M&A Capital Partners Co.,Ltd.

Equities

6080

JP3167320005

Investment Banking & Brokerage Services

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-05-31 EDT			5-day change	1st Jan Change
2,157 ^JPY	+5.27%		+4.71%	-11.31%

01-30	M&A Capital Partners Co.,Ltd. Reports Earnings Results for the First Quarter Ended December 31, 2023	CI
2023	M&A Capital Partners Co.,Ltd. Announces Plan to Begin Paying A Dividend from the End of September 2023	CI

M&A Capital Partners : Presentation Materials for the Earnings Briefing for the Nine Months Ended June 2020

August 14, 2020 at 03:03 am

M&A Capital Partners Co., Ltd.

Presentation Materials for the Earnings Briefing for the Nine Months Ended June 2020

Aiming to be the world's leading investment bank seeking maximum contributions to clients and the happiness of all employees

July 30, 2020

Table of Contents

I	Company Overview and Strengths of the	・・・ 2
Company

	Results for the Nine Months Ended June 2020
II	and Forecast for the Year Ending September	・・・ 10
	2020
III	Growth Strategy	・・・ 21

Company Overview and Strengths of the Company

Company Overview

Trade Name	M&A Capital Partners Co., Ltd.

Listed Market	Tokyo Stock Exchange First Section	(Securities Code: 6080)

Address	38F, Gran Tokyo North Tower,1-9-1 Marunouchi, Chiyoda-ku, Tokyo

Business	M&A-related services
Content

Representative	Satoru Nakamura, President and Representative Director

Established	October 2005

Capital	2,503 million yen (as of June 30, 2020)

Employees	Consolidated:180 Non-consolidated:	105 (as of June 30, 2020)

Affiliates	RECOF Corporation, RECOF DATA Corporation

Management	Aiming to be the world's leading investment bank seeking maximum
Philosophy	contributions to clients and the happiness of all employees
		Copyright © M&A Capital Partners Co.,Ltd. All rights reserved.	3

Business Content

Characteristics

Business Model

M&A-related services are our main business.

Mainly business succession M&A. We propose solutions through M&A and support their realization for owner managers who have concerns about business succession.

We provide advisory services for the realization of M&A standing between the transferor (seller) and the transferee (buyer) from an independent and impartial position.

Owner of

transferred company (seller)

Successor issues

No successor

Aging president

Uncertainty about business

Shrinking domestic market Intensifying competition


	M&A Capital
	Partners
Provision of	(Intermediation)	Provision of

advisory		advisory

services		services
Interim fee		Interim fee
Contingency		Contingency
fee		fee

Transfer of shares and businesses

Payment of consideration for the transfer

Transferee

(buyer)

Intensifying

competition in

existing business

due to shrinking

market

Global competition

We aim to be the world's leading investment bank

We aim to make the greatest contribution to clients by creating M&A deals with abundant information and an expansive network, and solving problems with the know-how we have accumulated.

	Industry
Business	reorganization
succession M&A	M&A

Cross-border

CommunicationM&A

ability

Creation of a new organization and expansion of business areas for the sustainable growth of the Group

Group Synergies

Enhancement of matching utilizing the strong relations with clients built through reorganization of the industry
Decrease in missed deals by improving ability to respond to complex schemes

Absorbing M&A Capital Partners' know-how to actively expand business succession market
Companywide improvement of earning capacity through revision of sales operations

RECOF

Increase expected

				M&A Capital Partners	Outbound

2013	2014	2015	2016		marketing	Future image

The Company's Strengths 1 - (1)

Fee structure that is convincing for clients

(1) Contingency fee-based fee structure (No commencement fee or monthly fee)

Fee schedule in which clients do not bear expenses until the conclusion of a Memorandum of Understanding

Expenses Required in the Consideration Phase

	The Company	M&A intermediary	Large securities
	business A	company B


Commencement fee	Free	Paid	Paid
Calculation of	Free	Paid	Paid
company value

Monthly fee	Free	Free	Paid

The Company's Strengths 1 - (2)

Fee structure that is convincing for clients

Use of fee based on share price
- Fees of an M&A intermediary company generally use the Lehman Formula (calculated by multiplying the transaction amount by a certain rate)
- The company's calculations of fees are based on the share value. This is more convincing than being based on the moving average of total assets

[Example] A company with share value of 500 million yen and

1.5 billion yen of debt

Fee Structure (Lehman Formula)

M&A Capital

Partners

Calculated

based on the

500 million yen

share value

Fee

25 million yen

Debt

1.5 billion yen

Share value

500 million yen

Fee is

triple the

amount

Competitors

Calculated

based on the 2

billion yen of

total assets

moved

Fee

75 million yen

The general Lehman Formula rates used by major financial institutions.

Transaction amount	Commission
rate

Up to 500 million yen	5%

500 million yen up to 1 billion yen	4%

1 billion yen up to 5 billion yen	3%

5 billion yen up to 10 billion yen	2%

Over 10 billion yen	1%

e.g.) Calculation of fee when the transaction amount is 2 billion yen

500 million yen x 5% = 25 million yen

(1 billion yen - 500 million yen x 4% = 20 million yen
- (2 billion yen - 1 billion yen x 3% = 30 million yen 75 million yen

Cumulative Number of Deals Made

The Company's Strengths 2

Stable Results Making Deals

M&A Capital Partners has produced stable results making deals by focusing on "business succession M&A proposals and advice" for small and medium enterprises using share transfers or business transfers.

Through the business integration with RECOF Corporation and RECOF DATA Corporation, we will promote M&As to solve challenges like business succession, growth strategies, and industry reorganization, and will strive to become a diversified M&A group that caters to various needs.

800

700

600

500

400

300

200

100

686 deals

596 deals

452 deals

337 deals

226 deals

168 deals

124 deals

89 deals

68 deals

50 deals

37 deals

Sep 2010

Sep 2011

Sep 2012

Sep 2013

Sep 2014

Sep 2015

Sep 2016

Sep 2017

Sep 2018

Sep 2019

June 2020

(Non-

(Consolidated)

consolidated)

Results for the Nine Months Ended June 2020 and Forecast for the Year Ending September 2020

Number of Deals Made

	3Q(cumulative)	Forecast for the year	Progress for Entire Year

Number of deals	90	172	52.3%
(consolidated)

			Number of Deals Made
180
170										172 deals
160
150									144 deals
140
130
120								115 deals
110							111 deals

100
90										[3Q]
80										(cumulative)
									90 deals
70						58 deals
60									[2Q]

50					44 deals					(cumulative)
								61 deals
40				35 deals
30	13 deals 18 deals	21 deals
20							[1Q]
10										23 deals
0	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	As of June

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
		(Non-consolidated)			(Consolidated)

-15.9%Year-on-year
Some deals fell behind schedule due to the impact of novel coronavirus, and results did not reach previous-year levels.

[Non-consolidated]

M&A Capital Partners 72 deals (-24.2 % year-on-year)

RECOF 18 deals

(+50.0 % year-on-year)

- Meanwhile, the number of deals handled (non- consolidated) decreased rapidly to 229 until after the Golden Week holidays from the end of April to the beginning of May due to the impact of novel coronavirus, but quickly recovered to 272 (+13.8% year-on-year) due to strengthening of sales activities after the lifting of the state of emergency.

We plan to make up lost ground in 4Q to reach our target for the whole year.

Earnings Highlights (Consolidated)

Earnings for the Nine Months Ended March 2020 (Consolidated)

Net sales Ordinary income Number of deals Number of consultants

8,375 million yen

3,520 million yen

90 deals

135

(-15.5%year-on-year)(-25.4%year-on-year)(-15.9%year-on-year) (+18 year-on-year)

Some deals were delayed compared to the anticipated schedule due to the impact of novel coronavirus, which caused results to fall below previous-year levels.
14 large deals closed (-33.3%year-on-year)
Meanwhile, advances received,* which is a reference indicator for back orders, accumulated steadily to a record level of 550 million yen (+62.5% year-on-year).
We will continue to focus on the impact of novel coronavirus going forward, but plan to make up lost ground in 4Q to reach our target for the whole year.

*Advances received: consists mainly of the total of interim payments (10% of fees) received when a Memorandum of Understanding is concluded

Earnings Highlights (Non-consolidated)

Earnings for the Nine Months Ended March 2020 (Non-consolidated)

	M&A Capital Partners	RECOF

		Year-on-year		Year-on-year
		Change		Change
Net sales	6,917 million yen	-21.5%	1,427 million yen	+45.1%

Ordinary income	3,281 million yen	-32.0%	390 million yen	+424.6%
Number of deals	72	-24.2%	18	+50.0%

Number of consultants	86	+14	49	+4

Some deals were delayed compared to the anticipated schedule due to the impact of novel coronavirus, which caused results to fall below previous-year levels.
11 large deals closed (-42.1%year-on-year)

- Results significantly exceeded previous- year levels due to the impact of novel coronavirus being kept to a minimum and the number of deals increasing year-on- year.

- 3 large deals closed (+50% year-on-year)

Because non-consolidated information is shown, consolidated amortization of goodwill (169 million yen) due to business integration is not included.
We have omitted listing Group companies of relatively low importance.
The figures for RECOF are consolidated figures including RECOF Vietnam Co., Ltd.

Number of Deals Handled (Non-consolidated)

Units : Deals Number of Deals Handled (Non-consolidated)

300

274 273 272

250					239
200	214	220	224	228	226

197

172 175

150 127 139 155 149

100 109

ended

Jun 30,

Sep 30,

Dec 31,

Mar 31,

Jun 30,

Sep 30,

Dec 31,

Mar 31,

Jun 30,

Sep 30,

Dec 31,

Mar 31,

Jun 30,

Sep 30,

Dec 31,

Mar 31,

Jun 30,

2016

2017

2018

2019

2020

Number of Deals Handled (Non-consolidated)

The number of deals handled (non-consolidated) decreased rapidly to 229 until after Golden Week due to the impact of novel coronavirus, but quickly recovered to 272 (+13.8% year-on-year) due to strengthening of sales activities after the lifting of the state of emergency.

Changes in Earnings

(consolidated)	3Q		Forecast for the year	Progress for Entire Year	Units: Millions of yen

Net sales		8,375	13,706	61.1%

Ordinary income		3,520	5,905	59.6%


	Net sales					Ordinary income

14,000											6,000
13,000	Units: Millions of yen					12,592

12,000			Forecast for the year				13,706
11,000											5,000
10,000
9,000							8,337	8,018		4,000
8,000							[3Q]

7,000									(cumulative)
									8,375	3,000
6,000

5,000										[2Q]
					3,755			(cumulative)	2,000

4,000									5,654
				2,847
3,000
										1,000
2,000	571 1,073 1,157	1,667
1,000							[1Q]
0										1,295	0
YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	The Nine
	2011	2012	2013	2014	2015	2016	2017	2018	2019	Months
										Ended
										June 2020
		(Non-consolidated)			(Consolidated)

Units: Millions of yen	5,855
			5,905
		Forecast for the year

		Ordinary income ratio

53.8%	51.9%	48.5%	53.5%49.6%	43.3%	46.5%42.0%
45.9%
					39.4%

3,612

							3,160		[3Q]
								(cumulative)
									3,520
					1,860
				1,524				[2Q]
								(cumulative)
	577	600	808						2,386
						[1Q]
262
								115

YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	YE Sep	The Nine
2011	2012	2013	2014	2015	2016	2017	2018	2019	Months
									Ended
									June 2020

(Non-consolidated)(Consolidated)

In the previous fiscal year, net sales had increased more than tenfold over the six years since the year of application for listing (year ended September 30, 2013).

Countermeasures for dealing with the spread of novel coronavirus

Implemented the following countermeasures for business continuity

Encouraged those feeling unwell to take time off
Introduced thorough regimen of washing hands, using alcohol-based disinfectants, and wearing masks
Strengthened teleworking by working from home (progressively reverting to normal work from June)
Began new, free consultation service that does not require face-to-face meetings (email, telephone, video conferencing)
Held M&A seminars as webinars
Utilized satellite office

Impact of spread of novel coronavirus

We have left full-term results forecasts unchanged, but we are focusing on the impact of novel coronavirus going forward.

Refraining from new sales activities and switching to working from home has had an impact on the handling of some deals.
Due to the uncertainty regarding the results outlook for transferred companies, and other factors, some deals have fallen behind schedule, which caused results to fall below previous-year levels.
However, we plan to make up lost ground in 4Q and our results forecasts for the fiscal year ending September 30, 2020 are unchanged because we have accumulated ample deals handled and the advances received that are a reference indicator for back orders also reached a record level.
We will continue to focus on the impact of novel coronavirus going forward, and promptly disclose any significant impact on results.

Overview of Statements of Income (Consolidated)

(Units: millions of yen, second line is composition ratio)

	Nine Months Ended	Nine Months Ended June 2020	Forecast for the
		Year-on-year		Overview of	Year Ending
	June 2019
			September 2020
			Change		Performance
Net sales	9,916	8,375	-15.5%		Fell below previous-year levels due	13,706
(100.0%)	(100.0%)		to the impact of novel coronavirus.	(100.0%)

Gross profit	6,606	5,715	-13.5%		Impact of reduced
(66.6%)	(68.2%)		revenue

SG&A	1,886	2,193	+16.3%		Advertising expenses +97
(19.0%)	(26.2%)		Rents +39
Operating income	4,720	3,521	-25.4%		Impact of reduced	5,900
(47.6%)	(42.0%)		revenue	(43.0%)

Ordinary income	4,720	3,520	-25.4%			5,905
(47.6%)	(42.0%)			(43.1%)

Net income	3,159	2,319	-26.6%			4,054
(31.9%)	(27.7%)			(29.6%)


Number of deals	107	90	-15.9%		Fell below previous-year levels due	172
made		to the impact of novel coronavirus.

Employees	158	180	+13.9%
						18
				Copyright © M&A Capital Partners Co.,Ltd. All rights reserved.

Overview of Balance Sheets (Consolidated)

				(単位：百万円、下段は構成比)
	September 30,		June 30, 2020
	2019		Change	Main Factors Causing Change


Current assets	18,627	19,356	+ 729	 Cash and deposits: +1,027
	(88.1%)	(89.7%)
Noncurrent	2,504	2,215	- 289	 Deferred tax assets -120
 Goodwill: -145 (Amortization of
assets	(11.9%)	(10.3%)		goodwill)

Total assets	21,131	21,571	+ 440
(100.0%)	(100.0%)

Current	3,714	1,806	- 1,907	 Income taxes payable -1,581
liabilities	(17.6%)	(8.4%)
Noncurrent	212	225	+ 13
liabilities	(1.0%)	(1.0%)

Total liabilities	3,926	2,031	- 1,894
(18.6%)	(9.4%)

Total net assets	17,205	19,540	+ 2,334	 Retained earnings +2,319
	(81.4%)	(90.6%)
Total liabilities	21,131	21,571	+ 440
and net assets	(100.0%)	(100.0%)

					19
				Copyright © M&A Capital Partners Co.,Ltd. All rights reserved.

Market Capitalization

Units: 100 million yen

Market capitalization

1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2013/9/1	2014/9/1	2015/9/1	2016/9/1	2017/9/1	2018/9/1	2019/9/1

Market capitalization has increased approximately sixfold over the nine years since listing (November 2013).

Growth Strategy

Three-year Plan 1 : Number of Deals (Consolidated)

Three-year Plan for Number of Deals (Year Ending September 2020 to Year Ending September 2022)

	M&A Capital Partners	RECOF
260					244
240
				28
220
			205

200				25
180		172

160	144	22
140
19

120					216
100
			180
80
	150
	125
60
40
20
0	YE Sep 2019	YE Sep 2020	YE Sep 2021	YE Sep 2022

	Result	Target		Target	Target

[Number of Deals]

Average increase of 20% per year

Average increase of 10% per year

will be maintained in each company.

Three-year Plan 2 Number of Consultants (Consolidated)

Three-year Plan for Number of Consultants (Year Ending September 2020 to Year Ending September 2022)

	M&A Capital Partners	RECOF
240
220				214
200
180			178	58

160		148	53

140
126
	48
120

100	46
80				156
60		100	125
40	80

20
0	YE Sep 2019 YE Sep 2020 YE Sep 2021 YE Sep 2022

	Results	Target	Target	Target

[Number of Consultants]

Average increase of 25% per year

<RECOF>

Average increase of 10% per year

will be maintained in each company.

Growth Strategy (Non-consolidated)

Increase number of deals made, maintaining an average increase of 20% per year (Non-consolidated)
Continue hiring consultants, maintaining an average increase of 25% per year (Non-consolidated)
Increase and cultivate target industries for M&A intermediary business
Strengthening of reactionary sales (TV commercials, referrals, seminars, web, etc.)

Growth through reactionary sales

Growth through direct- proposal sales

Strengthening of Reactionary Sales 1

[TBS network "Houdo Tokushu"]

Began airing on "Houdo Tokushu" on TBS's national network from October 2019.

[TV Tokyo network "World Business Satellite"]

Continued airing from August 2018.
Additional commercial produced from October 2019.

Strengthening of Reactionary Sales 2

[Start of partnership with Mizuho Bank (from August 2019)]

Conclusion of business alliance agreement between Mizuho Bank and the Company to strengthen support for business succession needs of small and medium-sizedcompanies.
Mizuho Bank refers small and medium-sized companies with needs for business succession through M&A to the Company, which will provide detailed services to meet the succession needs of small and medium- sized companies expected to expand and diversify in future.

[Strengthening ties with tax accountants, accountants, local banks and securities companies]

Actively promoted strengthening of ties with local banks in the year ended September 30, 2019.
Also continued to strengthen ties with tax accountants, accountants and securities companies.

Strengthening of Reactionary Sales 3

[Continuation of M&A Seminars]

We will hold M&A seminars as webinars for the present time in response to the spread of novel coronavirus.

[Continued to strengthen measures for increase in inquiries from website]

Web advertising
SEO measures (maintaining high rank in Web searches)
Renewal of website

Aiming to be the world's leading investment bank seeking maximum contributions to clients and the happiness of all employees

The plans, forecasts and strategies, etc. contained in these materials are forecasts on future performance based on information available at the time the materials were prepared, and these include inherent risk and uncertainty. Actual performance may differ from forecasts and predictions due to such risk and uncertainty.

Information considered useful for explaining our business environment has been provided in these materials. The results in the data may vary depending on the method or timing of the survey.

Information within these materials on other topics besides the Company is quoted from published information and other sources. As such, the accuracy, appropriateness, etc. of the information has not been verified, nor are any guarantees provided thereof.

Attachments

Original document
Permalink

Disclaimer

M&A Capital Partners Co. Ltd. published this content on 14 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 August 2020 07:02:18 UTC

Latest news about M&A Capital Partners Co.,Ltd.

M&A Capital Partners Co.,Ltd. Reports Earnings Results for the First Quarter Ended December 31, 2023	01-30	CI
M&A Capital Partners Co.,Ltd. Announces Plan to Begin Paying A Dividend from the End of September 2023	11-02	CI
M&A Capital Partners Co.,Ltd. Provides Dividend Guidance for the Fiscal Year Ending September 30, 2024	23-10-31	CI
M&A Capital Partners Co.,Ltd. Provides Earnings Guidance for the Fiscal Year Ending September 30, 2024	23-10-31	CI
M&A Capital Partners Co.,Ltd. Reports Earnings Results for the Full Year Ended September 30, 2023	23-10-31	CI
M&A Capital Partners Co.,Ltd. Provides Consolidated Earnings Guidance for the Year Ending September 30, 2023	23-08-14	CI
M&A Capital Partners' Fiscal Half-Year Profit Rises 5.8%; Shares Climb 3%	23-05-18	MT
M&A Capital Partners Co.,Ltd. Provides Consolidated Earnings Guidance for the Year Ending September 30, 2023	23-05-17	CI
M&A Capital Partners Co.,Ltd. Reports Earnings Results for the Half Year Ended March 31, 2023	23-04-28	CI
M&A Capital Posts Over 95% Fall in Fiscal Q1 Attributable Profit; Shares Gain 3%	23-02-19	MT
M&A Capital Partners Co.,Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year Ending September 30, 2023	23-02-17	CI
M&A Capital Partners Co.,Ltd. Provides Forecast of Financial Results for the Fiscal Year Ending September 30, 2023	22-11-20	CI
M&A Capital Partners’ Nine-month Profit Soars 53% Higher Incentives	22-08-24	MT
M&A Capital Partners Co.,Ltd. Announces Earnings Guidance for the Fiscal Year Ending September 30, 2022	22-04-27	CI
M&A Capital Partners' Attributable Profit Rises 57% in Fiscal Q1	22-02-21	MT
M&A Capital Partners Co.,Ltd. Provides Consolidated Earnings Guidance for the Year Ending September 30, 2022	22-02-17	CI
M&A Capital Partners Co.,Ltd. Announces Earnings Guidance for the Fiscal Year Ending September 30, 2022	21-12-02	CI
M&A Capital Partners Co.,Ltd. Announces Earnings Results for the Nine Months Ended June 30, 2021	21-08-23	CI
M&A Capital Partners Co.,Ltd. Provides Earnings Guidance for the Year Ending September 30, 2021	21-08-23	CI
Japanese Shares End Flat as Investors Wary of Possible State of Emergency Extension	21-05-24	MT
M&A Capital Partners Co.,Ltd. Reports Consolidated Earnings Results for the Six Months Ended March 31, 2021	21-05-21	CI
M&A Capital Partners Co.,Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year Ending September 30, 2021	21-05-21	CI
Nikkei 225 : Japanese Shares Close with Gains on Heightened Hopes for Faster Economic Recovery	21-03-03	MT
M&A Capital Partners : Attributable Profit Grows to Over $10 Million in October to December 2020	21-03-03	MT
M&A Capital Partners Co.,Ltd. Reports Consolidated Earnings Results for the First Quarter Ended December 31, 2020	21-03-02	CI

Chart M&A Capital Partners Co.,Ltd.

Duration

Period

More charts

Company Profile

M&A Capital Partners Co Ltd is a Japan-based company mainly engaged in the operation of brokerage business of mergers and acquisitions (M&A), as well as the provision of related services. The Company is mainly targeting middle and small-sized enterprises, providing M&A agency service, using the business model that makes free debut money and promoting business expansion. The Company operates M&A related service business, including brokerage business, brokerage and advisory services, as well as database provision and media management business. In addition, the Company also operates administrative and general management consulting services.

Sector

Investment Banking & Brokerage Services

Calendar

2024-07-29 - Q3 2024 Earnings Release

More about the company

Income Statement Evolution

More financial data

Ratings for M&A Capital Partners Co.,Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

2,157 JPY

Average target price

2,823 JPY

Spread / Average Target

+30.89%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Investment Banking

	1st Jan change	Capi.
M&A CAPITAL PARTNERS CO.,LTD.	-11.31%	436M
BANCO BTG PACTUAL S.A.	-16.01%	31.51B
HAITONG SECURITIES CO., LTD.	-11.53%	12.64B
HOULIHAN LOKEY, INC.	+12.88%	9.28B
EVERBRIGHT SECURITIES COMPANY LIMITED	+2.33%	8.99B
AVANZA BANK HOLDING AB	+17.34%	4.09B
MOELIS & COMPANY	+0.86%	3.98B
PIPER SANDLER COMPANIES	+21.11%	3.31B
ICICI SECURITIES LIMITED	-0.45%	2.77B
MIRAE ASSET SECURITIES CO., LTD.	-5.50%	2.73B

Investment Banking