We work with Foreign Companies to invest in or acquire Japanese companies and we work with Japanese companies on overseas acquisitions and investments
Download the presentation on cross border M&A with Japan (pdf file) and register here to receive our newsletters:
Acquiring a Japanese company
The number of mergers and acquisitions in Japan is considerably lower than in Europe and in the USA, but rapidly rising.
Partnering, investing in, and acquiring Japanese companies are options for foreign companies to break into Japan’s market, to expand business in Japan and to acquire Japanese technologies – especially manufacturing technologies.
Thorough preparations and a carefully structured and systematic approach reduces risks and increases the chances of success:
- M&A process
- Understand the industry: research
- Find and approach partners
- Build cooperation
- Due diligence
- Negotiate and close agreements
- Post merger
Starting point is a thorough understanding of our clients business plan and strategy for business expansion and investments in Japan and globally. We assign a team of experts. We will search thoroughly for potential Japanese partner companies – in some cases this may mean compiling and profiling 300 or 500 companies. We will then prepare a shortlist of about 10 companies which we will analyze in detail and prepare a ranked shortlist.
In cooperation with our customer we will prepare a detailed understanding of the circumstances of top-ranked companies and will work with the customer on preparing partnership, investments or acquisition.
Japan investments – track record:
- Assisted a French pharmaceutical company to acquire a pharmaceutical factory in Japan
- Advised NTT-Communications international M&A team on strategy and opportunities for many industry sectors in Europe
- Performed technology and general due diligence on a Japanese energy efficient fuel company
- For an US industrial company, we analyzed the ASIC chip design market in Japan and searched for suitable cooperation, investment and acquisition partners
Japan investments – due diligence
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.
- 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