M&A Capital Partners Co., Ltd.

The M&A Brokerage & Advisory business has low barriers to entry, requiring no licenses or permits, and faces numerous competitors ranging from financial institutions to small-scale operators. Intensifying competition could give rise to customer acquisition competition and adversely affect business performance. In response, the company is promoting a focus on large-scale deals, establishing a dedicated FA (financial advisory) department, and strengthening the training and recruitment of talented consultants.

The M&A Brokerage & Advisory business is highly susceptible to the effects of the Companies Act and various tax laws. If tax reforms or similar changes dilute the benefits of using M&A, this could lead to a decrease in the number of M&A transactions and negatively affect business performance. In addition, legal regulations could constrain business activities themselves. The company continuously discusses trends in legal and regulatory reform at board of directors meetings and other venues, striving for early detection of adverse impacts and formulation of countermeasures.

The Group specializes in the M&A Brokerage & Advisory business, and if a significant change in the economic environment or a major incident, accident, or disaster that becomes a social issue causes demand to stagnate, the risk of dependence on a single business could materialize and significantly affect business performance. The company strives to detect changes in the external environment in a timely manner through regular management meetings, while also considering acquisitions of peripheral businesses through M&A as opportunities arise.

Business performance depends on the number of officers and employees serving as M&A advisors and the quality of their services. If intensifying competition leads to fiercer competition for talent acquisition or unplanned excessive attrition of personnel, this could affect business performance. In addition, the establishment of SME M&A guidelines by administrative agencies has created demand for even higher service standards and professional ethics. The company aims to improve retention rates and strengthen recruitment through active recruiting activities, a compensation system incorporating long-term employment incentives, and enhanced organizational capabilities through the development of internal systems.

Due to the nature of its business, the company frequently handles highly confidential information, including corporate confidential information and insider information. If information leakage occurs due to unforeseen events such as cyberattacks, this could affect business performance and financial condition through damages claims and loss of trust. The company recognizes that the likelihood of information leakage risk materializing is proportional to the growing social risk of cybersecurity threats. The company continues to strengthen its information management system through the establishment of an appropriate information security environment, multiple annual employee training sessions, and regular internal audits.

Satoru Nakamura, the founder and Representative Director and President, plays a critical role in determining management policy and strategy as well as in business activities overall. If an unforeseen event or his departure were to occur, this could affect business performance. The company also recognizes the disadvantage that administrative burdens tend to increase as the organization grows in scale. The company is developing next-generation leaders through the active sharing of information and know-how via management meetings and the strengthening of an organizational sales structure.