#Waris #M&A Strategies #CEO Dependence

Transitioning from CEO Dependence in M&A Era

The landscape of mergers and acquisitions (M&A) for startups in Japan is undergoing a transformative shift. With projections indicating that 88% of startup exits will involve M&A by 2025, economic realities are transforming what once seemed extraordinary into an everyday occurrence for entrepreneurs. In light of this, the importance of visibility and valuation based on structural robustness, rather than CEO dependency, comes into focus. This article delves into insights shared during the recent webinar co-hosted by Waris and Willgate, aptly titled "How to Create a Sellable Company".

Understanding M&A Dynamics

As highlighted in the webinar, the Tokyo Stock Exchange's revisions to criteria for maintaining listings in the growth market is creating new challenges for companies seeking to go public. According to official forecasts, the IPO numbers decreased significantly in the first half of 2026, reflecting the growing hurdles for startups aiming to go public. These developments have created a pressing need for startup leaders to reconsider their exit strategies, shifting perceptions of company value and operational independence.

One crucial takeaway from the webinar was the identification of a fundamental factor that differentiates companies that are favorably evaluated by buyers from those that are bought at lower prices: dependency on the CEO. Companies that concentrate decision-making, customer relationships, and operational management in the hands of a single leader risk devaluation in the eyes of potential acquirers. Conversely, companies that demonstrate operational continuity without the direct influence of the CEO stand a greater chance of being appraised favorably during M&A negotiations.

Real Addressing of CEO Dependency

In recent times, Waris itself has experienced growth and significant transformation as part of the Benesse Group. This transition has illuminated the necessity of building effective management and operational frameworks that can accommodate scaling. Establishing a strong base requires addressing the glaring issue of "CEO dependence" and creating a capable management structure that can operate independently. As discussed by Ryō Yoshioka, Executive Officer at Willgate, and Miwa Tanaka, co-CEO of Waris, strategies for building a strong support system, referred to as the