Our most important management resources at Nihon M&A Center Group are “human resources,” or “employees.” It is through the growth and success of our employees that we can achieve our “Purpose” of “To bring optimal M&A ever closer”. Therefore, we consider the realization of an organization and environment where employees can work enthusiastically to be the most crucial component of our materiality.
Currently, we continue to focus on promoting the “Philosophy” established in the FY2022. We position this “Philosophy” as the code of conduct and decision-making criteria for all employees to achieve our “Purpose”, and it serves as the common guideline from recruitment criteria to human resource development and performance evaluations. In addition, we have set “Becoming a Group of Autonomous Professionals!” as our management theme for FY2024, and have developed a variety of initiatives and activities to foster professionalism and support the growth of each employee.
We have signed the United Nations Global Compact (UNGC), which is an initiative promoted by the United Nations. We respect the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, and the four core areas of the International Labour Organization (ILO) standards. We promote human rights in the Group Compliance Fundamental Guidelines. In recruitment and promotion, we adhere to a policy of non-discrimination based on nationality, race, religion, place of origin, gender, age, disability, and other factors. Additionally, recognizing the need for special consideration regarding children’s rights, we support the international norms outlined in the “Children’s Rights and Business Principles” and strive to protect and promote children’s rights in our business operations.
Human resources Initiatives
Integrated structure of recruitment, training & development, and performance support
As we are the originator of M&A intermediary business for SMEs, our business model is unique to our company, which means there are few ready-to-go talents available in the job market. Therefore, we believe that recruiting and developing highly talented individuals in-house with untapped potential and providing an environment where they can excel over the medium- to long-term are directly linked to our company’s growth and success. With this in mind, we have established a comprehensive system that encompasses recruitment, training & development, and performance support for our employees to succeed.
In designing the organization, we carefully review the background and aptitude of each individual before determining the department and role for both new graduate entrants and mid-career hires, in order to incorporate a wide variety of human resources into the organization. We have a system in place to provide thorough training for one to two months after employment, and to support even inexperienced employees until they become full-fledged M&A consultants. Under the banner of “Employee First Strategy” set in FY2020, these principles aim to strengthen the organizational structure that supports employees’ career enhancements.
Organizational culture (formulation and penetration of our Purpose and Philosophy)
Promoting the understanding and adoption of our “Purpose” and “Philosophy” as shared values among employees is an important theme. After establishing our “Purpose”, we conducted “vision interviews” between executives and employees in each department on a one-on-one basis. The purpose of these interviews was for individuals to set their own individual “Purpose” and to perceive it as something personal. Our intention was to synchronize personal development plan with company’s growth. Philosophy has become a key criterion in the current hiring process and employee performance evaluations.
Various initiatives, such as training programs and management messages are being implemented to promote its penetration of Philosophy within the Company. To assess the level of success, a “Philosophy Survey” was also conducted.
Recruitment of talented human resources
In our recruitment activities, we enthusiastically communicate to deepen understanding of our company’s business operations and growth strategies. This includes monthly events featuring our President and other executives as speakers, as well as utilizing internships, workshops, and YouTube streaming for students. We place emphasis on employee referral recruitment to secure individuals whoresonate with our “Purpose”.
In Youtube video project, we are releasing videos about a day in the life of an M&A consultant, training for new mid-career employees as well as career stories of M&A consultants.
Early development, empowerment and retention of human resources
In terms of talent development, we have implemented training programs based on specific objectives and targeted organizational layer. They construct a structured and comprehensive curriculum. For consultants and corporate staff, we determine the focus for each fiscal year based on the experience levels in the three tiers: “senior management,” “middle management,” and “team members”. In FY2021 - FY2022, we focused on strengthening the middle management layer, including group leaders and section managers. As the younger talent pool expanded due to active recruitment, for FY2023, we particularly aimed to foster and empower early-career employees within their first three years of joining the Company and ensure their long-term commitment. Additionally, we started implementing a talent management system to leverage each employee’s strengths and preferences in job assignments and project team formations.
The company-wide turnover rate for FY2023 was 16.9%, but our medium- to long-term goal is to maintain the rate at the 11-12% level. To improve retention rates, we are advancing initiatives such as reviewing the evaluation system and enhancing career plans.
The following are excerpts from the training programs.
New employee training
Regardless of whether they are new graduates or mid-career hires, we conduct thorough training for each position over a period of one to two months. The training includes not only basic business etiquette and knowledge of the M&A intermediary services industry but also focuses on compliance education.
Middle manager training
We view the strengthening of management skills of newly appointed managers and other middle managers as an important factor for the growth of our business. We help them to develop their task management and people management skills while taking productivity and operational efficiency into consideration.
• General Manager Training (layer-based)
• Management Training (layer-based)
Special training from top management
The President and Directors take on the role of direct mentors, offering core and young consultants opportunities to learn practical know-how and develop a client-centric approach through case studies, role-playing, and discussions covering the process from basic agreements to closures. As a leading company, we intend to contribute to raising the level of talent and improving the quality of services across the industry.
• Young Consultant Training Program (selected)
• Top Consultant Development Program (selected)
• Executive Coaching (selected)
Labour practices and diversity
Productivity improvement and workstyles
As a global company, we understand the purposes behind the laws and regulations set by each country and faithfully adhere to them. In Japan, we have concluded an agreement on “Overtime and Holiday Work (36 Agreement)” with the employee representatives based on the Labor Standards Act, ensuring compliance with appropriate working hours. We are striving to achieve a balanced state of mental, physical, and financial well-being for our employees in both their personal and professional lives by promoting operational efficiency and reducing long working hours. We have implemented flexible working hours for corporate staff and introduced a “free address office” in certain departments, where employees can choose their seats based on their daily tasks without having assigned spots. These initiatives aim to enhance internal communication and improve work efficiency.
Achievement of a healthy and safe workplace
Employee health is a necessary condition for the growth and success of our company. In April 2024, we introduced a dedicated company health insurance scheme for the Group. This scheme offers a flexible benefits plan called the “3KM Plan (Cafeteria Plan),” where each employee can use points to select various options for health promotion, relaxation, and more according to their preferences.
We continue to achieve a 100% participation rate in health check-ups, and the Group offers assistance for the cost of health check-ups at a level well above the legally mandated level. The risk indicators for stress checks conducted annually are also significantly lower than the national average. Additionally, we expanded our support system to ensure that employees have access to counseling from occupational health physicians and medical counselors as needed. In July 2024, we opened the “HR Portal Site” for employees, clearly indicating the contact point for the above counseling, as well as maintaining a FAQ for labor and human resource related inquiries and clearly indicating its contact point. Consultations and reports regarding bullying, harassment, and other labor issues are also accepted through our internal consultation and whistleblowing hotline.
Moreover, we actively support employee participation in the sporting initiatives such as MA6 activities, company-wide golf competitions, and the Financial Runners relay race. Thus, as part of our health management, we are dedicated to creating a workplace environment where employees can work vigorously, healthy, and safely.
Support for balancing work with childcare
We have implemented support systems for employees who are raising children, including a babysitter support fund and a system that allows them to extend the period of reduced working hours until their child reaches the fourth grade. We are continuously expanding these programs to support employees in achieving a balance between work and family life. In FY2024, we added a new paid leave for child nursing care, and introduced on a trial basis an early return support program, which provides childcare subsidies to employees who return to work before their child turns one year old.
Diversity of Nationality
As our business expands globally, we actively recruit foreign nationals and local employees in overseas locations. In terms of equal opportunities and mutual understanding, we organize study sessions where overseas branch employees exchange information about sales methods and market analysis. We also offer opportunities such as organizing overseas study trips for our partnering accounting firms.
Promotion of diversity & inclusion
Under the belief that diversity is the key driver of innovation, we are actively promoting Diversity & Inclusion (D&I). In FY2022, we launched the “Women’s Empowerment Project” as an area of high urgency. Since FY2023, we have set various numerical targets and are fully committed to implementing D&I initiatives.
Quantitative Targets
(As of start of the fiscal year)
2023
2027
2030
Ratio of female directors
14.3%
21.4%
31.3%
Ratio of female managers (Section manager level and above)
16.1%
21.1%
21.9%
Ratio of female employees
27.8%
28.9%
30.2%
D&I concept movie
We interviewed top management and project owners about their passion for promoting D&I, the background behind the launch of the D&I project, and the initiatives of the D&I project.
Additionally, we heard employees’ opinions about the project’s efforts to support the activities of female consultants, encourage male employees to take paternity leave, and collaborate with national staff at overseas offices.
Employee evaluation system based on our Philosophy
The criteria for hiring and the metric of performance evaluation are designed based on the “Philosophy”. We adopted a system in which those who embody our Philosophy more concretely and achieve higher quantitative and qualitative goals receive high evaluations. The results of these evaluations are fed back through regular one-on-one meetings with their supervisors.
From the viewpoint of fostering leadership, employees at the executive officer level and above are given “360-degree feedback,” in which information on the strengths and weaknesses of the individuals is gathered from surrounding employees and fed back to them directly. The results are used to appropriately recognize their own strengths, areas for improvement, and clearly envision their future goals to create a speedy growth cycle, and to check whether they are leaders who embody our Philosophy.
Recognition of high performers (MVP, Deal of the Year)
We have established a recognition system that awards outstanding performers twice a year. This system not only considers simple sales performance but also evaluates the quality of projects based on factors such as the significance of their social impact and the achievement of great synergy through innovative ideas. In addition to recognizing individuals with the Most Valuable Player (MVP) award, we also have the Deal of the Year, which acknowledges the entire team involved in a project’s success.
100% supported employee stock ownership program
To promote a strong awareness among employees of increasing the enterprise value on par with the shareholders’ perspectives, we have introduced a special support system within our employee stock ownership program. Under this program, the Company provides an incentive payment equal to the amount contributed by employees (100% matching). This initiative aims to enhance both enterprise value of the Company and the asset formation of employees, fostering a sense of fulfillment for both. In addition, starting in FY2024, we have begun holding quarterly financial results briefings for employees.
Employee survey
We conduct employee surveys every 1-2 years. The results of these surveys, which can be considered as the “voice of the employees,” have led to the implementation of various training programs and HR initiatives. We have introduced a quarterly pulse survey to track the progress in a timelier manner. We will continue to monitor regularly and focus on improving employee engagement.
Strengthening internal communication
We place the “3KM” at the core of our management concept and organizational culture, and under the 3KM concept, employees work to increase Motivation for the three Ks, “Kojin” (individual), “Katei” (household), “Kaisha” (company), and promote Management based on Marks (targets). For example, during one on one discussions between supervisors and subordinates, we encourage addressing all three aspects of 3KM covering topics from the perspective of “what it takes to be the happiest person possible”.
Additionally, we organize events such as inviting high-performing employees and their partners to Disneyland, hosting family events, and publishing a PR magazine for employees’ families.
Furthermore, we support an internal activity called “MA6” (short for “Minna de After 6”), which promotes networking and team building across departments. In FY2023, about 100 communities and club activities were realized, with engaging activities including basketball, baseball, music, wine tasting, yoga, golf and running relay.
Relationship with regional communities
Preservation of employment and industries in regional communities
Our group contributes to the revitalisation of regional communities through our M&A services, playing our part to ensure the continuation and growth of companies, sustaining employment.
Our M&A intermediary activities provide economic benefits
Our strategic M&A support includes companies facing management issues such as the lack of a successor, which helps them maintain and increase levels of employment. We have made calculations of the economic impact of this, as described below
source: Yano Research Institute study
1.Basic information
Period
FY2022
Number of companies acquired *
486
Total revenues of acquired companies
¥307.1 billion
* Excluding oversea transactions and partial transfers
2.Level of Revenue saved and jobs preserved
Revenue saves (1 year)
¥346.8 billion
Jobs preserved (1 year)
28,805
3.Future economic benefit
Future economic benefit (3 years)
¥949.6 billion
Future economic benefit (5 years)
¥1.5139 trillion
Future economic benefit (10 years)
¥2.7185 trillion
Support for public institutions
Our company keenly contributes to the policy formation of public institutions.
Furthermore, within our own company we have an officer responsible for regional development, who is tasked with strengthening links to business continuity support centres in each region and contributing to the resolution of local issues associated with business succession.
Activities to support society and culture
Based on our belief that in addition to pursuing profit companies should contribute to social and cultural causes, we make donations to help the interests of society and the public, as well as supporting culture
Key activities
Helping local communities through foundations and NPOs Through making donations Nihon M&A Center gives support to foundations and non-profit organisations (NPOs) whose activities contribute to society.
In FY 2023 the sum of such donations was ¥58,753,130.
Supporting regional revitalization by using the corporate version of furusato nozei (hometown tax donations)
In March 2021, Nihon M&A Center signed an executive partner agreement with Imabari. Yume Sports K.K., which operates FC Imabari, to support its idea of "regional revitalization based on sports and businesses." As a regional revitalization partner, the company supports FC Imabari's activities, regional development, and human resources development. Nihon M&A Center Group has been donating to the Imabari City Government's project since FY2021 to construct FC Imabari Football Stadium (Satoyama Stadium Project), using the corporate version of furusato nozei (hometown tax donations).
Support for education and scholarship
In December 2023, we restructured our organization and established “Office for promotion of M&A research with academic, industry & government collaboration”. This organization is designed to serve the development of research for SME M&As through alignment with academia, and to make good use of its outcomes for drastic improvement of industrywide service quality.
The Company and Graduate School of Business Administration of Kobe University established Small and Medium Sized M&A Research and Education Center (MAREC) in 2022. We research on SME M&A with full-time researchers, and run endowed courses. MAREC broadly seeks application for grant-type research and prize essays, and energetically conducts activities to discover researchers outside government and to expand related areas of SME M&A research.
In addition, we provide “Training Course for Entrepreneur I,” an endowed course, in the School of Commerce of Waseda University every year since 2021. This course is designed to develop student entrepreneurs and venture business owners in terms of M&A, and in fact, has produced student entrepreneurs. The Business Model Contest, which takes place at the university every year, has a nearly thirty-year history, and the Company has sent judges.
We also began an endowed course at Graduate School of Management, Kyoto University in April 2024. Feedback on the outcomes of these initiatives is shared with the public in symposiums hosted by MAREC. The third symposium were held this September. As part of our efforts to broaden the base of M&A, we are conducting talks at elementary, middle, and high schools nationwide.
