2023.4.19  Ministry of Economy, Trade and Industry, Japan

    On April 19, 2023, the Ministry of Economy, Trade and Industry, Japan, published a report titled "Case Studies on the Utilization of M&A in Japan", a collection of case studies of Japanese companies that utilized foreign capital to bring about corporate transformation, improvement to operations, and dramatic growth. At 72 pages, it contains a wealth of information and is a good reference when carrying out M&A in Japan.

    Summary of report
    ◼  In recent years, several Japanese companies have utilized the global networks and know-how of foreign companies to achieve goals like expanding overseas sales channels, improving operating efficiency, and strengthening or developing talent.
    ◼  The Japanese government is also working enthusiastically to bring talent and investment capital from overseas (introducing highly-skilled foreign talent and promoting direct investment in Japan). The number and value of M&A deals with Japanese companies by foreign companies or private equity funds (hereinafter referred to as “PE funds”) are on the rise.
    ◼  Aside from 18 case studies in which foreign capital was used in M&A in Japan, this collection of case studies also includes 2 cases of PE funds investment in startups, in addition to discussions about the positive effects of M&A in Japan, things to watch out for, and factors that contribute to successful M&A.
    ◼  In order for a company to ensure long-term growth in a rapidly changing business environment, it is necessary to rapidly respond to the difficult issues with regards to reviewing the business portfolio, innovating, strengthening global expansion, pushing for digital transformation, increasing productivity and profitability, and practicing ESG and diversity management, among other things.
    ◼  For the purposes of serving as a reference, each case’s journey of solving problems and growing, along with employees’ own honest accounts, are described in detail. In addition to success stories, cases in which efforts were made steadily and tough judgements were faced are included. In this regard, in order to paint a more realistic picture, the report not only introduces the benefits of M&A in Japan, but also documents difficulties and efforts required as much as possible.
    ◼  The authors hope that this collection of case studies will help readers solve operating issues and accelerate their companies’growth.

    Details of the report can be found on the website below.