FORVAL Forms Strategic Alliance with Mitsui Sumitomo Insurance and AC Planning to Tackle Management Challenges

Introduction to the Strategic Alliance

FORVAL, a leading consulting group based in Shibuya, Tokyo, has announced its strategic partnership with Mitsui Sumitomo Insurance Company and AC Planning. This alignment is rooted in the mission to create a new world with 'new norms' while supporting visible ESG management through a concierge approach. As a collective of next-generation management consultants, FORVAL's leadership under CEO Masanori Nakajima aims to transform the landscape of support in the automotive industry and help business owners navigate through pressing management challenges.

Background and Purpose of the Partnership

In recent years, the motor dealership sector has been greatly impacted by an aging workforce and a significant shortage of successors. The challenges of business succession and M&A (mergers and acquisitions) have become critical issues that need addressing in order to ensure sustainable operations and regional economic stability. Unfortunately, many businesses are ill-equipped to handle succession planning, leading to concerns about continuity and local economic health.

Recognizing this urgent scenario, FORVAL, Mitsui Sumitomo Insurance, and AC Planning have joined forces to leverage their respective strengths and resources to comprehensively support their clients—dealers and other business associates—through the hurdles of succession, M&A, and management improvement. The partnership aims to facilitate a seamless transition of management while enhancing the overall sustainability and growth of the industry.

Core Support Framework

The three companies will establish a comprehensive support system tailored to address the management challenges faced by their partner businesses. FORVAL will focus on offering expansive management assistance centered on business succession, M&A, and value enhancement to its clients. It will devise optimal support strategies suited to the unique circumstances and needs of each organization.

Additionally, the partners will utilize their networks and insights to develop new channels, further understand customer needs, and engage in collaborative efforts such as information sharing and joint initiatives to reinforce the resolution of issues faced by the clients.

About FORVAL's Business Succession Support Division

FORVAL's Business Succession Support Division addresses the challenges of succession, particularly in the automotive repair industry. By employing the concept of 'reverse management from retirement,' the division is dedicated to solving the problem of leadership vacuums. Collaborating with industry bodies, specialized media, and insurance companies, the division aids in enhancing financial, organizational, and operational structures with an eye towards future succession. It helps build sustainable management systems that can adapt to changing external environments and be carried forward to the next generation.

Overview of FORVAL

Founded on September 18, 1980, FORVAL specializes in consulting services across five core fields: information and communication, overseas expansion, environmental initiatives, human resources and education, and entrepreneurship/business succession. The company’s capital stands at 4.105 billion yen and is publicly listed under the stock code 8275.

Driven by the government's four mandates—Green, Digital, revitalizing local areas, and countering declining birth rates—FORVAL works collaboratively with local governments, private enterprises, educational institutions, and financial organizations nationwide. Through its F-Japan initiative, FORVAL is committed to fostering local economies by training experts in DX and GX and creating a virtuous cycle that supports sustainable local development. Furthermore, the company dedicates efforts to visualize and support ESG management, recognizing the increasing importance of human capital.

Conclusion

As FORVAL, Mitsui Sumitomo Insurance, and AC Planning partner to fortify the automotive industry's management capabilities, they herald a unified approach to solving pressing issues such as succession and M&A. Their dedication to strengthening local economies and supporting sustainable businesses reflects a commitment to fostering growth and sustainability in challenging times.