Our group strives to build appropriate relationships with all parties concerned with our M&A support activities, spanning clients, alliance partners, employees, shareholders, regional communities and the global environment.

In terms of engagement with clients, to give clients a true sense of M&A as a secure and safe method, we aim to provide the best solutions by understanding clients’ needs and requests through active communication. We pursue client satisfaction including post-M&A services, as well as M&A process.

Support after deal conclusion

The Company offers support services from various perspectives for successful M&As. The owners of sellers have a sense of responsibility and attachment to their company due to the fact that they had developed it for many years, and sometimes feel anxiety and a sense of loss after transfer. Our support gives the owners of sellers confidence in the new stage, so that they can pursue the second life with peace of mind. In addition, we provide support services for post-merger integration (PMI) process. We support the success of both sellers and buyers after M&A deal conclusion.

M&A Deal Closing Ceremony initiatives

The M&A Deal Closing Ceremony is a ceremony which takes place on a day on which a seller and buyer take the first step forward together, in the next stage right after negotiations on terms and conditions, with mutual understanding of corporate cultures. In the beginning, the M&A Deal Closing Ceremony took place on a trial basis. However, the ceremony started in full-scale as a project of Deal Closing Ceremony in 2015, based on M&A consultants’ suggestion that companies that had the ceremony often experienced a smooth integration subsequently. Nihon M&A Center has organized a system in which dedicated staff for ceremonies (we call them M&A Ceremonist) hold M&A Deal Closing Ceremonies at various locations across Japan. The M&A Deal Closing Ceremony is often compared to a wedding between companies. A dedicated team for brightening the special day directs an uplifting ceremony that is reminiscent of a wedding, creating a special and unforgettable day for participants.

Implementation of client surveys upon deal conclusion

After a deal is closed, we conduct separate client surveys of both the seller and the buyer. As well as surveying the degree of satisfaction with the individual processes of the M&A and the services provided by the consultant who handled the deal, we also ask about reasons for determining M&A and what aspects of M&A they placed most importance on. This allows us to accurately gauge the level of our clients’ satisfaction, which will assist in improvements of operational processes, provision of new services and review of the consultant training process.

Production of The WAY, a memoir of the seller’s owner

After the conclusion of the M&A, we produce, free of charge, a booklet called “The WAY”, based on interviews with the owner of the seller. The purpose of The WAY is not only to recount the owner’s experience of the M&A and their achievements, but also to preserve intangible value, such as their attitude to life, their beliefs and philosophy on life. The real experiences of the business owner who has implemented the M&A can also provide hints for other business owners with issues and concerns that will help them to solve their own problems.

Provision of property succession consulting services

After the conclusion of the M&A, Next Navi Inc. provides services of property evaluation and property succession for the owner of the seller. In addition, we offer various services after transactions, including organizing a membership club with the aim of enriching prior owners’ second life.

Automatic warranty and indemnity insurance coverage

In 2021, we concluded a business alliance with Tokio Marine & Nichido Fire Insurance Co., Ltd. This insurance is designed for avoiding trouble and unforeseen losses caused by warranty and indemnity violations that may emerge after the M&A transaction is concluded. All M&A transactions supported by Nihon M&A Center are covered without the need for payment of insurance premiums or prior screening by Tokio Marine & Nichido. In the event of warranty and indemnity violations, the insurance helps prior owners keep a cooperative relationship with the buyer and contribute to achieving a smooth and satisfactory M&A.

Post-merger integration (PMI) consulting services

Japan PMI Consulting Inc. offers post-merger integration (PMI) support services specializing in SMEs. It supports a smooth business integration and synergy generation in order that both the seller and buyer companies become partners in achieving growth. Japan PMI Consulting provides support for quantitative issues such as accounting and financial results as well as qualitative issues such as management vision and workflow to lead M&As to success.

Nihon M&A Center has alliances with accounting firms, regional financial institutions such as banks and credit unions, and larger financial institutions, including megabanks and securities companies, throughout Japan. Approximately 60% of the deals that we close are materialized based on introductions from our business partners. By sharing our knowledge and systems with our business partners, we promote cooperation and disseminate secure and safe M&A transactions.

Regional banks

We have partnerships with 97 of the 99 domestic regional banks (about 90% as of as of Dec. 2024) and work in alliance. We provide the administrative office for the National Financial M&A Study Group, members of which are from the regional banks, the mission being to improve M&A skills and exchange M&A information. We organize an annual Bank of the Year award system for the regional banks with the aim of helping to promote M&A activity. We are pleased to take on M&A trainees in our company as secondees from the regional banks, the cumulative total of which is around 400. Additionally, we send some of our employees on secondment to regional banks, sometimes in this novel way actively supporting promotion of M&A activity at regional banks.

In addition, we established a joint venture company with the Juroku Financial Group (Gifu prefecture) in 2023. In the following year, we establised a joint venture with the Higo Bank, Ltd. (Kumamoto prefecture) and E.SUN Venture Capital (Taiwan) . We continue to strengthen alliances with regional financial institutions for revitalization of regional economies.

The Shinkin banks

We have partnerships with 220 of the 254 Shinkin banks (about 80% as of as of Dec. 2024) and work in alliance.
We have an alliance partnership with Shinkin Capital, which is the subsidiary of Shinkin Central Bank responsible for M&A, and with Shinkin banks throughout Japan.
We periodically hold a networking forum for members of the Shinkin family of banks to increase M&A skills and exchange information. Also, we have created an award system for Shinkin banks which have successfully engaged in M&A.

Accountancy firms

We have partnerships with 1,051 accountancy firms (as of as of as of Dec. 2024) and work in alliance. These accounting firms gain full membership of the Merger and Acquisition Association of Japan, whose activity includes periodically arranging international M&A conferences, general assemblies for members and regional branch meetings for members so that participants can gain M&A skills and exchange information.
We provide several kinds of support to promote M&A activities including training programmes (seminars for future leaders, sales off-sites, coaching on strategies for succession plans) and distribution of posters and pamphlets as information tools.
We also have an "M&A concierge" desk staffed by people helping support activities of our M&A consultants, strengthening the bond between the member firms and our company.

Large financial institutions

We have alliances with the large financial institutions such as Nomura Securities, Daiwa Securities, Mitsubishi UFJ Financial Group, Mitsubishi UFJ Morgan Stanley Securities, Sumitomo Mitsui Banking Corporation, JAPAN POST and JAPAN POST HOLDINGS, Tokai Tokyo Securities, and SBI SECURITIES (Listed by the time series of partnership starting）. These large financial institutions have their own investment banking divisions which are active in M&A, but we collaborate through their introductions to us of SME M&A opportunities. We also actively send secondees to work with them and there has been a rapid increase in the volume of mandates as a result.

We place importance on dialogue with shareholders and investors, actively conducting IR activities and announcing IR-related information.

How we increase shareholder value

Our goal is to become the top global integrated M&A company. We strive for the long-term increase of shareholder value through the long-term growth of completed transactions, sales and profit. Four big corporate targets are profitability, stability, growth and sociality. We constantly seek evidence of these in our own company and for our clients.

We have set a target of 25% for ROE by FY2027, our current medium-term management target period, aiming for the increase in shareholder value,

Shareholder Returns

In addition to strengthening our financial structure and management foundations, we recognize that the long-term return of profits to our shareholders is our most important management issue. Based on that recognition, during our medium-term management target period until FY2027, we have increased our payout ratio from 40% or more to 60% or more. In FY2023, in addition to continuing this policy, we purchased treasury stock worth ¥7.0 Billion in May 2023 as well as \7.0 Billion in January 2024, and we have strengthened our returns to our shareholders who have supported us.

We will continue with this shareholder returns policy and actively make investments in new businesses.

Timely and appropriate IR activity

In order to engage constructively with our shareholders, we have adopted the following practices.

• Respect for legal, stock exchange and internal rules governing disclosure of information.
• Publication of quarterly information reports on our website and hosting explanatory meetings with institutional investors at which a representative director presents.
• IR activities overseas by a representative director in order to increase dialogue with foreign investors.
• Forums every year for individual investors to hear explanations directly
• Appropriate feedback on opinions and requests learnt through conversations with shareholders is provided to management, senior executives and members of relevant divisions.

To Investors