Ailick Corporation Announces Business Transfer Agreement with Broad Mind Inc.

Ailick Corporation Announces Business Transfer Agreement

Ailick Corporation, headquartered in Bunkyo, Tokyo, has officially announced its decision to enter into a business transfer agreement with Broad Mind Inc. This significant maneuver will involve the acquisition of the 'Manepro Shop,' a customer-oriented insurance retail brand operated by Broad Mind. This development was confirmed during a recent board meeting held by Ailick Corporate’s executives.

Purpose of the Acquisition

The motivation behind this acquisition stems from Ailick's ambition to position itself as the top solution provider in the insurance industry. The company’s current footprint includes 283 locations across Japan under its brand, 'Hoken Clinic®,' which caters to both direct customers and franchisees. Despite achieving considerable success with its insurance shop concept, Ailick recognizes that expanding its services further is essential to maintain and enhance its market leadership.

Broad Mind's existing model focuses heavily on providing financial consulting through online consultations and home visits. However, the operations of the physical insurance retail outlets, branded as 'Manepro Shop,' have faced challenges, primarily due to a lack of expertise in customer engagement through shop-based interactions. Consequently, in light of their recent struggles to attract new customers, Broad Mind has considered transferring the Manepro Shop operations.

The decision was made after extensive due diligence and consideration of the key aspects of the Manepro Shop's existing locations, current insurance contracts, and Ailick's accumulated operational experience from running the Hoken Clinic® brand successfully. The leadership at Ailick believes that rebranding the Manepro Shops under their established name and expertise will lead to increased profitability and better management of overhead costs.

Details of the Agreement

This acquisition includes 11 Manepro Shop branches located in Tokyo, transferring both the stores and the existing insurance contracts to Ailick. According to the financial reports for the last fiscal year ending March 2025, the Manepro Shops recorded sales of 335,930,000 yen, albeit with an operating loss of 116,369,000 yen. This indicates the pressing need for modification strategies to turn around the profitability landscape of the brand.

The cash-based acquisition price has been set at 327,841,000 yen. As for the existing customers under the shop's contracts, Ailick plans to leverage their expertise to enhance customer satisfaction and retention.

Overview of Broad Mind Inc.

Founded in January 2002, Broad Mind Inc. operates from Shibuya, Tokyo. Led by CEO Kiyoshi Ito, the company possesses strong roots in providing financial services through consultancy rather than retail. Their total assets stand at approximately 5.36 billion yen with a net asset value of around 3.95 billion yen as of March 31, 2025.

In terms of ownership, Kiyoshi Ito holds 26.60%, with credit company Credit Saison owning 17.48% of the shares. Notably, there exists no significant capital or transactional relationship between Ailick and Broad Mind.

Future Outlook

While the acquisition's immediate impact on Ailick’s consolidated financial performance is expected to be minimal, the company commits to providing updates should any substantial changes arise during the transitioning phase. The agreement is set to be fully executed on July 1, 2025, consequentially paving the way for a strategic operational enhancement of the brand.

In summary, Ailick Corporation envisions the integration of the Manepro Shop as a means to further its technology-driven goal of revolutionizing insurance distribution and promoting a better future for consumers in the realm of finance. The acquisition reflects Ailick’s commitment to not just being a player in the insurance sector but a leader in service innovation.