Founder and CEO of Tokyo-listed M&A Research Institute, Shunsaku Sagami, has found success in the mergers and acquisitions industry by leveraging AI technology to gain a competitive edge. Now, the 33-year-old entrepreneur is looking to replicate his success abroad, aiming to help local companies expand overseas and aid international companies in entering the Japanese market. Sagami’s company is one of Japan’s top four listed SME M&A firms, having almost doubled the number of M&A deals closed in the past six months. Despite facing challenges such as increased oversight in the industry, Sagami remains optimistic about the future of his business.
Sagami’s success is attributed to various factors, including an AI algorithm for matching sellers with buyers, proprietary software for digitizing paperwork, a simplified fee structure, and aggressive hiring practices. These strategies have allowed M&A Research Institute to outperform its competitors in terms of earnings growth and the number of successful transactions per advisor. The company’s use of data to improve productivity has been seen as revolutionary in the labor-intensive process of M&A sourcing and execution.
Japan’s SME sector, which accounts for a significant portion of the country’s companies and jobs, is facing a succession issue as many owners are aging with no successors lined up to take over their businesses. Sagami’s company focuses on companies with up to ¥500 million in revenue, particularly in sectors like manufacturing, construction, information technology, and wholesale and retail. By helping these SMEs navigate the M&A process, M&A Research Institute is playing a crucial role in ensuring the continued success of these businesses.
Despite facing challenges such as slowing revenue and net profit growth in recent years, M&A Research Institute remains confident in its ability to grow and adapt to changing market conditions. The company’s expansion into cross-border deals, especially in the US and Southeast Asia, comes at a time when Japanese outbound M&A is on the rise. By tapping into international markets, Sagami is positioning his company for continued success and growth in the coming years.
Sagami’s journey into the world of M&A was influenced by personal experiences, including observing his grandfather’s struggles with succession in his real estate business and his own experiences in selling a startup. His background in design, engineering, and marketing has equipped him with the skills to navigate the complex world of mergers and acquisitions. Sagami’s passion for Mahjong also plays a role in his approach to business, as he sees similarities between the strategic thinking required in the game and running a company.
As M&A Research Institute continues to innovate and expand, Sagami remains focused on his goal of changing legacy industries through technology. Despite facing challenges in the form of increased industry oversight, Sagami is determined to lead his company to become a leader in the industry. By leveraging AI technology, simplifying the M&A process, and expanding into international markets, Sagami is positioning his company for continued success and growth in the competitive world of mergers and acquisitions.
