Japan M&A and foreign direct investment – as an option for market entry and growth in Japan

Japan M&A and direct investment (FDI) transactions. We help you reduce your risks

Acquiring Japanese companies for market entry or growth in Japan

Japan M&A: Our company, Eurotechnology Japan, has been working for many years on mergers and acquisitions involving Japanese companies. As examples, Eurotechnology-Japan worked with NTT-Communications global M&A team on the acquisition and partnership strategy for Europe, or as another example, we worked with a French pharmaceutical company on the acquisition of a Japanese pharmaceutical factory. Our work included managing the environmental and regulatory due diligence and negotiation support during the negotiations leading up to closing the transaction.

A carefully planned M&A process reduces the risks and helps avoid the costs of failure

In our experience most cross-border acquisitions with Japan will include all or most of the following steps:

  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

Japan M&A – the rationale

With about YEN 80 Trillion (US$ 800 billion) cash liquidity on hand, and a stagnating home market, Japanese companies are very active in acquiring and investing in overseas companies in order to acquire market access, customer relationships and technologies. Acquisitions also help Japanese companies to accelerate the pace of globalization.

For foreign companies, investments in or acquisition of Japanese companies can be an important path for market entry and growth in Japan.

Japan to Europe direct investments and M&A

Japanese investments and acquisitions in Europe are progressing at a rapid pace, currently Japanese companies are investing or acquiring European companies at the rate of around EURO 10 billion per year.

Europe to Japan direct investments and M&A

European investments in Japan are substantial, the European investment stock in Japan totals around EURO 90 billion and is steady. European investment flow into Japan currently is quite low.

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