Climate Change Data

Environmental Metrics

ESG Focus Areas

• Business succession M&A
• Sustainable economic growth of Japan
• Fair M&A practices
• Employee well-being
• Corporate governance

Social Achievements

• Contribution to the sustainability of the Japanese economy of over ¥1.6551 trillion (cumulative sales of transferred companies).
• Facilitating business succession M&A to maintain employment and contribute to local economies.
• Ranked 8th in the Forbes JAPAN Potential Ranking for 'Growth stocks expected to improve performance due to promotion of SDGs/ESG'.

Governance Achievements

• Maintaining a robust system of governance as one of the industry’s leading companies.

Climate Goals & Targets

Environmental Challenges

• Fewer deals closed in Q1 FY09/23 due to various factors including relocation to a new office.
• Relocation costs impacting short-term profitability.

Mitigation Strategies

• Expecting recovery over the full year due to increased consultants and active deals.
• Most cost increases are one-off expenses; profit margins expected to improve as sales rise.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 1: No Poverty

M&A activities contribute to job creation, economic growth, and poverty reduction through business succession and sustainable development.

Environmental Metrics

ESG Focus Areas

• Business succession
• Sustainable economic growth
• Fair M&A practices
• Employee well-being
• Corporate governance

Social Achievements

• Contribution to the sustainability of the Japanese economy of more than ¥1.6551 trillion.
• Nationwide broadcast of television program discussing case studies of M&A deals.
• Hosting of recruitment events aimed at hiring top talent.

Governance Achievements

• Maintaining a robust system of governance as one of the industry’s leading companies.

Climate Goals & Targets

Environmental Challenges

• Shrinking domestic market
• Intensifying competition
• Lack of successors for SMEs
• Concerns about cost and distrust of M&A support among SMEs

Mitigation Strategies

• Direct proposals to transferring companies
• Collaboration with government agencies
• Development of training programs for consultants
• Promotion of 'Fair M&A' practices
• Investment in DX to enhance productivity

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation and infrastructure
• Goal 11: Sustainable cities and communities

M&A activities contribute to job creation, economic growth, and sustainable development.

Awards & Recognition

• Ranked 8th in the Potential Ranking for ‘Growth stocks expected to improve performance due to promotion of SDGs/ESG’ by Forbes JAPAN.

Environmental Metrics

ESG Focus Areas

• Business succession
• Sustainable economic growth
• Fair M&A practices
• Employee well-being
• Corporate governance

Social Achievements

• Nationwide broadcast of television program discussing case studies of M&A deals
• Industry’s first sole-sponsorship program broadcast nationwide on terrestrial television
• New sole-sponsorship broadcast on terrestrial television in Kansai region
• Contribution to the sustainability of the Japanese economy of more than ¥1.6551 trillion.
• Maintaining a robust system of governance as one of the industry’s leading companies

Governance Achievements

• Maintaining a robust system of governance as one of the industry’s leading companies

Climate Goals & Targets

Environmental Challenges

• Shortage of successors for SMEs in Japan
• Economic losses due to business closures
• High number of companies without successors

Mitigation Strategies

• Providing M&A services to facilitate business succession
• Promoting 'Fair M&A' practices
• Working with the Small and Medium Enterprise Agency to address business succession issues
• Implementing DX strategy to improve matching ratio and efficiency

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities

M&A activities contribute to job creation, economic growth, and sustainable development.

Environmental Metrics

ESG Focus Areas

• Business Succession M&A
• Sustainable economic growth of Japanese companies
• Employee well-being
• Governance
• Fair M&A practices

Social Achievements

• Contribution to the sustainability of the Japanese economy of more than ¥2.0040 trillion (cumulative sales of transferred companies).
• Co-sponsored supplementary materials for career education promoted by the Ministry of Education, Culture, Sports, Science and Technology, explaining the social significance of M&A to elementary school students.
• Launched "Harebare," a campaign raising awareness of M&A among wives of company owners.

Governance Achievements

• Maintaining a robust system of governance as one of the industry’s leading companies.

Climate Goals & Targets

Environmental Challenges

• Declining number of deals closed year-on-year, particularly at RECOF due to lack of progress in winning new clients.
• Addressing the social issue of a large number of Japanese SMEs lacking successors and facing potential closure.

Mitigation Strategies

• Focus on large, highly profitable deals to offset the decline in overall deal numbers.
• Strengthening organizational structure for growth, including increased recruitment of consultants.
• Initiatives to raise awareness of M&A as a solution for business succession and growth, including collaborations with newspapers and television commercials.
• Development of professional teams specializing in high-demand industries.
• Strengthening matching abilities through alliances with financial institutions.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities

M&A activities contribute to job creation, economic growth, and reducing inequalities by supporting business succession and growth of SMEs.

Environmental Metrics

ESG Focus Areas

• Decent work and economic growth
• No poverty
• Good health and well-being
• Industry, innovation, and infrastructure
• Sustainable cities and communities
• Partnerships for the goals

Social Achievements

• Contribution to sustainability of Japanese economy since the Company was founded in 2005 (Total sales of transferred companies) over ¥2.0040 trillion
• Implemented M&A for business succession to maintain employment based on a stable foundation by ensuring the continuation of the business
• Developed industry through synergistic M&A, and created M&A nationwide to contribute to local economies
• Launched the second phase of a project to strengthen dissemination of information in all regions, and to earn referrals to transferring companies
• Created regional revitalization through its ability to make direct proposals and utilize demand for receiving business transfers in our alliance partners’ customer networks

Governance Achievements

• Maintaining a robust system of governance as one of the industry’s leading companies

Climate Goals & Targets

Environmental Challenges

• Sharp rise in suspensions and closures of SMEs in Japan
• The so-called “2025 problem” for SMEs is that there are around 1.27 million business owners without successors, and roughly 600,000 companies at risk of “black-ink bankruptcy”
• Decreased number of M&A in 2023

Mitigation Strategies

• Implement ESG initiatives through M&A-related service business
• Aiming to create companies with sales of ¥10 billion
• Promoting “Fair M&A” deals toward the realization of a sound future for the Japanese economy

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 17: Partnerships for the Goals

M&A activities contribute to economic growth, job creation, and sustainable development.

Awards & Recognition

• 48th Keizaikai Grand Prize for Excellence in Management

Environmental Metrics

ESG Focus Areas

• Business Succession
• Economic Growth
• Sustainable Development
• Governance

Social Achievements

• Contribution to the sustainability of the Japanese economy since 2005: ¥2,316.1 billion (cumulative sales of transferring companies)
• Effect on maintaining economic activity in FY2024: ¥312.1 billion (total sales of transferring companies)
• Effect on maintaining employment in FY2024: 15,703 people (total employees of transferring companies)

Governance Achievements

• Established material ESG issues with a focus on SDGs in November 2021.
• Maintaining a robust system of governance as one of the industry’s leading companies.

Climate Goals & Targets

Environmental Challenges

• Sharp rise in suspensions and closures of SMEs in Japan, potentially leading to a loss of ¥22 trillion in GDP by 2025.

Mitigation Strategies

• Implementing ESG initiatives through M&A-related service business to help achieve a sustainable society.
• Facilitating business succession through M&A.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 17: Partnerships for the Goals

M&A for business succession to maintain employment, develop industry through synergistic M&A, create M&A nationwide to contribute to local economies, create a work environment that supports sustainable growth and self-realization for outstanding consultants, and cooperation with government agencies.

Environmental Metrics

ESG Focus Areas

• Economic activity maintenance effect and employment maintenance effect
• Sustainable future creation
• Solving social issues
• Business succession M&A
• Contribution to regional economy
• Sustainable growth and self-realization
• Governance system maintenance

Social Achievements

• Achieved over 2 trillion yen in economic activity maintenance effect since 2005.
• Maintained employment for 17,506 people in FY2023.

Governance Achievements

• Established the M&A Brokerage Association in October 2021.

Climate Goals & Targets

Environmental Challenges

• Lower-than-expected number of large-scale deal closures.

Mitigation Strategies

• Careful examination of the timing of deal closures, focusing on large-scale projects.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities

Contribution to sustainable development through business succession M&A and regional economic contribution.

Environmental Metrics

ESG Focus Areas

• Business Succession M&A
• Economic Activity Maintenance
• Employment Maintenance
• Sustainable Society

Social Achievements

• Achieved over 2 trillion yen in economic activity maintenance effect since 2005.
• Maintained employment for 17,506 people in 2023.
• Established the M&A Brokerage Association in 2021 to promote ethical practices and industry self-regulation.

Governance Achievements

• Established the M&A Brokerage Association in 2021 to promote ethical practices and industry self-regulation.
• Maintained a high level of corporate governance.

Climate Goals & Targets

Environmental Challenges

• Decreased revenue and profit due to a lack of extremely large-scale projects compared to the previous year.

Mitigation Strategies

• Increased the number of consultant hires.
• Expanded the pipeline of large-scale projects.
• Secured a record-high number of entrusted projects.
• Strengthened organizational structure for long-term growth.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities

M&A activities contribute to economic growth, job creation, and sustainable development.

Environmental Metrics

ESG Focus Areas

• Business Succession
• Economic Growth
• Employment Maintenance
• Sustainable Development
• Governance

Social Achievements

• Contribution to the sustainability of the Japanese economy since 2005 exceeding ¥2.0 trillion (cumulative sales of transferring companies).
• Effect on maintaining economic activity in FY09/23: over ¥348.9 billion (total sales of transferring companies).
• Effect on maintaining employment in FY09/23: 17,506 people (total employees of transferring companies).

Governance Achievements

• Established material ESG issues incorporating an SDG perspective.
• Became a founding member of the M&A Intermediaries Association, establishing a Code of Ethics and three self-regulatory rules for the industry.

Climate Goals & Targets

Environmental Challenges

• Shrinking domestic market and intensifying competition.
• Aging company presidents and lack of management successors in SMEs.
• Increasing number of business closures and bankruptcies among SMEs.

Mitigation Strategies

• Proactive M&A strategy and alliance strategy leveraging retained earnings and cash.
• Collaboration with Deloitte Tohmatsu Consulting LLC for PMI support.
• Business alliances with financial institutions and newspaper publishers to expand reach and secure deals.
• Focus on M&A for business succession.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 8: Decent Work and Economic Growth
• Goal 17: Partnerships for the Goals

Initiatives contribute to these goals through business succession M&A, economic growth, employment maintenance, and sustainable development.

Environmental Metrics

ESG Focus Areas

• Economic activity maintenance
• Employment maintenance
• Sustainable future
• Contribution to solving social issues
• Business succession M&A
• Regional economic contribution
• Governance

Social Achievements

• Achieved over 2 trillion yen in economic activity maintenance effect since 2005.
• Maintained employment for 15,703 people in 2024.
• Contributed to regional economies through M&A creation nationwide.

Governance Achievements

• Established the M&A Brokerage Association (自主規制団体) in 2021 to promote fair and safe M&A practices.
• Implemented initiatives to prevent unfair M&A transactions and further enhance industry integrity.

Climate Goals & Targets

Environmental Challenges

• Rapid increase in business closures and bankruptcies among SMEs in Japan, potentially leading to significant GDP loss.

Mitigation Strategies

• Contributing to solving this major social issue through business succession M&A.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure

M&A activities contribute to economic growth and job creation, supporting sustainable development.

Environmental Metrics

ESG Focus Areas

• Business Succession M&A
• Economic Activity Maintenance
• Employment Maintenance
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Achieved over 2 trillion 316.1 billion yen in economic activity maintenance effect since its founding in 2005.

Social Achievements

• Maintained employment for 15,703 people through business succession M&A in FY2024.
• Contributed 312.1 billion yen to economic maintenance effect in FY2024.

Governance Achievements

• Established a governance system as a leading company in the industry.
• Only two lawsuits in 56 years of history (MACP and RECOF combined).

Climate Goals & Targets

Environmental Challenges

• Rapid increase in business closures and bankruptcies of SMEs in Japan, potentially leading to a significant loss of GDP.
• Increasing number of companies facing succession issues due to aging business owners and lack of successors.

Mitigation Strategies

• Focusing on business succession M&A to address the social issue of business closures and maintain economic activity.
• Actively approaching companies with business succession needs to contribute to sustainable development.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure

Business succession M&A contributes to economic growth and stable employment, while synergy-driven M&A promotes industrial development.

Environmental Metrics

ESG Focus Areas

• SDGs
• Business Succession
• Economic Growth
• Employment Maintenance
• Sustainable Society

Social Achievements

• Contribution to the sustainability of the Japanese economy of more than ¥2.0 trillion since the company's founding.
• Maintained employment of 15,703 employees in FY09/24 through business succession M&A.
• Implemented M&A for business succession to maintain employment.

Governance Achievements

• Established material ESG issues with a focus on SDGs in November 2021.
• Maintaining a robust system of governance as one of the industry’s leading companies.

Climate Goals & Targets

Environmental Challenges

• Sharp rise in suspensions and closures of SMEs in Japan, potentially leading to a loss of ¥22 trillion in GDP by 2025.
• Increasing average age of company presidents and lack of successors in many organizations.

Mitigation Strategies

• Implementing M&A for business succession to address the issue of business closures and bankruptcies.
• Focusing on M&A related business, with business succession M&A as the core to address succession planning challenges.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 17: Partnerships for the Goals

M&A for business succession to maintain employment, economic development through synergistic M&A, and creating a work environment that supports sustainable growth and self-realization for consultants.