A German perspective on M&A in Japan

German Embassy in Tokyo

April 24th, 2008

Title: A German Perspective on M&A in Japan

  • The background, the drivers:
    • High Euro, low valuations in Japan
    • Globalization, must have critical size
    • Technology
    • Europe’s business is under-developed in Japan
  • The Landscape:
    • M&A is generally at lower levels than in UK/US
    • recently M&A transactions are rising:
  • Types of M&A:
    • strategic vs financial
    • friendly vs hostile
  • M&A: the process
    • Finding the target: “why should I pay for that?”
    • The deal: in Japan money often not always win!
    • Due diligence: often overlooked in Japan – especially by foreign companies!
    • Post-merger: culture is really difficult, must do your homework to succeed!

M&A in Japan

Talk and panel discussion at the Daiwa Anglo-Japanese Foundation

Practical aspects of mergers and acquisitions between Europe and Japan

Gave a panel talk organized by the Asia Pacific Technology Network at the beautiful House of the Daiwa Anglo-Japanese Foundation near Regents Park in London on the topic “M&A in Japan” on April 18th, 2008.

Summary:

  • The background, the drivers:
    • High Euro, low valuations in Japan
    • Globalization, must have critical size
    • Technology
  • The Landscape: M&A is generally at lower levels than in UK/US, however recently M&A transactions are rising:
    • 1985-1993: 500 deals/year Buyout Funds: 1 – US$ 30 Million
    • 2000-2003: 1700 deals/year
    • 2005-2007: 2700 deals/year Buyout funds: 22 – US$ 5.6 Billion
  • Types of M&A:
    • strategic vs financial
    • Hostile vs friendly
  • M&A: the process
    • The deal: in Japan money does not always win!
    • Due diligence: often overlooked in Japan (with example from our experience)
    • Post-merger: culture is really difficult, must do your homework to succeed! Lets discuss the pitfalls, e.g. lets learn from the Vodafone case!

Speakers:

Dr Gerhard Fasol, President, Eurotechnology Japan KK
David Syrad, Managing Director/Managing Director Asia, A.K.I. Japan Limited/Change Masters International Limited
Seminar Description

Two practitioners from Tokyo will debate the changes in Japanese attitudes to mergers and acquisitions. Gerhard Fasol is the leading expert of Japan’s electronics and telecoms sectors, while David Syrad is a consultant specializing on M&As, with particular reference to the automotive sector.

During the course of this seminar, we will cover:

DR GERHARD FASOL: BACKGROUND

Gerhard has been working with the Japanese telecoms industry since 1984. Over 1996/7, he created Eurotechnology Japan KK, which has become one of the leading western technology and M&A advisory boutique in Japan, focussing on the Japanese ICT sector. In recent years, Eurotechnology’s work has included advising a global financial institution on the risks of the US$ 15 billion loan to SoftBank for the Vodafone KK acquisition, helping a French company to acquire a Japanese pharmaceutical factory, analyzing industry sectors and companies for global investment banks, and working with a financial institution on mobile banking sites, including business development, technology and security.

Eurotechnology was also recently engaged by the European Union to benchmark Japan’s mobile and fixed-line communication industries vs EU, and to make recommendations to the European Union how to learn from Japan.

In addition, his company constantly works on business development projects between Europe and Japan – several of which Eurotechnology drives on it’s own initiative, helping Japanese companies grow business in Europe, and helping European companies build and grow their businesses in Japan.

DAVID SYRAD: BACKGROUND

Managing Director/Managing Director Asia, A.K.I. Japan Limited/Change Masters International Limited. David is responsible for strategy, business development and personnel. Also active as a consultant.AKI is a long-standing market entry and communication-related consultancy. Projects handled include: Automotive, Medical Equipment, ICT, IT, Nuclear Power, Office Automation, Food and Beverages, Sports Goods, Education and Tourism

Change Masters International is a UK-based, global Strategy Implementation Consultancy – latest Japan project led to client’s induction into the Balanced Scorecard Hall of Fame.

Location: Daiwa Foundation Japan House, 13/14 Cornwall Terrace, London, NW1 4QP (www.dajf.org.uk/location)
Nearest tube station: Baker Street
Timing: Sandwiches 12.30: Seminar 13.00 – 14.30.
Pricing: Free
To Register: please send your details (name, institutional affiliation, email address, phone number) to biz@aptn.org
Contact: Louis Turner 0790 5204 677

See: http://www.aptn.org.uk/20082Q/80418M&ATokyo.html

A European perspective on M&A in Japan

Presentation at the lunch meeting of the Danish Chamber of Commerce in Japan (DCCJ) on April 4, 2008.

Announcement

Photos of the event

Announcement text:

With the very high EURO and low valuations of many Japanese companies, and with changing attitudes in Japan, now is an excellent time for European companies to start or expand business in Japan.

There are many ways to start or expand business in Japan, and acquiring a Japanese company is one of the paths often selected by European companies to grow in Japan.

Some acquisitions of Japanese companies by European corporations have led to fantastic successes – while others have led to catastrophic failures.

The presentation will discuss the key factors for European companies to succeed in acquiring a Japanese company, and some of the key reasons for failure, based on the speakers 23 years of experience with Japan’s high-tech sector.

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