Strike Company , Limited

Business Details

Certified public accountants and tax accountants serve as the core management, with M&A intermediary services for mid-sized and small-to-medium enterprises as the main business. The company handles three types of M&A: business succession-type, growth strategy-type, and innovation-type, operating an intermediary model that receives success fees from both sellers and buyers. In addition to its head office (Tokyo), it operates nationwide branches and utilizes its proprietary matching site "M&A Market SMART." It also provides peripheral services such as Financial Advisory (FA) Services, due diligence, business valuation, and strategic consulting. The company plans to transition to a holding company structure effective April 1, 2026, and to move to consolidated accounting from the third quarter.

Recent Overview

H1 saw increased revenue and profit, but plan progress rate was 43%; the company plans to transition to a holding company structure and move to consolidated accounting

In the first half of FY2026 (ending September 2026) (October 2025 to March 2026), net sales were ¥9,737 million (up 8.8% year-on-year) and operating profit was ¥2,699 million (up 10.7% year-on-year), achieving increased revenue and profit. However, due to the lengthening of the period between final contract execution and deal completion, progress did not proceed as originally planned, and the H1 net sales achievement rate against the full-year plan remained at 43.2%. While an increase in per-deal transaction value drove sales, cost of sales rose 12.2% due to increased incentive compensation and the hiring of additional consultants. Effective April 1, 2026, the company transitioned to a holding company structure through a company split (company name: Strike Group Co., Ltd.), and will move to consolidated accounting from the third quarter. Additionally, effective April 1, 2026, the company implemented a 3-for-1 stock split, and revised its year-end dividend forecast upward to ¥65 (split-adjusted; equivalent to ¥195 pre-split). The number of new engagements increased significantly to 636 cases (535 cases in the same prior-year period), indicating progress in pipeline expansion.

Key Products

Growth Drivers

• Medium- to long-term expansion of the M&A market for mid-sized and small-to-medium enterprises against the backdrop of aging business owners and lack of successors (of approximately 60,000 businesses that closed or dissolved in 2024, about half were profitable in the immediately preceding fiscal year)
• Rising per-deal transaction value driven by an increase in large-scale deals (revenue of ¥100 million or more per deal) (26 large-scale deal groups in H1, versus 23 in the same prior-year period)
• Capturing new demand through the expanding adoption of growth strategy-type and innovation-type M&A
• Substantial increase in new engagements (636 cases, up 18.9% year-on-year) expanding the future deal-closing pipeline
• Strengthened collaborative framework through increased personnel exchange with partner financial institutions, accounting firms, and others
• Business expansion into adjacent areas such as FA services and M&A strategic consulting through the transition to a holding company structure
• Increased activity in innovation-type M&A against the backdrop of government policies promoting open innovation and startup development

Risks

• Risk of falling short of plan due to lengthening of the period from final contract execution to deal completion (H1 net sales achievement rate of 43.2%)
• Difficulty securing personnel due to intensifying competition for hiring M&A consultants and a declining working-age population
• Risk of profit margin pressure from a cost-front-loaded structure (12.2% increase in cost of sales due to increased incentive compensation and additional consultant hiring)
• Risk of increased workload and lengthened deal-closing periods due to regulatory tightening, including the SME Agency's creation of a certification system and more active operation of the "designated business operator list"
• Brand risk from social criticism and regulatory tightening related to inappropriate M&A transactions
• Risk of increased administrative costs and need for organizational preparation associated with the transition to a holding company structure and move to consolidated accounting
• Risk of delayed plan progress, with 133 deal groups closed in H1 against the full-year plan of 306 groups (achievement rate of 43.5%)
• Risk of deteriorating market conditions due to the impact of major countries' monetary and trade policy trends on exchange rates and economic activity