ONDECK Co., Ltd.
7360・Growth Market・Services
M&A Advisory Business
The sole reporting segment, centered on intermediary and FA services for domestic SME M&A
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (cumulative 1H, FY2026 (ending November 2026)) | ¥416 million | – (not disclosed for the prior interim period, as consolidated financial statements were not prepared) | — |
| Operating loss (cumulative 1H, FY2026 (ending November 2026)) | -¥104 million | – (not disclosed for the prior interim period, as consolidated financial statements were not prepared) | — |
| Ordinary loss (cumulative 1H, FY2026 (ending November 2026)) | -¥104 million | – (not disclosed for the prior interim period, as consolidated financial statements were not prepared) | — |
| Interim net loss attributable to owners of parent (cumulative 1H, FY2026 (ending November 2026)) | -¥70 million | – (not disclosed for the prior interim period, as consolidated financial statements were not prepared) | — |
| Number of deals closed (cumulative 1H, FY2026 (ending November 2026)) | 10 deals | 22 deals for full prior fiscal year (reference) | — |
| Net sales (full-year forecast, FY2026 (ending November 2026)) | ¥1,630 million | ¥864 million (prior full-year actual) | ↑ |
| Operating income (full-year forecast, FY2026 (ending November 2026)) | ¥194 million | -¥221 million (prior full-year actual) | ↑ |
| Interim net loss per share | -¥27.09 | – (not disclosed for the prior interim period, as consolidated financial statements were not prepared) | — |
| Equity ratio | 80.5% | 82.3% (end of prior fiscal year) | ↓ |
Business Details
Provides advisory services either as an intermediary between transferors and acquirers (Intermediary Format) or as a financial advisor to one party (FA Format). The target market is the domestic SME M&A market. The business model earns success fees upon deal closing. A distinguishing feature is deal sourcing through a business alliance network with public institutions, financial institutions, and professional experts such as licensed specialists. The company provides high-value-added solutions through organic collaboration with the Investment Business and Consulting Business.
Recent Overview
Cumulative 1H (Q2) net sales of ¥416 million and operating loss of ¥104 million, with 10 deals closed; aiming for a full-year turnaround to profit
For the cumulative second quarter (interim period) of FY2026 (ending November 2026), net sales were ¥416 million, operating loss was ¥104 million, and interim net loss attributable to owners of parent was ¥70 million. The number of deals closed was 10. Selling, general and administrative expenses of ¥266 million significantly exceeded gross profit of ¥161 million, resulting in a loss for the first half. On the other hand, the full-year earnings forecast remains unchanged at net sales of ¥1,630 million and operating income of ¥194 million (an 88.6% year-on-year increase in sales and a turnaround to profit), reflecting a plan structure premised on a concentration of deal closings in the second half. There has been no change to the earnings forecast.
Key Products
Growth Drivers
- Continued expansion of demand for business succession M&A due to the ongoing aging of SME business owners and the persistently high rate of successor absence (50.1% according to a 2025 survey)
- Expanding use of M&A as an industry consolidation method (increasing M&A needs as a growth strategy)
- Market development through M&A promotion measures such as subsidy programs and tax reform by the Small and Medium Enterprise Agency, and the publication of the "SME M&A Guidelines (3rd Edition)" and the "Skill Map for SME M&A Professionals (Individuals)"
- Strengthened deal sourcing through expansion of the business alliance network with public institutions, financial institutions, and professional experts such as licensed specialists
- Creation of high-value-added deals through organic collaboration with the Investment Business and Consulting Business
- Healthy market development through public-private collaboration, including the formulation of self-regulatory rules by the M&A Support Institutions Association and the establishment of mechanisms for sharing information on inappropriate buyers
Risks
- The number of deals closed in the first half remained at only 10, requiring a substantial increase in deals closed in the second half to achieve the full-year forecast (risk of an earnings structure weighted toward the second half)
- Uncertainty in deal-closing timing due to lengthening periods from basic agreement to closing
- Earnings volatility risk stemming from a revenue structure dependent on the number of deals closed, average fee per deal, and number of consultants
- Increasing new entry of competitors amid market expansion (a mixed-quality state of service among providers)
- Risk of reputational damage to the industry as a whole due to troubles arising from excessive sales tactics by some M&A support institutions and inappropriate buyers
- Difficulty in securing and developing capable M&A consultants (a talent-dependent business model)
- A high break-even point due to sustained high fixed costs (personnel expenses, facility maintenance costs, system costs, etc.) (SG&A expenses of ¥266 million in the first half against gross profit of ¥161 million)
Last updated: February 24, 2026