Japan M&A Solution Incorporated

Business Details

Japan M&A Solution Co., Ltd. is a single-segment company that provides M&A advisory services to small and medium-sized enterprises and small businesses facing the issue of lack of successors. The company acquires deals through a partnership network with financial institutions, professional service firms, and business corporations, with 37 M&A advisors providing end-to-end services primarily in an intermediary format. Revenue sources are success fees and monthly advisory fees, and the company's competitive advantage lies in its low-burden fee structure that requires no upfront retainer fee.

Recent Overview

In H1 FY2026 (ending March 2026), revenue grew 41% and the company achieved a turnaround to operating profit, leading to an upward revision of the full-year forecast

In the first half of FY2026 (ending March 2026) (November 2025 to April 2026), the company achieved revenue of ¥526 million (up 41.2% year on year) and operating profit of ¥142 million (versus an operating loss of ¥17 million in the same period of the prior fiscal year), marking a significant turnaround to profitability. Key KPIs expanded steadily, with 44 completed deals and 263 advisory contracts. The number of M&A advisors increased by 4 from the end of the prior interim period to 37. In light of this, the full-year earnings forecast was revised upward to revenue of ¥990 million and operating profit of ¥178 million. The company also announced its first-ever dividend forecast of ¥10 per share at fiscal year-end (¥10 annually). Amid the ongoing strengthening of public-private governance, including the establishment of a certification system for small and medium-sized enterprise M&A support and increased sharing of information on inappropriate buyers by industry self-regulatory bodies, demand is rising for support providers with high levels of expertise and service quality.

Key Products

Growth Drivers

• Mid- to long-term expansion of M&A demand driven by the aging of small and medium-sized enterprise owners and the worsening successor shortage problem (the rate of lack of successors remains at a high level)
• Expansion of the market's scope driven by increasingly active "growth-strategy M&A" aimed not only at business succession but also at new business creation, growth strategies, and industry restructuring
• Strengthening of a stable deal-sourcing foundation through the expansion of the partnership network with financial institutions, professional service firms, and business corporations
• Accumulation of a future deal-completion pipeline through an increase in new advisory contracts (263 contracts in H1, up 16.9% year on year)
• Strengthened public-private governance—including the establishment of a certification system for small and medium-sized enterprise M&A support and more active sharing of information on inappropriate buyers by industry self-regulatory bodies—which is boosting demand for highly specialized support providers
• Expansion of deal-handling capacity through continued hiring of M&A advisors (37 at the end of H1)

Risks

• Risk that increased personnel-related costs associated with hiring and training M&A advisors could pressure profitability (although in H1 FY2026 (ending March 2026), SG&A expenses were kept at ¥108 million versus ¥108 million in the prior interim period, achieving a turnaround to profitability)
• A large gap between the number of new advisory contracts (263 in H1) and the number of completed deals (44), meaning improvement in the deal-completion rate remains a challenge
• Intensifying competition for deal acquisition due to an increase in new entrants into the M&A intermediary industry and heightened competition with major players
• Risk of declining corporate appetite for M&A due to deteriorating macroeconomic conditions, including uncertainty in U.S. trade policy, geopolitical risk, rising energy prices, and yen depreciation
• Risk of increased response costs due to rising demands for improved ethics and expertise among M&A support providers amid rapidly changing market conditions
• Risk of stagnant average deal value due to a persistently high proportion of small-scale deal completions