TRANBI Reports a Remarkable 54% Increase in M&A Contracts for 2025

In a significant milestone for the Japanese mergers and acquisitions landscape, TRANBI, operated by Transbi Inc. based in Minato, Tokyo, has reported a remarkable 54% increase in completed M&A transactions for the fiscal year ending in March 2025. The platform achieved a record 529 transactions, surging from 343 transactions the previous year. This extraordinary growth can be attributed to several key factors that illustrate the evolving dynamics of the M&A environment in Japan.

Background and Overview of TRANBI

Founded in 2011, TRANBI is recognized as Japan's first M&A matching platform. It has successfully facilitated connections between sellers—companies looking to transfer ownership due to lack of successors—and buyers seeking new business ventures. Over the years, TRANBI has expanded its user base, allowing it to effectively present a variety of businesses that are available for sale, thus enhancing the potential for successful matches.

Growth in Transactions: A Closer Look

The increase in completed M&A transactions is primarily driven by notable growth in specific sectors, particularly in rental spaces and short-term lodging businesses. Although the COVID-19 pandemic initially led to a slump in both listings and transactions, the recovery since 2023 has been impressive. Notably, the number of transactions in these sectors has exceeded pre-pandemic levels from 2020, demonstrating a robust rebound in interest and activity.

Expansion of the Sharing Economy

The growth of the sharing economy has played a pivotal role in this trend. The rental space market is projected to reach an estimated ¥4.4 trillion by 2030, underscoring the increased public interest in such ventures. Additionally, the recovery in inbound tourism and the resultant accommodations shortage have spurred more businesses to engage in the short-term rental market.

Contributing Factors to Increased Demand

Several other factors have contributed to the recent surge in M&A activity on TRANBI. First, the platform has seen a marked increase in individual users, especially since 2022. Each year, more than 20,000 new personal users registered and began utilizing TRANBI’s services. This also reflects broader changes in work culture, where more companies are allowing for side jobs and alternative income opportunities.

Geographical Trends: Beyond the Urban Centers

Previously, most TRANBI users were concentrated in major metropolitan areas like Tokyo and its surrounding prefectures. However, the demand for business succession and M&A services in regional areas has significantly increased. Collaborations with local newspapers and business succession support centers have been established to foster this growth. A comparison of data indicates that transactions outside the metropolitan areas surged by 151%, whereas metropolitan transactions rose by 130%, pointing to an expanding reach across Japan.

Addressing the Challenges: The 2025 Problem

The increase in transactions can also be linked to pressing challenges faced by small and medium-sized enterprises (SMEs) in Japan. The impending “2025 problem,” characterized by a lack of successors in these businesses, has prompted more owners to seek advice related to business succession. Factors such as the aging workforce and ongoing economic difficulties have heightened the urgency for third-party succession solutions.

TRANBI has witnessed a significant rise in inquiries regarding its low-cost support service aimed at sellers, which saw a staggering increase of 70% compared to the previous fiscal year.

Enhancing Matching Precision

In efforts to improve transaction matching rates, TRANBI has upgraded features that allow sellers to send offers directly to potential buyers. Initially, the platform only facilitated one-way communication from buyers to sellers to initiate negotiations. However, the new feature enables sellers to actively propose offers to buyers, creating a more efficient incentive for transactions.

Supporting First-Time M&A Participants

With a rising number of individual users venturing into M&A for the first time, TRANBI has taken proactive steps to ensure a smooth transition for these newcomers. The platform has established community forums for knowledge-sharing, allowing users to connect and discuss their experiences and insights regarding M&A transactions.

Moreover, TRANBI regularly conducts seminars addressing common concerns, including risk management and potential pitfalls in M&A. By providing these resources, TRANBI aims to foster confidence and competence in first-time participants, thus smoothing the path for successful mergers and acquisitions.

Future Outlook

As TRANBI continues to navigate the evolving M&A landscape, the platform remains committed to assisting business owners facing succession challenges. Through strategic initiatives and continuous support, TRANBI aims to refine its matching capabilities and reinforce its status as a leader in Japan's M&A sector.