M&A Capital Partners Co., Ltd.

Business Details

The Group operates as a single segment centered on M&A brokerage and advisory (M&A Capital Partners Co., Ltd. and RECOF Corporation) and M&A database provision and media operation (RECOF Data Corporation). Its primary targets are business succession and transfer needs of domestic unlisted owner-operated companies and mid-sized/small-to-medium enterprises. The company handles a wide range of transactions, including large-scale deals, TOBs, carve-outs, and cross-border M&A, with its competitive advantage being a high-quality advisory framework staffed by consultants holding professional qualifications such as certified public accountants and tax accountants. IFRS is applied.

Recent Overview

In the first half of FY2026 (ending March 2026), revenue grew 17.3% and operating profit grew 20.1%, achieving double-digit growth

For the first half of FY2026 (ending March 2026) (October 2025 to March 2026), revenue was ¥13,447 million (up ¥1,980 million, or +17.3%, year on year), and operating profit was ¥5,200 million (up ¥871 million, or +20.1%, year on year). The number of consolidated completed deals increased to 138 (up 24 year on year), and the company maintained through its own capabilities the elevated deal unit price that had been boosted in the prior-year period by a one-time factor (the minimum tax system). Cost of sales was ¥5,020 million (up 22.3% year on year), and selling, general and administrative expenses were ¥3,226 million (up 6.4% year on year). The full-year earnings forecast (revenue of ¥26,991 million, operating profit of ¥10,280 million) remains unchanged.

Key Products

Growth Drivers

• The number of domestic M&A deals reached a record 5,115 in 2025 (January to December), marking a record high for the second consecutive year, with both the number and value of deals also reaching record highs in 2026 (January to March), reflecting continued expansion in business succession needs among mid-sized and small-to-medium enterprises
• Consolidated completed deals increased to 138 (up 24 year on year), driving revenue growth, including 32 large-scale deals (with fees of ¥100 million or more)
• The company maintained through its own capabilities the elevated average deal unit price that had been boosted in the prior-year period by a one-time factor (the minimum tax system), confirming the resilience of the average unit price
• Established management framework combining thorough KPI management across the entire deal-closing process with an appropriate balance between business development activities and progress on contracted deals
• Industry-wide standardization through the Small and Medium-sized Enterprise M&A Guidelines (3rd edition) is promoting industry health, enhancing the competitive advantage of the Group, which maintains a high-quality advisory framework and extensive track record

Risks

• Risk of temporary large fluctuations in revenue due to variability in the number and unit price of completed deals (deal concentration or dispersion caused by external factors such as the minimum tax system)
• Intensifying market share competition due to an increasing number of new entrants among competing M&A brokerage firms and the entry of major financial institutions
• Impact on business performance from intensifying competition to recruit talented consultants and unexpected departures of core personnel
• Cost of sales increased at a rate (+22.3%) exceeding that of revenue, due to increases in bonuses and provision for bonuses linked to revenue as well as outsourcing costs, creating downward pressure on profit margins
• Risk of reputational decline across the industry as a whole resulting from troubles arising from inappropriate M&A advisory practices