#Japan #M&A #Shinjuku #Waihau #Company Succession

The Waihau M&A Report: A New Voice in Corporate Succession

On February 13, 2026, THE WHY HOW DO COMPANY, based in Shinjuku, Tokyo, announced the launch of the "Waihau M&A Report". This report aims to provide up-to-date insights into the M&A market and the pressing issue of business succession in Japan, where a staggering 1.27 million companies currently lack identified successors. This venture is an essential step in addressing the ongoing crisis known as the "2025 problem".

The Background of the Launch

In Japan, there are approximately 2.45 million small and medium-sized enterprises (SMEs) operated by individuals aged over 70. Of these, around 1.27 million do not have a clear successor. Each year, approximately 73,000 companies exit the market due to various reasons, including bankruptcy and voluntary closure. Worryingly, over 51% of these companies are actually profitable, suggesting that many viable businesses are being shut down due to a lack of succession planning and labor shortages. Addressing this issue is crucial for the health of Japan's economy.

THE WHY HOW DO COMPANY has established the guiding principle of "Helping through M&A." In line with this, they introduced the "M&A Peace of Mind Declaration" in August 2025, emphasizing long-term ownership that respects corporate culture and autonomy. The Waihau M&A Report serves as a regular information source aimed at business owners, investors, and financial institutions.

Overview of the Report

• - Report Name: Waihau M&A Report
• - Publication Frequency: Irregular
• - Publisher: THE WHY HOW DO COMPANY
• - Distribution Channels: Available on the company's website, official X account, WHDC Press Release, and through LINE Official Account.
• - Target Audience: Individual investors, SMEs, financial institutions, M&A professionals, and anyone interested in business succession.

Key Content Areas

1. M&A Market Trends: This includes data on domestic and international M&A transactions, major deal explanations, and industry trend analyses.
2. Succession Data: Details regarding successor absence rates, bankruptcy trends, the average age of business owners, and shifts in succession patterns.
3. Policy & Regulatory Updates: Information on business succession tax regulations, assistive measures, and guideline revisions.
4. WHDC Group News: Updates on M&A activities, progress made by group companies, and initiatives aimed at AI value enhancement.
5. Important Numbers: Critical statistics updated periodically in a dashboard format.

Highlights from the Inaugural Issue

The first edition of the report focuses on the growing M&A market and the critical issue of business succession affecting 1.27 million companies. Based on data from public institutions, significant findings include:

• - The number of third-party succession agreements reached 2,132 in FY2024, the highest record to date.
• - Over 150,000 individuals have consulted support centers for business succession.
• - The absence rate of successors reached 52.1% in 2024, according to Teikoku Databank.
• - In 2024, Japan recorded over 10,000 bankruptcies for the first time in 11 years.
• - A total of 69,019 companies opted for closure or dissolution in 2024, the highest on record.
• - Strikingly, 51.1% of closed businesses were profitable.
• - The deadline for advantageous business succession tax measures is set for December 2027 without extensions.

CEO Shingo Kameda's Statement

Shingo Kameda, President and CEO, remarks, "The challenges of business succession facing Japan's SMEs are growing more serious each year. The fact that over 7,000 companies exit the market annually, with more than half being profitable, shows that many of these businesses could survive with appropriate succession options available. Through the Waihau M&A Report, we aim to provide accurate information regarding business succession and M&A to facilitate the survival and growth of as many companies as possible."

Company Profile

• - Company Name: THE WHY HOW DO COMPANY, Inc.
• - Representative: Shingo Kameda, President & CEO
• - Location: 22 Aizumicho, 3rd Yamada Building, Shinjuku, Tokyo
• - Founded: July 2004
• - Listing: October 2006 (Tokyo Stock Exchange: 3823)
• - Business Focus: M&A and succession support, primarily aimed at fostering growth through M&A. Other services include management support for group companies, PMI, AI value enhancements, and consulting.
• - Group Companies: Stillan (wedding business), Goodman (infrastructure maintenance tools), Dream Planet, and others.
• - Core Principle: "Helping through M&A" - recognizing the invaluable sentiment behind the financial paperwork.