Due diligence: understanding risks and making the best choice

Due diligence in Japan: When considering partnership, investment in, or acquisition of a Japanese company it is essential to perform due diligence. Due diligence needs to include:

• financial due diligence (performed by accredited accountants)
• legal due diligence (performed by Japanese lawyers)
• general due diligence: understanding the real business situation of the company
• technology due diligence
• environmental and regulatory due diligence concerning the real estate or factories

We focus on technology and general due diligence, and we cooperate with licensed Japanese partners to conduct environmental and regulatory due diligence.

Since 1997 we have worked on many due diligence projects in Japan for acquisitions, partnerships and investments. Our projects include:

• In cooperation with Japanese partners performed environmental and regulatory due diligence on a pharmaceutical factory in Japan for our European customer who later acquired the pharmaceutical factory
• Advised an investment fund on technology and general due diligence of a company which had invented energy efficient fuel
• Advised a global investment fund on technology of companies producing software for mobile phones

M&A and partnering in Japan

1. M&A process
2. Understand the industry: research
3. Find and approach partners
4. Build cooperation
5. Stakeholders
6. Due diligence
7. Finance
8. Negotiate and close agreements
9. Post merger
10. Sale of a company by auction in Japan, or cross-border