#Japan #Tokyo #M&A #SMEs #Shikigaku

Launch of Hands-On Support Business through M&A

Shikigaku, based in Shinagawa, Tokyo, headed by CEO Hiroshi Ando, has announced the official launch of a hands-on support business focused on mergers and acquisitions (M&A) through its subsidiary, Shikigaku Growth Capital Partners, also located in Shinagawa. The objective of this initiative is aimed at ensuring that valuable technologies and services from Japan's small and medium-sized enterprises (SMEs) are preserved and connected into the future.

Background of the New Subsidiary and Support Initiative

Over the years, Shikigaku has provided management improvement solutions to over 4,500 companies through its organizational consulting business, addressing issues related to management, recruitment, marketing, and the establishment of effective organizational systems. In parallel, the company has accumulated expertise in business improvement through equity partnerships and sourcing within its fund operations, leveraging Shikigaku methodologies to enhance business performance.

However, the landscape of small businesses in Japan is changing rapidly. Projections indicate a decline from approximately 4 million SMEs in 2015 to fewer than 3 million by 2040. This significant reduction highlights critical challenges such as business succession, the inability to scale quality services and technologies into sustainable business growth, and difficulties in providing fair compensation to employees.

In particular, the manufacturing sector showcases the dilemma where companies possess superior technologies and services but struggle to resolve these challenges, creating a substantial societal issue. Therefore, Shikigaku aims to deploy its extensive knowledge and expertise to facilitate M&A and proper post-merger integration (PMI) through its new subsidiary, thus contributing to the legacy, growth, and reward through increased wages for employees.

Overview of the New Subsidiary

The newly established subsidiary, Shikigaku Growth Capital Partners, is chartered to spearhead this initiative. Here are the key details:

1. Name: Shikigaku Growth Capital Partners
2. Location: 2-9-3 Osaki, Shinagawa, Tokyo, 1st floor, Osaki West City Building
3. CEO: Ryoichi Ikeura
4. Business Focus: The subsidiary will handle M&A activities as a buyer and manage post-acquisition initiatives.
5. Capital: ¥1 million
6. Established: September 2024
7. Mission: To connect valuable technologies and services of Japan's SMEs to the future.

Direction and Policy of the New Business

The direction of the new initiative is outlined in detail in the financial disclosure released on April 11, 2025. A notable difference between this initiative and existing hands-on support funds is the approach to equity; while current funds generate revenue by selling shares, this new venture will focus on retaining equity and integrating the resulting performance into consolidated results.

Focus After M&A Implementation

The concepts guiding the post-M&A phase are as follows:

1. Connecting Technologies/Services with Business: High-level consultants versed in Shikigaku will be deployed to facilitate organizational and functional improvements directly, driving business expansion and profit enhancement.
2. Linking People with Growth: The initiative will promote the establishment and retention of organizational systems, fostering employee development. This aims to normalize wage increases as a form of compensation to individuals.
3. Connecting Technologies/Services to the Future: By standardizing an organization that is not dependent on individuals, Shikigaku ensures reproducibility and sustainability, thus creating a self-sustaining organization capable of continuous adaptation.

In reference to previous hands-on experiences, the changes observed in companies Shikigaku collaborated with demonstrate promising outcomes and a commitment to organizational enhancement.

Company Overview

• - Name: Shikigaku Co., Ltd. (SHIKIGAKU. Co., Ltd.)
• - Website: https://corp.shikigaku.jp/
• - Headquarters: 2-9-3 Osaki, Shinagawa, Tokyo, 1st floor, Osaki West City Building
• - Stock Exchange: Tokyo Stock Exchange Growth (7049)
• - Contact Number: 03-6821-7560
• - Business Focus: Management consulting and employee training based on Shikigaku methodologies, web service development, and publication of industry-related books.
• - Established: March 2015
• - CEO: Hiroshi Ando
• - Employees: 224 (as of August 31, 2024)

Contact Information

For more information, please contact Ryoichi Ikeura, Senior Executive Officer at Shikigaku, at 03-6821-7560.