveraging "Bring Out," an AI-based deal negotiation analysis service with which the company formed a capital and business alliance in February 2025, the company has accumulated qualitative interview data on approximately 3,000 companies seeking to be acquired and M&A needs interviews with approximately 9,000 candidate acquiring companies as of March 2026. By visualizing negotiation data and sharing knowledge, the company has built a proprietary system to train consultants and improve deal closure rates.

In FY2026 (ending March 2026), the company achieved record highs across all key metrics, with net sales of ¥50,257 million, ordinary income of ¥19,154 million, and net income of ¥12,487 million. While maintaining a highly profitable structure with an ordinary income margin of 38.1%, the company secured a period-end cash and cash equivalents balance of ¥39,440 million. Operating cash flow increased 18.6% year on year to ¥15,551 million, demonstrating a robust financial foundation.

ENVALITH's Perspective

For FY2026 (ending March 2026), revenue reached ¥50,257 million (up 14.0% year-on-year), operating profit reached ¥18,761 million (up 12.2%), and profit attributable to owners of parent reached ¥12,487 million (up 14.0%), setting record highs across all metrics. Achievement rates against earnings forecasts also significantly exceeded targets, at 108.5% for revenue, 112.7% for ordinary profit, and 113.5% for net profit. Following a four-year recovery process after the misconduct came to light, a return to the earnings achievement cycle was confirmed, with the numbers substantiating management's characterization of the transition to a re-growth stage positioned as a "second founding." As an external factor, tailwinds from rising demand for business succession among small and medium-sized enterprises also supported performance.

In FY2026 (ending March 2026), the number of closed deals was 1,061 (down 17 from the previous period), and new engagements accepted was 1,281 (down 151 from 1,432 in the previous period), representing a contraction on a volume basis. However, the company has explicitly indicated a shift in its engagement policy from volume expansion toward emphasis on deal feasibility and client outcome accountability, explaining this as a forward-looking structural transition intended to raise the substantive number of effective engagements and improve future profitability. Continued monitoring is needed regarding whether the upward trend in per-deal unit pricing persists, and what impact the contraction in engagements accepted will have on medium- to long-term deal closure counts and revenue.

The full-year forecast for FY2027 (ending March 2027) calls for revenue of ¥52,800 million (up 5.1%) and ordinary profit of ¥19,300 million (up 0.8%), indicating revenue growth alongside a slowdown in profit growth. The company explains this as a conservative setting intended to "restore stakeholder trust through reliable achievement of results." The dividend per share is maintained at ¥29, but the dividend payout ratio shows a declining trend, from 84.0% in FY2025 (ended March 2025) to 73.7% in FY2026 (ended March 2026) and a forecast 71.3% in FY2027 (ending March 2027). The special dividend is also being reduced, from ¥6 in FY2026 (ended March 2026) to ¥4 in FY2027 (ending March 2027), marking a shift in shareholder return policy that warrants investor attention.

Growth Strategy

Sustainable renewed growth driven by strengthening mid-cap deals, AI utilization, regional collaboration, and establishing the fund business as a second pillar of earnings

Continued focus on mid-sized deals with revenue of ¥1 billion or more or profit of ¥50 million or more. M&A revenue per deal rose from ¥39.6 million in the previous fiscal year to ¥45.7 million in FY2026 (ending March 2026), reflecting steady progress in shifting the revenue structure toward emphasizing unit price and profit margin rather than deal volume. Further reinforcement of this policy has been explicitly stated as a priority for FY2027 (ending March 2027).

The company is leveraging its AI deal-analysis service "Bring Out" to build a corporate database, improve deal conclusion rates, and develop consultants. As of March 2026, data had been accumulated on approximately 3,000 seller companies and approximately 9,000 prospective buyer companies. This is expected to contribute to an increase in new buy-side mandates and improved deal conclusion rates.

The company held seminars at approximately 40 venues nationwide under the theme "M&A Seminar for Corporate Innovation: Japan Creation 2025," attracting over 10,000 applicants, more than 1.5 times the year-earlier level. Online seminars and small-group discussion sessions were also held, expanding touchpoints with business owners unfamiliar with M&A and leading to new mandate acquisitions.

In July 2025, the company established Okigin Success Partners as a joint venture with The Bank of Okinawa, bringing its total number of joint ventures to three. As a regional revitalization project, Yamaguchi Prefecture was added in January 2026, bringing the number of prefectures with management consultation counters to five. The company continues to expand its regionally-rooted infrastructure for deal origination.

With an effective date of April 1, 2026, the company established J-Capital Co., Ltd. (capital of ¥300 million), an intermediate holding company overseeing the fund business, through an incorporation-type company split. J-Capital brings Nihon Investment Fund, Nihon Search Fund, and AtoG Capital under its umbrella, aiming to diversify the business portfolio by establishing the fund business as a second pillar of earnings alongside the M&A advisory business.

The company has shifted its origination policy from a volume-expansion approach to one emphasizing "likelihood of deal conclusion" and "accountability for results to clients." The number of new mandates in FY2026 (ending March 2026) was 1,281, a decrease of 151 from 1,432 in the previous fiscal year; however, this is positioned as a forward-looking structural transition aimed at increasing the substantive effective mandate count and improving future profitability. Attention is focused on the impact on the number of concluded deals and unit prices from FY2027 (ending March 2027) onward.

Last updated: July 19, 2026