Goodman Acquisition Drives Upward Revision of Earnings Forecast
The Why How Do Company (TSE: 3823) recently updated its earnings forecast for the fiscal year ending August 2026, following its strategic acquisition of Goodman Corporation. This upward revision illustrates the impact of mergers and acquisitions (M&A) on its growth strategy, where the company anticipates an increase in revenues and EBITDA, reflecting robust market conditions and operational capabilities.
Earnings Forecast Revision Details
In its prior earnings guidance published on October 15, 2025, the company projected revenues of 3.3 billion yen and adjusted EBITDA of 1.44 billion yen. The recent update reveals that these figures have been revised to:
- - Revenues: 3.61 billion yen (an increase of 310 million yen or 9.1%)
- - Adjusted EBITDA: 1.86 billion yen (an increase of 420 million yen or 29.2%)
This upward revision is a clear indication of the successful growth trajectory the Why How Do Company is experiencing through strategic M&A initiatives, positioning the company among the leaders in aiding business transfers in Japan.
Impact of M&A on Business Growth
The company is concentrating on M&A as a pivotal component of its growth strategy. After acquiring Dream Planet Inc. in September 2024, the company's focus has shifted toward establishing its primary business operations around helping companies navigate M&A. The recent acquisition of Goodman, now a wholly-owned subsidiary, marks the fourth deal in a sequence of strategic acquisitions intended to bolster the company's core services.
The current business environment in Japan poses various challenges, particularly with a reported 1.27 million companies facing succession issues. Stakeholders face unique difficulties, making M&A an attractive option for business revitalization without the necessity of selling out completely. The inquiry volume for M&A services, particularly around the model of facilitating corporate growth without acquisitions, has surged as a direct outcome of these challenges.
The numbers speak volumes: the company's sales have more than doubled, from approximately 750 million yen two years ago to 1.75 billion yen last year, with the current fiscal forecast setting expectations at 3.61 billion yen. This growth can be attributed to an increasing number of successful deals driving revenue and operational expansion.
Looking Ahead
While the updated earnings forecast serves as a positive outlook for the Why How Do Company, executives urge caution, noting that actual performance may vary due to various market and environmental factors. The numbers provided are based on the most current information and should not be viewed as guarantees of future performance.
With its headquarters located in Shinjuku, Tokyo, the Why How Do Company is positioned well to capitalize on the business opportunities emerging from Japan's evolving landscape. Under the leadership of CEO Shingo Kameta, the firm not only assists in M&A and investment strategies but also offers guidance to subsidiaries to ensure sustainable growth.
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