M&A can turn a 3 billion yen company into a 10 billion yen company. How to survive in an era when the success rate is less than 40%?

VUILD management Inc. (Location: Kawasaki City, Kanagawa Prefecture; President: Shoichi Akiyoshi) is a "Management Power Improvement Organization by Business Field" (only 9 organizations in Japan) authorized by the Minister of Economy, Trade and Industry based on Article 26 of the Law for Strengthening Management of Small and Medium Enterprises, etc. As a specialized organization familiar with small and medium enterprises, VUILD management, Inc. As a specialized organization with expertise in SMEs, PMI submits proposals directly to the government and ministries and agencies in order to realize "serious wage increases for SMEs.

PMI

PMI has been making the following recommendations

The time has come for a serious reskilling of the management of small and medium-sized enterprises! Is it really OK not to learn the teachings of the world's greatest managers [the most powerful management to move people, as learned from Mr. Inamori and Mr. Nagamori]!

Strengthen the management of small and medium-sized enterprises through the "flow of human resources" of the early retired senior class of large companies!

We are also proposing that companies that cannot raise wages by 4% above the inflation rate should give up early and move to growing industries, industries with growth potential, and sectors with higher annual incomes!

We are pleased to present our new recommendations.

■ New Proposal:

Further growth and development of strong mid-sized and medium-sized companies is important to revitalize the Japanese economy.

M&A should be utilized to enable rapid growth and development.

However, the success rate of M&A is less than 40%, and now is the time for robust PMI and human resource development. We are pleased to introduce the method to the management team.

<This year's theme

The truth about the "M&A success rate of less than 40%.

～The key to success in M&A lies in "strong PMI" and "executive development.

Part 1: Many companies suffer after M&A - The real reason for the less than 40% success rate is a lack of "PMI human resources.

Part 2] Leaving M&A to M&A Brokerage Firms is Dangerous - Now is the Time to Promote Executive Development on Your Own

The key to seriously revitalizing the Japanese economy is how to increase the number of 3 billion yen and 10 billion yen companies. M&A is one of the most effective ways to achieve this goal. Strategic M&A by strong medium- and mid-sized companies can lead to industry restructuring and the revitalization of regional economies.

However, the success rate of M&A is actually less than 40%. PMI is an important process that maximizes synergies by promoting change, such as integrating corporate culture and integrating employees after an acquisition.

Many M&A brokers specialize in matching and do not support PMI, or have no intention of doing so. Now is the time to promote executive development on your own.

Part I: Many Companies Suffer After M&A - Lack of "PMI Human Resources" is the Real Cause of Less than 40% Success Rate

＜Background and Social Issues

The gap between large companies and small and midsize companies is widening: While large companies are expected to achieve a wage increase of 6% or more by 2025, only 9% of small and midsize companies will be able to achieve 6% or more. In addition, even though the government-industry-union and other labor-management councils emphasize "price pass-on," the harsh reality is that more than 70% of business owners are unable to calculate costs, which means that "price pass-on" is not progressing.

What the Japanese economy needs is to increase the number of "strong small, medium, and midsize companies," and M&A is attracting attention as one of the most effective ways to "become a growing company," which can lead to industry restructuring and regional economic revitalization.

In the budget for 2025, the government has announced a "Large-Scale Growth Investment Subsidy" of up to 5 billion yen for medium-sized companies (2,000 employees or less) and medium-sized businesses (500 employees or less), and a "Small and Medium Business Growth Acceleration Subsidy" (maximum subsidy of 500 million yen) to help medium-sized companies make the leap to the 3 billion yen or 10 billion yen level. The company has begun to support 3 billion yen companies and 10 billion yen companies.

This subsidy is different from previous subsidies in that new factories acquired through mergers and acquisitions for the purpose of expansion are also eligible for the subsidy, even if the land cost is not included. However, the adoption rate is strictly limited to around 15%, so please consult with a "management professional" such as our company.

In addition, the "Business Succession Subsidy," which has been increased to 8 million yen to promote M&A, will be open for applications from May 9. We will support you in obtaining the subsidy.

Please refer to the following for more information on "Government Support Measures for Growth and Development into a 3 billion yen to 10 billion yen Company". Please refer to the following page. Individual consultations are also available.

https://vuildmanagement.info/VUILDnews20250428

https://forms.gle/rWHxUVhA7owVKPjt6

＜What is the essence of M&A failure?

M&A is accelerating, but the success rate of M&A is only 36% according to the table "Success Rate of M&A" (quoted from Batons' seminar). Naturally, two companies with different corporate cultures are merging, and the following problems arise.

Incompatible corporate cultures Lack of management skills and ability to implement change

Conflicts in management style and self-esteem

Excessive unhealthiness of the partner company

M&A Success Rate

What is the true reason why the success rate of M&A is less than 40%?

However, the true cause is the M&A intermediary company that cannot (or will not) do PMI, as shown in Figure "Factors of M&A Failure! shows, despite the fact that companies expect PMI support, a shocking fact was revealed that only 33% of M&A intermediary firms provide PMI support, and 2/3 of M&A support organizations are unable to provide PMI support.

This is due to the fact that many M&A intermediary firms are success-fee-only matching entities, and M&A intermediary firms, including the annoyance of frequent telemarketing calls, should reflect on their morals.

The reason for M&A failure lies in M&A intermediary companies that cannot (or will not) do PMI!

● Limitations of leaving it up to M&A intermediaries

It is important for acquiring companies to develop human resources who can manage post-acquisition management in-house, rather than relying on moral M&A intermediaries who demand such high success fees.

Part 2: Leaving M&A to M&A Brokerage Firms is Dangerous

Now is the time to develop executives in-house.

In the absence of executive training programs that teach true PMI, we are pleased to introduce the one and only reskilling course where you can learn "practical PMI" directly from our president, who is also a "PMI professional".

A) Become strong in PMI to achieve dramatic growth through M&A [M&A professional training and executive training VUILD Juku].

It is the front-line managers and executives who are responsible for post-M&A integration. To truly succeed in PMI, it is essential to have human resources who can build a relationship of trust with the employees of the acquired company and rebuild the organization.

Our company representative, who is an instructor, is a "PMI professional" who has actually handled many PMI restorations, including PMI restorations. His first PMI experience was when he was asked to take over as president of a U.S. company that had posted a loss of 200 million yen after it was acquired from one of Japan's largest chemical companies. After that, he continued to perform the following as a manager and as a management consultant

(1) He led and succeeded in several M&As while he was president of a foreign-affiliated Japanese company.

(2) DD and PMI of 2-3 large chemical M&As at the request of a major consulting firm.

(3)PMI remediation including corporate culture development after M&A between a major U.S. water environment company and a well-established Japanese company

(4)Corporate culture reform at the request of a fund that acquired a transportation company that had been delisted due to window dressing

(5)Restructuring of a second-tier Toyota subcontractor at the request of the Corporate Restructuring Agency, ultimately leading to an amicable M&A.

(6)Obtained and supported a total of three business succession subsidies as a "Small and Medium Enterprise Agency M&A Support Organization

VUILD's "M&A executive development course" that trains in 3 months. The course is designed for participants to learn practical PMI methods from Akiyoshi, who has successfully restructured dozens of companies.

The main contents of the course are as follows

(1) Management mindset - learning from the great Japanese business leaders, Mr. Kazuo Inamori, Mr. Konosuke Matsushita, and Mr. Shigenobu Nagamori.

(2) "Management to move people" and "Management skills course to excite employees on the selling side" to learn the difficulties of PMI and moving organizations and people through case studies

(3)The secrets of successful M&A from Mr. Nagamori: "Pursue the reason for the leaning and turn it around.

(4)Focusing on developing executives who are strong in numbers, a course on developing executives who are strong in numbers to produce specific results such as increased operating profit within one year (portfolio analysis to dramatically increase profitability, etc.).

(5) Practical Business Management course to learn from successful cases and learn and acquire methods to maximize the advantages of the new organization (business after M&A) and synergy effects, and how to build a solid and feasible 5-year growth management that satisfies the average annual growth rate of 4% in labor productivity by making full use of Excel, etc.

Image of VUILD Juku for training M&A specialists and management executives

Start date: Tuesday, May 20, 2025

Period: Once a week for 3 months + individual tutoring)

Fee Price: 300,000 yen (per person)

　　　　　Campaign 30% discount until May 7

B) Seminar for Successful M&A: "No Successful M&A without Solid PMI

We will hold a free seminar for managers and executives, which we have held several times in the past, including the following topics. We invite all executives who are interested in learning more and who are serious about developing management team members who can build a strong PMI to attend.

(1) The reality of SMEs that cannot raise wages and the true reason why the M&A success rate is low

(2) Do you think ITOCHU can rebuild Big Motor?

(3)It is important to develop management executives who are strong in PMI (right-hand-management and left-hand-management development) in order to achieve dramatic growth through M&A.

(4) [VUILD Juku for M&A specialists to develop management executives

(5) Government subsidies ("Subsidy for Business Succession" and "Subsidy for Accelerating SME Growth") should be utilized.

This is a free seminar via Zoom.

Date and Time

5/1 (Thursday) 13:00-14:30

5/2 (Fri) 13:00-14:30

5/7 (Wed) 1:00pm - 2:30pm

5/9 (Fri) 1:00pm - 2:30pm

Other individual meetings are available for consultation.

Please fill out the form below.

We are looking for participants for the above seminar for managers to succeed in M&A and for the training course for management executives who are strong in PMI.

We will also send further materials to those who are interested.

Individual consultations are also available.

Please click on the form below.

https://forms.gle/T6Ui9a2r1nGnMje7A

PMI issues have an essence that only those who have been on the front lines of management can see.

If you want to know the key to success in M&A, please feel free to contact us.

https://forms.gle/T6Ui9a2r1nGnMje7A

The following is a summary of [government support measures for growth and development to 3 billion yen-10 billion yen companies]. Please refer to the following page. Individual consultations are also available, so please contact us for more information.

https://vuildmanagement.info/VUILDnews20250428

https://forms.gle/rWHxUVhA7owVKPjt6

Company Profile

Company name: VUILD management Inc.

Representative: Shoichi Akiyoshi, Representative Director

Establishment ：October 1, 2008

Location ：Kawasaki City, Kanagawa Prefecture

Business description: Management consulting, human resource development including training of next-generation management team, etc.

Originally an engineer (graduated from Waseda University, Faculty of Science and Engineering, TonenGeneral). He has not only served as president of two Japanese subsidiaries of an American company overseeing Asia, but also has experience and achievements in restructuring a medium-sized, well-established auto parts company.

He has already turned more than 20 small and midsize companies into highly profitable enterprises through his unique management methods, which have much in common with the Inamori Method for JAL's restructuring, and is active as a "professional in consciousness reform and corporate reform. He has already achieved a significant increase in profits, such as an 80 million yen increase in operating income over the previous year, by introducing the two pillars of "awareness reform" and "visualization of profits.

Authorized Organization for Supporting Management Innovation, etc.] (ID: 107214002112)

M&A Support Organization of Small and Medium Enterprise Agency (Registration No. 1868)

In June 2022, we were certified by the Minister of Economy, Trade and Industry as a "Management Power Improvement Promotion Organization by Business Field" as a support organization capable of providing guidance and support for all business field-specific guidelines based on the Small and Medium Enterprise Empowerment Act. (Only 9 organizations in Japan).

In September 2023, our "headhunting business for small and medium-sized enterprises in growing fields" was certified by the Ministry of Economy, Trade and Industry as a "career enhancement support business through reskilling".

Website: https://vuild-headhunting.com/