Differences between the M&A Situation in Japan and the U.S.

The number of mergers and acquisitions involving Japanese companies has been increasing every year. However, very few M&A were conducted in Japan in the 1990s. Therefore, M&A is not a common business strategy for Japanese companies, and many companies have a strong resistance to selling their businesses or being merged.

When conducting M&A in Japan, it is necessary to proceed with caution. This article explains the differences between the M&A situations in Japan and overseas and the reasons why M&A is not as prevalent in Japan as it is overseas.

M&A situation in Japan.

The M&A situation in Japan differs from that in the U.S., and the number of cases is not as large as in the U.S.

In the U.S., there are many human resource development institutions such as law schools and business schools, and there are many human resources with theory and knowledge of M&A. However, there are no such schools in Japan. However, there are not as many such schools in Japan as there are in the U.S., so the reality is that there are not as many personnel who are well versed in M&A.

In addition, what is emphasized in business differs between Japan and the United States. In the U.S., where speed is required, M&A is generally utilized. However, even today, the basic idea of corporate management in Japan is a management strategy of building up a business from scratch. Therefore, even today, M&A is not being embraced in Japan compared to other countries.

Reasons why M&A is not as prevalent in Japan as in other countries

Lack of human resources familiar with M&A

When people in Japan hear the word “M&A,” they generally have a negative image of “hostile takeover,” “takeover,” or “mismanagement. In addition, there are still cases where M&A is misunderstood as a mere money game.

This situation is probably due to the lack of human resources familiar with M&A. In Japan, M&A-related human resources are expected to increase in the future, as well as the number of M&A professionals. In Japan, it is thought that the mistaken image and misunderstanding of M&A will disappear in the future, along with the enhancement of human resources. However, it is difficult for small businesses and companies in particular to prepare M&A personnel on their own, and it will be necessary to consider M&A methods with an eye toward outsourcing.

Culture Clash

Each company has its own culture, and we all know that the key to M&A is how to avoid this culture clash. This is especially true in Japan, where there is more resistance to M&A and foreign cultures than in other countries. It is also important to keep in mind that most Japanese people speak only Japanese.

What we can do to assist your M&A

We are a detective agency specializing in corporate investigations. We can conduct corporate reputation investigations. We can obtain highly confidential information that is not otherwise available. This information will assist you in planning your M&A strategy.

In past cases, we have conducted questionnaires and surveys of customers and former employees of the target company, revealing hidden aspects of the target company that have not been publicly disclosed.

In addition, detective agencies are particularly effective in mergers and acquisitions when they want to investigate a specific person in greater detail. A detailed investigation of a representative or a key person in an M&A may provide important information when determining future policies and strategies. Avoid M&A risks by hiring a detective with experience in corporate investigations.

Conclusion.

M&A of a company can be difficult and sensitive, especially in Japan where M&A is not yet common.

If you would like to hire our company, please let us know the name of the company you would like to investigate and the information you would like to obtain. We will suggest the most appropriate research method for your company.

There is no cost to you until we have a formal contract with you, so please do not hesitate to contact us.