SERVICE
- Cross-border M&A
（mainly in Asia） - You find it difficult to realize business growth in Japan. You want to look for growth opportunity in emerging markets such as Asia. Having said that, do you have any concerns about setting up an overseas presence but having difficulty in getting it rolled out and turning it into a profitable business?
As professionals in the field of overseas expansion support, we have ample experience in helping clients in such situations. As a solution, we recommend and assist Asian companies with a turnaround of up to around 2 billion to execute M&A. There are many business succession projects in Asia. By utilizing our network in Asia, we can help you acquire a profitable small to mid-sized company in a short period of time and increase your chances of success in business in emerging countries.
- DD Coordination Support
for Overseas M&A - In cross-border M&A, some Japanese M&A firms charge huge M&A fees only for matching transaction needs. However, M&A is not only a matching process; it also takes a considerable amount of time to calculate value, conduct due diligence, and draw up a share transfer agreement. In addition, negotiations may not be concluded well and transactions be cancelled when new issues are unfolded.
We also provide a standalone “DEAL practice arrangements” support service, utilizing our network we have built up and assigning such overseas experts to compile subsequent written opinions and carry out subsequent coordination.
- Domestic ・ Overseas M&A Information Service Global Gate M&A
- Global Gate has a network of M&A-related institutions around the world , including Japan , and collects and provides fresh M&A information both domestically and internationally .
- Tie-up with overseas financial institutions .
- More than 400 regular projects
WORKS
Achievements Support
- 01
- Support for the acquisition of a building maintenance and cleaning company in Singapore
A mid-sized Japanese building maintenance company realized their limit in developing business in Japan and wanted to expand into overseas markets. However, as this was their first overseas expansion and they lacked the know-how and human resources, they consulted with us. At first, they were looking into establishing a local presence but they didn’t have the required staffing in market expansion. After confirming our company’s current situation and visions, we introduced and set up an M&A deal with a building maintenance and cleaning company in Singapore, which had a good set of business partners and human resources, and had been profitable for some time. Such arrangement was preferrable as this would be its first overseas expansion. The target company incorporates cutting-edge cleaning technology and has established a scheme to utilize foreign nationals from neighboring Asian countries. Considering our client’s possible affinity and synergy with the building maintenance and cleaning business in Japan, we started acquisition negotiations and concluded the deal.
As a result, our client have secured billions of yen in sales and stable earnings from overseas operations on a consolidated basis, and their business performance has been favorable even during the COVID pandemic period.
Throughout this project, we provided full support such as formulating the business plan, listing up M&A companies, and carrying out on-site attendance, negotiation, DD, practical business, and documentation support.
- 02
- Acquisition of foreign companies to adjust sales portfolio
A major automotive parts manufacturer wanted to expand sales to non-automotive industries and break away from its dependence on the automotive industry, as its sales portfolio was heavily weighted toward the automotive industry. Since the company had a high ratio of overseas sales, we searched for overseas M&A opportunities and introduced a company with a sales company in Singapore and a manufacturing subsidiary in Indonesia. We found that the target company manufactured parts related to food machinery in Indonesia, and sold them to other countries from Singapore, and that it produced parts to which our client’s technology could be applied. We began negotiations with the target company and eventually succeeded in acquiring it. Our client was able to acquire a company with sales of approximately 1 billion yen and stable earnings, contributing to a certain degree in modifying our client’s business portfolio. Throughout this project, we provided full support such as listing up M&A companies, and carrying out on-site attendance, negotiations, DD, practical operations, and documentation support.
FLOW
Flow from order to contract
- STEP01
- Teaser Disclosure
You will receive a project outline (Teaser) with initial information. Please review the contents.
- STEP02
- NDA Conclusion
If you are interested in the contents, we will conclude an NDA (Non-Disclosure Agreement).
- STEP03
- Information
Disclosure
After concluding the NDA, we disclose information in two phases. If you are interested in acquiring more information after the initial disclosure, we will disclose more detailed information.
- STEP04
- Interview
If you are interested in the project during the initial review, we will set up a top-management meeting. We will be available for questions and answers.
- STEP05
- Signing of Letter of Intent to Invest
If we proceed further, we will conclude a Letter of Intent (LOI). We will disclose the information for DD.
- STEP06
- DD, Valuation
A DD vendor (lawyer/accountant) is appointed to execute due diligence and valuation.
- STEP07
- Documentation
An Underwriting Contract for Third-Party Allotment is prepared.
- STEP08
- Signing
An Underwriting Contract for Third-Party Allotment is signed.
- STEP09
- Settlement
Settlement is executed in accordance with the agreement.
FAQ
Q&A
- When can I consult with you about an issue/project?
- Consultation os possible from the initial stage of considering overseas expansion or cross-border M&A. If you have any concerns at any stage during the M&A process, please feel free to contact us at any time.
- When do fees begin to accrue?
- The “contract fee” for M&A is charged at the time of signing the contract after signing an NDA with us, after disclosing detailed information, and after meeting with the seller, etc. However, the timing of the fee can be discussed depending on the situation. In many cases, we do not charge a contract fee for domestic projects. An “interim fee” is charged when the buyer submits a Letter of Intent (LOI) and the seller formally accepts the LOI. This occurs for both domestic and overseas projects.
- Our China business is stagnant and we are considering revitalization or withdrawal. Do you provide such consultation?
- Of course we do. Whether you want to find a distributor in China to strengthen your sales, to reinforce your Chinese staff to leverage your China business, or to sell or exit after a certain period of time, we can work with you. We can also assist operation withdrawal for large and small businesses. In addition, if you are considering relocating your factory to Asia as an alternative to your China business, we can assist you with both M&A and start-up from scratch. We have extensive experience in concurrent projects.
- We are preparing for a business succession and do not have the personnel to manage our overseas offices, so we would like to sell them before the business succession. Do you provide such support?
- In many cases, Japanese companies buy subsidiaries of Japanese companies, and we are able to access and market to potential acquirers through a variety of channels in Japan. At the same time, we are able to approach local companies to sell their subsidiaries to us. We are one of the few consulting and FA firms that have access to both Japanese and non-Japanese companies and can provide consultation in Japan.
- Sales in Japan are slowing down and we would like to increase our sales overseas. We would like to develop distributors and build a sales channel network, but do not know how to proceed.
- We make a list of applicable companies in the target countries and contact them by phone, e-mail, etc. to see if they are interested in becoming a distributor. If any of those companies are interested, we will set up a business meeting. Our lawyers will draft the contract, but we can provide support in the aspects leading up to the contract.
PRICE
Price list
- M&A contract amount ※1
- Overseas projects (varies by region)
- Contract fee
- 0.5~1 million yen
- Interim operations payment ※2
- 1~3 million yen
- Retainer fee
- 0.5~1 million yen
- 0-50 million yen portion
- 7.0 million yen
- 50 million yen – 100 million yen portion
- 7.0 % – 8.0 %
- 100 million yen – 300 million yen portion
- 6.0 % – 7.0 %
- 300 million – 500 million yen portion
- 5.0 % – 6.0 %
- 500 million yen – 1 billion yen portion
- 4.0 % – 5.0 %
- 1 billion yen – 5 billion yen portion
- 3.0 % – 4.0 %
※１ M&A contract amount: based on the larger of the stock transfer contract or the moving asset amount
※２ Business Interim Payment: Accrues upon formal receipt of Letter of Intent to Invest (LOI) by the seller
