YAMADA Consulting Group Co.,Ltd.

Business Details

Comprises four businesses: Management Consulting Business (sustainable growth, IT strategy, organizational strategy, business turnaround), M&A Advisory Business, Business Succession Consulting Business, and Real Estate Consulting Business. Main clients are owner-managers of mid-sized, small-to-medium, and listed companies. The business model centers on maximizing customer LTV, enhancing customer loyalty through cross-selling of multiple services. In addition to Japan, the company operates overseas offices in Thailand, Vietnam, Singapore, the U.S., China, India, and other locations. From FY2027 (ending March 2027), the business segment classification is planned to be reorganized into four categories: "Business Strategy Consulting Business," "Capital Strategy Consulting Business," "Overseas Consulting Business," and "Real Estate Consulting Business."

Recent Overview

Revenue increased, but operating profit fell 18.6% year on year due to higher personnel costs. Business segments to be reorganized from FY2027.

In FY2026 (ending March 2026), the Consulting Business achieved revenue growth to ¥21,183 million (up 4.0% year on year), but SG&A expenses increased by ¥1,366 million year on year due to increased headcount and wage hikes, causing operating profit to decline sharply to ¥2,584 million (down 18.6%). The achievement rate against the initial full-year forecast (¥2,930 million) was only 88.1%. On the other hand, Management Consulting and Business Succession Consulting saw steady deal inquiries and orders, resulting in higher revenue and gross profit. In FY2026, the company made Manas Corporate Partners Co., Ltd. a subsidiary, strengthening its presence in the Indian market. From FY2027, the company plans to reorganize its business segments by integrating the M&A Advisory Business into each consulting business and managing the Overseas Consulting Business as an independent segment. The FY2027 forecast for the Consulting Business is revenue of ¥23,000 million (up 8.5% year on year) and operating profit of ¥3,260 million (up 26.1%).

Key Products

Growth Drivers

• Steady progress in deal inquiries and orders in the M&A Advisory Business (continued brisk domestic M&A market, 102 deals completed)
• Expanding demand for management consulting among mid-sized companies (DX, labor shortage response, industry restructuring needs)
• Increasing demand for business turnaround consulting (rising number of companies with excess debt from COVID-19 emergency loan programs, area- and industry-wide restructuring needs)
• Strengthened M&A advisory capabilities in the Indian market through the subsidiarization of Manas Corporate Partners Co., Ltd.
• Maximizing customer LTV through cross-selling among Business Succession, Management Consulting, M&A, and Investment businesses
• Expanded supply capacity from increased consolidated headcount (1,067 employees at end of March 2025 → 1,154 at end of March 2026)
• Accelerated growth from the FY2027 business segment reorganization, promoting unified operation of M&A and consulting and independent management of the Overseas Consulting Business

Risks

• Risk of quarterly earnings volatility due to uneven timing of deal completions in the M&A Advisory Business (irregular revenue recognition timing due to success-fee model)
• Continued risk of margin decline due to rising personnel costs from increased headcount and wage hikes (SG&A expenses up ¥1,366 million year on year)
• Intensifying competition from an increasing number of M&A firms, exerting downward pressure on deal pricing and deal volume
• Impairment risk related to goodwill balance (¥625 million at end of FY2026, ending March 2026)
• Foreign exchange risk at overseas subsidiaries (foreign exchange loss of ¥27 million recorded in FY2026, ending March 2026)
• Operational risk during the management transition period associated with the FY2027 business segment reorganization