Archived IR Presentation Materials for the Fiscal Year 09/2025 Earnings Results

IR Presentation Materials for the Fiscal Year 09/2025 Earnings Results

M&A Capital Partners  Inc. posted an archive video of the IR presentation (for the fiscal year 09/2025 Earnings Results) held on November 6th 2025 as follows.

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

• Could you share the initiatives and strategies behind your new client acquisition activities? Across the industry, responses to direct mail and cold calls are said to have worsened compared to a few years ago. How does your company secure appointments and expand sales activity volume? Are there any particular measures you have implemented?

  We believe several factors have contributed to the decline in response to new client acquisition. The increase in the number of intermediaries has led to more direct mail, and negative news about the M&A brokerage industry has also had an adverse impact.
  On the other hand, in MACP’s case, our past investment in TV commercials has significantly enhanced brand recognition. While some business owners may now question the reliability of M&A brokers due to media coverage, there are also voices saying, “If we proceed, let’s go with a major player” or “Let’s talk to the company with the Lion CEO commercials.” Overall, the net impact appears relatively neutral for us.
  We intend to maintain solid sales activities while continuing to invest in commercials. In addition, as large-scale deals have increased across industries, presenting symbolic examples such as “We assisted with this type of transaction” has made our approach more convincing. We believe brand strength and the ability to present credible case studies are key factors.
  Is it fair to say that, at present, there is no significant trend of new consultants struggling with client acquisition and experiencing delayed ramp-up?

  Securing appointments and mandates through outbound calls has never been easy. It was not substantially easier in the past, nor were success rates dramatically higher. We believe strengthening brand recognition and ensuring sufficient activity levels are critical. Those who are already familiar with our name or case examples tend to be more receptive to our outreach. While conditions have not improved compared to before, we feel our position remains relatively favorable within the M&A brokerage industry.
  Regarding the number of mandates: the proportion of large-scale deals rose from 20% in Q2 to 25.7% in Q4. What is driving the strong performance in large deals? Are there any specific measures behind this?

  The increase is due to more large-scale deals being newly mandated and progressing smoothly. Large deals require time for audits and preparation, so they accumulate as mandates. While the ratio is 25.7% on a deal-count basis, it is likely much higher on a revenue basis.
  The number of mandates has been showing a modest increase. Do you expect this trend to continue, or do you have measures to accelerate growth further?

  Looking back, the modest increase reflects overall trends. When deals close, the number of mandates can decrease. However, in FY2025 (ending September), new mandates reached a record high, including large-scale deals, which is very encouraging. There are no special measures to increase mandates; rather, we focus on consistent daily actions, refining proposals, and enhancing expertise. The sharp increase at the end of Q1 coincided with an internal campaign to strengthen mandate acquisition. That was partly due to taking on smaller, more challenging deals. Those have since been replaced by standard deals, resulting in a continued modest increase. Personally, I am committed to further growth and will keep working diligently.
  It has been one year since the establishment of the IB Coverage Department. Could you share its progress and future direction.

  The IB Coverage Department is still in its early stages. Its head previously led the buy-side team for Toshiba’s privatization at a major securities firm and is highly respected in the industry. The team includes members with cross-border M&A experience in London as well as skilled accountants from within the company. Currently, it is a small team of three, working closely with the Corporate Advisory Department, which specializes in large-scale transactions.
  The CA Department consists of more than a dozen professionals from Big Four FAS firms, lawyers, and judicial scriveners. This enables us to handle complex, high-quality deals, and we plan to further expand the team.
  We have already acted as buy-side advisor in a disclosed TOB transaction, handling deals worth tens of billions of yen—an area previously beyond the reach of M&A brokers. We see considerable opportunities in this field going forward.
  On page 39, regarding succession M&A, the “250,000 main target companies” appear to focus on profitable corporations. Is this because businesses without recurring profits face sustainability challenges?

  We do not decline companies simply because they are loss-making. The statement is intended to highlight that even when focusing only on profitable companies, the market is already substantial.
  However, cases involving excessive debt or three consecutive years of operating losses are outside our scope. Such restructuring cases fall under Mirai Financial Advisory Service, which works with bank syndicates to negotiate debt reduction and pursue business revitalization.
  Regarding talent development: based on the average of slightly over one deal per person, is the process such that consultants start by closing 1–2 deals with senior support, then handle 3-5 deals independently, and after six deals begin managing subordinates? Does this imply the first 1-2 years as junior, independence by year three, and team leadership after six deals?

  Internally, we encourage new hires to aim for five deals within three years. We want them to become independent within that timeframe and also be able to accompany and mentor junior colleagues.
  In FY2025, goodwill amortization for subsidiary RECOF was ¥193 million, and impairment losses on fixed assets were recorded as extraordinary losses. What are your plans for restructuring RECOF’s business, management improvement, and risk control for similar issues?

  Despite our efforts, RECOF unfortunately posted losses for three consecutive years, which reflects my own shortcomings as president. There are no special measures, but RECOF has strong brand equity. We have aligned its bonus structure with MACP, making compensation frameworks nearly identical.
  Previously, the team was dominated by former Yamaichi Securities members, with a seniority-based pay structure and many senior employees, resulting in high fixed costs and limited operating profit. Recently, senior members have retired, and the workforce has become younger. The current head of operations, Vice President Kodera, is in his 30s, and younger members are active, with only a few seniors remaining.
  Going forward, we aim to replicate MACP’s growth model: strengthen brand recognition, enhance recruitment, raise average compensation, and create a positive cycle.
  Regarding the impairment, we are reviewing internal risk management measures, but improvements are still underway.