Japans Next Billionaire Is Revolutionizing M&A

Read time: 3 minutes

GM! It's Tuesday, May 30th - A huge portion of Japan’s population is retiring, and this future billionaire has built a platform to capitalize on it.


Japan’s Next Billionaire Is Revolutionizing M&A

Meet Shunsaku Sagami, the founder and CEO of M&A Research Institute who is now worth $950M after the company’s stock tripled in value since its debut last year.

So, what’s caused Sagami’s meteoric rise?

What’s the Business?

Sagami’s M&A Research Institute utilizes AI technology to match business owners with eager buyers, and in doing so, is solving a pivotal issue for Japan’s economy.

  • Japan has the second largest senior citizen population with ~30% of its population over the age of 65.

  • By 2025, 2.5M small to medium-sized Japanese business owners will be over 70 years old with 620,000 profitable enterprises expected to close in the next few years due to a lack of successors.

  • If this occurs, 6.5M jobs will be lost and reduce Japan’s GDP by $165B.

M&A Research Institute completed 62 mergers and acquisitions worth a total of ¥3.9B in the last six months and has 500+ deals in the works.

Sagami’s current focus is on finding successors for profitable businesses with annual sales of up to $3.7M.

The Innovation – Bringing Speed and Affordability to M&A

Traditional Japanese M&A consultants charge retainer fees that reach tens of millions of yen regardless of whether the deal actually closes. On top of that, these deals rely on regional banks and usually take over a year to complete.

Sagami’s M&A Research Institute solves both of these problems.

Affordability: Unlike traditional retainer fees, Sagami only charges a fee when an M&A deal is successfully closed. This transaction fee can increase up to 5% for deals of ¥500 million or less. Last quarter, M&A Research Institute made an average ¥60M per sale.

Speed: The old business adage “time kills all deals” certainly applies to M&A in which both parties must conduct an intensive review of thousands of documents. Sagami’s proprietary AI data system can quickly analyze, categorize, and extract pertinent information from documents and thus speed up the process dramatically. As a result, Sagami’s company executes M&A deals within just 49 days to six months.

So What?

Japanese investors are flocking to Sagami’s M&A Research Institute for good reason. Japan’s traditional M&A process is insufficient to deal with the enormous number of aging business owners in need of successors.

Sagami successfully transitioned M&A deals from a lengthy process that involved regional banks with bureaucratic bloat into a high-speed exchange that provides both parties with an in-depth understanding of crucial information. In doing so, he’s on the verge of becoming a billionaire and solving a problem with the potential to crater Japan’s economy.


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