#Japan #Tokyo #M&A #Willgate #Relic

Strategic Partnership to Boost M&A Activities

Introduction

In a significant move aimed at invigorating the merger and acquisition landscape for startups in Japan, Willgate, headquartered in Minato, Tokyo, has announced a strategic partnership with Relic, located in Shibuya, Tokyo. This collaboration seeks to enhance the existing services offered by Relic, which focuses on M&A for new business creation. By integrating Willgate’s extensive network and proven track record in M&A transactions, the two companies aim to establish a robust framework that supports innovation and growth.

Background of the Collaboration

Historically in Japan, initial public offerings (IPOs) have been the most common exit strategy for startups. However, with the rise of small IPOs and stricter listing criteria, more startups are now opting for M&A. The reality is that Japan lags behind other countries in terms of M&A activities. Corporate acquisitions of startups remain low compared to international standards.

Additionally, large corporations face challenges in generating new businesses rapidly due to a focus on synergies with existing operations and a conservative approach to risk. Thus, acquiring startups that possess advanced technologies and innovative business models is increasingly being recognized as a valuable strategy. This partnership intends to harness the strengths of both companies to facilitate and invigorate M&A activities in this sector.

Strengths and Roles of Each Company

Willgate offers a distinct service model with no upfront fees, operating on a success-based remuneration approach, making it one of the most competitive in the industry. In approximately five years since its inception, Willgate has successfully completed 83 transactions, boasting a quick turnaround of as little as 45 days. With over 17,400 buyers in their network and a proven history of partnerships with more than 7,900 companies, Willgate is especially recognized for its prowess in M&A brokerage within the IT and venture sectors. This partnership will leverage Willgate’s robust networks and practical skills to drive effective sourcing, negotiations, and execution throughout the M&A process.

Relic stands as a leader in the facilitation of new business development, having supported the startup initiatives of over 5,000 corporations. Their insights on open innovation, gained through investments in more than 40 startups and joint ventures, enable them to offer comprehensive support post-acquisition, from strategic planning to growth phase structuring. In this collaboration, Relic will focus on designing new business strategies centered on M&A initiatives and providing necessary support for co-creation and growth.

Outline of the Partnership

• - Joint Development of M&A for Large Enterprises: Focused on leveraging startups for new business creation.
• - Strengthening EXIT and Growth Support for Startups: Providing tools and strategies necessary for successful exits.
• - Market Penetration through Joint Seminars and Information Sharing: Collaborating on educational initiatives to spread awareness and understanding of M&A.

Expected Effects

The anticipated outcomes of this partnership include:

• - Activation of Japan's M&A Market: Enhancing competitiveness and engagement in M&A transactions.
• - Acceleration of New Business Development for Large Corporations: Expanding business portfolios through strategic acquisitions.
• - Sustainable Growth and Job Creation for Startups: Fostering steady development in the startup ecosystem.

Future Outlook

Both companies are committed to a collaborative approach that signifies that