Archived IR presentation for the fiscal year ended at September 30th 2024

Archived IR presentation for the fiscal year ended at September 30th 2024

M&A Capital Partners  Inc. posted an archive video of the IR presentation (for the fiscal year ended at September 30th 2024) held on November 9th 2024 as follows.

• ■ Click here for details on Q&A (all questions and answers)

• I suppose the performance is thoroughly under management. How is it going on?

  In the fiscal year ending September 2023, consultants worked diligently on autonomy; however, some individuals did not perform adequately. Consequently, we implemented a new management policy establishing minimum KPIs and ensuring thorough execution. As a result, we had a solid second half in the fiscal year 2024, ending in September, and are well-positioned for the first half of the fiscal year 2025.
  Is the scale of deals getting smaller, and will it continue to shrink?

  Sales were boosted by the impact of ultra-large deals in the fiscal year ended September 2023, but the ratio of large deals has not fallen this fiscal year, and there is no impression of deals getting smaller in the future.
  For large-scale deals, is the closing time trend getting shorter or longer?

  There has been no change in the trend of closing times. As we have improved in handling complicated deals recently, there is no indication of longer closing times.
  I noticed that communication with Frontier Management could be improved at the last earnings briefing. I'm curious to hear if there has been positive development since then. Could you share your exciting vision for the future regarding Frontier Management? I'd like to know more.

  We work in different fields and approach the work fundamentally differently. I think there are many possibilities for us to collaborate. As you know, Frontier is involved in the investment and management consulting business. I believe we can collaborate in various ways, such as introducing deals. In the medium- to long-term vision, we would like to have a win-win friendly relationship, but there has been no significant progress.
  The guidelines for small and medium-sized M&A have been revised. Each company will have to respond to it starting in January of next year, but will this create an opportunity to reshape the industry?

  We don't think the number of M&A advisors will decrease anytime soon. However, companies with low brand awareness will suffer more. I believe this will significantly influence the medium to long-term industry. There are downsides and upsides. On the one hand, society doubts the sector. On the other hand, reliable companies will tend to be chosen, which positively influences MACP.
  Has the negative news release influenced your hiring activity in terms of applicants and recruitment rate?

  Our hiring is influenced by several factors. Applicants tend to do more research before applying, and the factors of being publicly listed and brand recognition are driving applicants with high aspirations to join us. Although the recruitment rate is not tabulated, the hiring criteria have not been changed, and high-level human resources are hired.
  You have mentioned about the KPI management. Is that why contract liability has been maintained at a high level?

  We do not have a KPI regarding contract liability and do not impose quotas. Volatility occasionally occurs. The change in KPIs management does not contribute directly to increasing contract liability but has increased the number of active deals.
  Given the ending balance of active deals, isn't the unit price set at a conservative level in the forecast for the next year?

  We made some conservative adjustments based on the average unit price for the past three years while checking the current level and the status of active deals.
  I have a question concerning Frontier Management. It is common for shares of publicly listed companies to move after the announcement is made, but you haven't taken such form, and the former founding member did not make a deal with the company. How will it go in the future?

  This time, I happened to be blessed with a special situation. I didn't do anything in cooperation with the company or management team. To clear unexpected worry, we have released in IR news that we are not thinking about any unreasonable alliance. Rather than seeing an immediate alliance effect, it is more of a gradual future effect.
  I have heard that decision-making on the part of customers is delayed due to the influence of the media. Is there such a trend so far?

  Not at all as far as I am concerned.
  Many companies are expecting an increase in costs due to the revision of the guidelines, such as the cost of meeting the qualification requirement and the cost of training. What kind of cost impact are you considering?

  We are not expecting any cost increase due to the revision of guidelines because we have set standards that are stricter than guidelines and are thoroughly implemented.
  The quality of service you provide and the reasonable intermediary fee you charge might positively influence the number of deals you get in the future, but I am concerned that the scale of deals will be smaller. I would like to hear your idea on this point.

  We receive service fees based on the share value using the Lehman formula. Only a higher share value impacts the fees we charge; higher debts do not affect our profit. Our services are exclusively available to companies that meet a specific level of share value. Therefore, a company with significant debt and low share value falls outside the scope of our services. We focus on securing deals with companies that have a high share value, which might generate substantial media attention.