INTERVIEW: Nihon M&A to Strengthen Successor Search Biz

Tokyo, March 13 (Jiji Press)–Nihon M&A Center Holdings Inc. intends to strengthen its successor search business by teaming with more regional banks across Japan through a subsidiary, President Suguru Miyake said in a recent interview. The subsidiary, J-Search Inc., connects prospective business owners with smaller companies struggling to find successors through funds formed with regional banks. “As young people with excellent education take over businesses, the surrounding (regional economies) will also change,” Miyake said. J-Search has established funds with North Pacific Bank in the northernmost prefecture of Hokkaido, Hokuriku Bank in the Hokuriku central region, Juroku Bank in the Tokai central region, Awa Bank in the Shikoku western region and Higo Bank, Kagoshima Bank and Miyazaki Bank in the Kyushu southwestern region. Nihon M&A “wants to expand into other regions steadily,” Miyake said. The number of merger and acquisition deals involving small and midsize companies has been on the rise amid labor shortages reflecting the country’s aging and shrinking population. “Taking over (smaller companies) for now, making them grow and eventually selling them to appropriate successors is also a very important role to play,” he said. As for the mainstay M&A support business, Miyake said his company looks at business opportunities in all directions. Because business closures in regional areas can sway the economies there, even owner-operated taxi services are one of the areas that need to be saved through M&A deals, he said. Foreseeing an increase in exits from the Tokyo Stock Exchange due to tightened listing criteria, Miyake expressed eagerness to offer support services not only to smaller businesses but also to listed companies. END [Copyright The Jiji Press, Ltd.]