Buying a company is no easy task and doing so in Japan is no different.With Capital Bridge Japan as your partner we can not only help you find the right company but also help in the process of your strategy with your Japanese counterpart.This article helps you understand the ways of buying a business in Japan.
Buying a Japanese Company
Acquiring a business in Japan from an outsider’s perspective seems like a daunting task. While large companies with cross border M&A transactions require extensive procedures and regulations, the SME segment generally does not. The world of Japanese M&A and business brokerage may seem closed to the foreign world due to both cultural and language barriers. But we at Capital Bridge Japan want you to be aware of what is involved.There are generally four options in acquiring a Japanese firm:
Share Sale Merger Asset Sale Business Transfer
We not only provide an M&A platform but we can also find your target company via custom research.We are M&A professionals and consult from start to closing.
A brief explanation on different approaches to buying a Japanese company.
The foreign firm will acquire the shares of the target Japanese firm. This allows the buyer to have all the assets of the company. It should be noted that a share sale includes all of the liabilities of the company. For assets or segments that need to be disposed of may need to be done at the post-acquisition stage.
International Merger With approval of the board and shareholders this may be possible but requires extensive regulatory and compliance procedures. It should also be noted that acquisitions are sometimes called mergers to remove the stigma of being bought out.
With approval of the board and shareholders this may be possible but requires extensive regulatory and compliance procedures. With the unification of stocks there might be extra complications due to different jurisdiction laws being in place. This process might be possible if the overseas company has operations already in place in Japan with joint stock company (or wholly owned subsidiary) .It should also be noted that acquisitions are sometimes called mergers to remove the stigma of being bought out.
The buy-side company wants to acquires a particular asset that needs to be separated from the target company. This purchase type allows the acquiring company to not take on liabilities of the target firm. Due to the nature an asset sale may have more complexities than purchasing shares of a target company. In terms of acquiring real estate the process might be simpler due to structures where a real estate portfolio is held as a corporate entity.
Like the above mentioned asset transfer. The acquiring company chooses to acquire a particular business for example the logistics arm of a company. With this acquisition type both assets and liabilities are acquired. In larger firms divestment schemes are generally used for a transaction of a company division or that of a subsidiary.
We at Capital Bridge Japan, with years of experience can support you with your M&A strategy into Japan.We can determine the best course of action, introduce companies and develop a strategy to fully maximize your market entry or expansion.