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M&A Consulting
A sellout is when a company is sold through the transition of stoks. Basically, all the assets and debt belonging to the company are transferred to the buyer.
Message
Ten years have passed since I founded SOTOKU, a boutique firm specializing in M&A intermediary.
I have been engaged in M&A business for more than 20 years, including the period I worked for a securities firm.
During these 20 years, M&A has become broadly recognized as an effective vehicle for company growth, and is currently carried out in most if not all industries.
Nevertheless, very few cases exist where both parties involved in the M&A are able to increase their corporate values and mutually benefit from the M&A.
M&A deals must overcome a heap of obstacles to reach a formal agreement. The smallest fray during negotiations may lead to the breakdown of the deal, and the most trivial misunderstanding may cause postdeal estrangement.
Delicate consideration and patient negotiations are indispensable, especially for our core business of M&A deals involving private companies.
Activities such as “Planning an M&A strategy based on proper evaluation” is indeed important, but the knowledge and instinct that underlie the ability to grasp the essence of the deal can only be gained through longterm experience.
The company is an entity consisting of people. Thus, any M&A should take place not only with respect to business theories, but by taking into consideration the entire company identity - its people, ethics and history.
In SOTOKU, we strive to “have the greatest common sense”, which we believe is the quality needed for an M&A dealer.
As an M&A professional, as we strive to deepen our expertise every day, we pursue the ideal of “having the greatest common sense”.
At the same time, we strive to maximize the quality of our M&A work by collaborating with experts in accounting, finance, law, as well as in intellectual property, which is the key to postdeal corporate growth.
With the best team of trusted members who share the same vision, we hope to contribute to the revitalization and growth of both buyers and sellers, by continuously creating many M&A opportunities to come.
I have been engaged in M&A business for more than 20 years, including the period I worked for a securities firm.
During these 20 years, M&A has become broadly recognized as an effective vehicle for company growth, and is currently carried out in most if not all industries.
Nevertheless, very few cases exist where both parties involved in the M&A are able to increase their corporate values and mutually benefit from the M&A.
M&A deals must overcome a heap of obstacles to reach a formal agreement. The smallest fray during negotiations may lead to the breakdown of the deal, and the most trivial misunderstanding may cause postdeal estrangement.
Delicate consideration and patient negotiations are indispensable, especially for our core business of M&A deals involving private companies.
Activities such as “Planning an M&A strategy based on proper evaluation” is indeed important, but the knowledge and instinct that underlie the ability to grasp the essence of the deal can only be gained through longterm experience.
The company is an entity consisting of people. Thus, any M&A should take place not only with respect to business theories, but by taking into consideration the entire company identity - its people, ethics and history.
In SOTOKU, we strive to “have the greatest common sense”, which we believe is the quality needed for an M&A dealer.
As an M&A professional, as we strive to deepen our expertise every day, we pursue the ideal of “having the greatest common sense”.
At the same time, we strive to maximize the quality of our M&A work by collaborating with experts in accounting, finance, law, as well as in intellectual property, which is the key to postdeal corporate growth.
With the best team of trusted members who share the same vision, we hope to contribute to the revitalization and growth of both buyers and sellers, by continuously creating many M&A opportunities to come.
Company Policy
- Company Policy 1
- Company Policy 2
- Company Policy 3
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Every day, with humbleness and veracity, we strive to cultivate our expertise,
in order to facilitate your management decision with utmost care and sincerity.For an executive, especially for company owners and founders, the company represents his life itself.
It is difficult for others to understand the state of mind of such an executive who is considering selling his business, regardless of the reason such as mergers, turnarounds, or business handovers due to lack of successors.
No others can feel the same gravity of the decision he makes, especially taking into concern his deep considerations of the history and future of the company, and of the employees.
However, we, as M&A professionals, at times must support their decision, and at other times, with all respect to the executive’s opinion, must argue against it.
How should we face the executive’s decision? What should our attitude be in considering a decision that alters the life of the decision maker?
We believe that the only answer is to engage in the deal as a humble and truthful intermediary to the best of our abilities.
Our philosophy is “Always abide by our promises, while taking care of even the minutest details.
Be honest, don’t flatter, don’t overreach.
Cultivate the habit of plowing deep into yourself so that you become proficient in your field of expertise. Create your own way forward. “
For a long time, I have written these words of wisdom on the first page of my diary and have abided by.
What is essential in this business is neither a lofty business strategy nor a vision of the next generation, but a sincere mind and effort towards a successful M&A. -
Live and relevant information leads to success in M&A. This is captured as part of our company name Sotoku kigyou jouhou or company information.
“Information” is a critical component of any successful M&A deal.
For buyers and sellers to find their best match in this market today, an information network comprising of many companies, high in both quality and volume, is imperative.
Also, information with respect to the counterparty is collected and utilized throughout the M&A procedure.
In addition to the business and financial conditions of the company concerned, information that is valuable for making an informed decision includes their corporate culture, the characteristics and future prospects of their industry, and ultimately the executive’s personality as well as family structure.
“Live information” needs to be handled with extreme care.
M&A is an extremely confidential issue for corporate management. To prevent the information from leaking and to allow appropriate management judgment of the deal in a closed environment, we generally conduct meetings at our office, and refrain from visiting our clients.
Taking advantage of all information collected from a strategic standpoint forms the backbone of M&A business.
SOTOKU, from our company name which means “Create Virtue”, represents our wish to contribute to the M&A market, and KIGYOU JOHO signifies the care we take towards corporate information. -
Our business style is exemplified by each “Individual” fulfilling their responsibilities while sharing the resolutions and values.
Through experience in numerous M&A deals, I feel certain that absolute trust relationship between the client and the intermediary is vital for a successful deal.
In other words, in order to successfully complete the M&A project, the Seller must have complete confidence in the Intermediary.
In essence, this depends on whether the Intermediary himself can be trusted as a person. SOUTOKU was created on this very basis.
Can someone, being a hired employee of an organization, face up to an earnest decision making of one company’s management? Conversely, can a Seller of a company entrust his lifealtering decision to an employee or salaryman of an Intermediary company who may be transferred to another position within the organization or to a different organization anytime?
I kept questioning myself, ever after the establishment of SOTOKU – whether to increase employees, to hold experts in various fields, and to wrestle with M&A as an organization.
And currently, SOTOKU sticks to the concept of “Small group – exceptional talent”. We have established our belief that tackling the deal with responsibility as an individual is the most feasible style for M&A business.
Each M&A deal is unique, and the required expertise and methods vary for each case.
In the intellectual properties area such as patents, specialized support is lately becoming increasingly in demand.
The ideal style to pursue an M&A project would be to form a team of experts who have skills that suit the deal perfectly. Each member would make individual commitments to the project to make it successful.
About Us
- Company NameSotoku Co., Ltd.
- Head Office6th Floor, Sansho Bldg., 3-2-9 Nihonbashi, Chuo-ku,
Tokyo 103-0027, Japan - President & CEOTokuji Utsunomiya
- Date EstablishedJuly 1999
- Paid-in Capital180 million yen
(As of January 2010 100% privately owned by Utsunomiya) - No. of Employees6
- TEL
- FAX03-3510-6251
- E-MAIL
- Business OutlineBrokerage/agency for mergers and acquisitions of
companies and corporate alliances,
Consultation on general corporate management issues
including stock floatation,
Investment in and management of
companies with unlisted stocks