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Sunday, December 10, 2023

M&A Navi Begins Accepting Management Candidate Registrations for Renovation Startup Fund

ALIVAL, which operates "M&A Navi," a platform to support business succession for small and medium-sized companies, began accepting registrations from June 18, 2020, for candidates to become owner-managers of companies suffering from the problem of lack of successors.

Growing problem of lack of successors

The aging of managers and other factors are expected to put the survival of some one million companies in jeopardy, making management succession an urgent issue. In addition, the average age of the company's president is over 60, and it is said that more than two-thirds of the companies in Japan face a shortage of successors.

Currently, the government is taking aggressive measures to solve this problem, and private operators are also developing various services. However, these services have not yet fully penetrated the market. Furthermore, due in part to the impact of the new type of coronavirus infection that has been raging since the beginning of 2020, a number of businesses are unwillingly closing throughout Japan.

Diversified career steps

With the lifting of the ban on sideline jobs and reforms in the way people work increasing, the number of people registering for our "M&A Navi" service with the goal of "acquiring a company and becoming its manager" is also increasing dramatically.

According to the "Survey of Individuals' Intentions to Acquire Companies" conducted by M&A Navi last year, the most common response as to why individuals were interested in acquiring companies was "because I want to become a manager.

While the main purpose of M&A between companies is to diversify their businesses and expand sales, in the case of individuals, there is a strong desire to become an "owner" through the acquisition of shares and a "manager" in the form of a representative director.

September 2019 M&A Navigator, "Survey of Individuals' Intentions to Acquire a Company."

However, many talented students in Japan still avoid high-risk entrepreneurship and work for large corporations, making it difficult to increase the number of future management leaders.

What is the "Renovation Startup Fund"?

To solve the problem of business succession, the fund aims to enable businesspeople who are currently working as businesspeople to take over companies as their own managers and re-grow them by utilizing new capabilities.

Many talented young businesspeople, including those at major companies, spend their lives without realizing their potential.

The "Renovation Startup Fund" is a mechanism to solve Japan's business succession problem while minimizing the risks involved in starting a business as much as possible.

Unlike regular funds, the following points are significantly different

Prospective managers search for acquisition targets on their own.
The fund pays a fixed fee until an acquisition partner is found.
After the acquisition, a certain percentage of shares will be held by management.
After the replacement of fund funds, the company can continue to grow over the long term as an owner-manager.

The Renovation Startup Fund was established by the founders of a company listed on the first section of the Tokyo Stock Exchange and ALIVAL Corporation, which operates M&A Navi, with the goal of producing 100 managers who will contribute to society over the next 20 years.

The details of the fund will be officially announced in early August 2020.

Fund Structure

1. an agreement between the prospective manager and the fund regarding corporate search services
An agreement is entered into between a prospective manager willing to participate in the Fund and the Fund regarding the search for an acquisition target.
The prospective manager is paid a fixed fee and is free to search for the company he or she would like to manage to take over the business.
In principle, the contract period is up to 18 months, and the company will work with the support of the fund to make acquisitions within that period.

(2) Find and approach companies that are in need of a successor
Explore companies that lack successors, using networks in your own hometown and connections in your current position.
Fund members and M&A Navi advisors will provide support as needed on methods for selecting acquisition targets and drawing up growth strategies.

3. negotiate and sign an acquisition agreement and take over the business
Negotiate to purchase shares from the former owners. A certain number of shares are allocated to the new management at the time of the purchase or after the purchase.

4. expand business and achieve IPO
After the acquisition, the company will reform its business by making comprehensive use of its management skills, with the goal of an IPO in the next five years.
The IPO will replace the fund's capital, but the managers themselves can continue to manage the company in perpetuity as owners, and can aim for even larger capital gains.


Recruitment of Management Candidates

Prior to the official announcement of the fund, we will begin recruiting candidates to become young managers.
It is possible to register at the following page.

Renovation Startup Fund Registration page for management candidates

Application Guidelines

The kind of person we are looking for- Those who want to challenge themselves with all the experience they have gained in their lives to date.
- Those who want to manage long-term as an owner rather than a hired manager.
- Those who wish to go public (IPO) as an owner-manager.
ageGenerally under 35 years old at the time of application
(In order for the company to aim for long-term management after the acquisition)
Number of applicantsThe Fund aims to create 100 managers over the next 20 years.
The number of people is not limited if the right person is available.
Start DateBasically, the requirement is for the applicant to resign his/her current position and work on this project on a full-time basis.
The form will be initiated after retirement.
PeriodAs a general rule, 18 months.
In the meantime, the target company is explored and acquisition negotiations are conducted.
rewardIn accordance with the Fund's rules and regulations.
The amount is comparable to the salary level of the same age group.

About the Renovation Startup Fund

This is a completely new type of business succession fund that will "solve the problem of lack of successors" and "create new careers for young people.

About M&A Navi

An online M&A platform specializing in small and medium-sized businesses.
By consistently providing support from advisors with extensive M&A experience while conducting online work that can be done by the parties involved in the transaction themselves, the company is able to conduct M&A transactions at an overwhelmingly low cost compared to conventional advisory services.
In addition to matching candidates, negotiations can also be conducted online, allowing for efficient and speedy progress to closing.

About ALIVAL Corporation

The company was founded in September 2017 to create a world where any company or any person can make M&A transactions with confidence. Comprised mainly of members from major M&A specialist firms and engineers with extensive experience in product development, the company offers a new service in the M&A market for small and medium-sized companies. By streamlining existing practices and negotiation processes with people and technology, the company provides advisory services that are low-cost but comparable to those of large intermediary firms.

name of companyALIVAL Corporation
EstablishmentSeptember 2017
LocationBandai Mita Building 4F, 3-2-3 Mita, Minato-ku, Tokyo 108-0073, Japan
representativeMasaaki Nishimura, Toshihiro Koike
Business OverviewDevelopment and operation of online M&A platform "M&A Navi" / M&A advisory services
M&A Navigator."https://ma-navigator.com
uniform resouce locatorhttps://alival.co.jp/

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