Strike

Basic Information

Stock Code: 6196
Industry: Services
Category Detail: Professional Services for Businesses
Prefecture: Tokyo
Establishment Year: July 1997
Listing Year: June 2016
Official Website: https://www.strike.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Japan M&A, Groving, Reiwa Accounting Holdings, Yamada Consulting Group, M&A Capital, Sigmaxis Holdings, FPG, Aoyama Property Networks, M&A Research Institute, Funai Consulting Holdings

Overview

Strike is a Japanese M&A brokerage firm established in 1997, operating the internet M&A marketplace 'SMART' and recognized as an industry leader with strengths in matching mid-sized SMEs.

Current Situation

Strike Co., Ltd. recorded net sales of approximately 6.9 billion yen and operating profit of approximately 3 billion yen in the fiscal year ended August 2020, maintaining a highly profitable structure. Its core business is M&A brokerage, specializing in mid-sized SMEs with annual sales of 1 to 10 billion yen, and it operates its proprietary internet platform 'SMART' to enhance deal efficiency. Differentiation from competitors comes from its extensive matching track record and technology utilization, and it is certified as an M&A advisor by the Tokyo Chamber of Commerce and Industry. Recently, it has aimed to expand its customer base through entry into Kyoto and a partnership with Fundino. It focuses on sustainable growth and strengthening support for business succession, contributing to M&A activation in local communities. Going forward, it will continue providing efficient matching services leveraging internet technology, anticipating expansion in the domestic M&A market.

Trivia

Interesting Facts

Opened Japan's first internet M&A marketplace 'SMART' in 1999
Founder is Kunihiko Arai, a CPA from EY ShinNihon LLC
Head office located in Otemachi Financial City Gran Cube in Tokyo
Specializes in M&A brokerage for mid-sized SMEs, establishing unique business model
Designated as official M&A advisor by Tokyo Chamber of Commerce and Industry
Also serves as fund sales agent partnering with sponsor companies in civil rehabilitation support
Listed on Tokyo Stock Exchange Mothers in 2016, later transitioned to TSE Section 1
Major shareholders include executives, trust banks, Daido Life, etc.
Deploys highly profitable business model with high operating profit margin
Pioneer in efficient M&A brokerage services utilizing the internet
Established position in vibrant industry with numerous strong competitors
Plays key role in resolving successor issues for mid-sized SMEs
Setting up new base in Kyoto to deploy regionally focused services
Expanding financial solutions through partnerships like with Fundino
Management team with CPA qualifications promotes highly transparent management

Hidden Connections

Contributes to regional industry revitalization as registered M&A support system advisor for Tokyo Chamber of Commerce and Industry
Close ties with corporate executives serving as fund sales agents collaborating with sponsor companies in civil rehabilitation cases
Strong financial foundation from major shareholders differentiates from other companies inside and outside the industry
Pioneered internet domain utilization among numerous M&A industry competitors, securing technological superiority
Maintains strong pipeline with audit firms due to founder from EY, enhancing financial reliability
Successfully maintained stable shareholder composition after TSE Prime listing and major market transition
Partnership with Fundino demonstrates collaboration with emerging companies for service expansion in financial sector
Kyoto base entry creates intersection between traditional industries and latest financial services

Future Outlook

Growth Drivers

Expansion of M&A demand accompanying worsening successor issues for mid-sized SMEs
Spread of efficient matching services utilizing internet technology
Enhanced access to SMEs through local base establishment
Expanded financing support through strengthened collaboration with financial institutions and investment funds
Demand for comprehensive support services corresponding to increasing civil rehabilitation cases
Growing acquisition interest among young executives
Streamlining of M&A procedures due to legal amendments
Expansion of ESG-compliant M&A support considering social responsibility
Advanced information management and analysis through digitalization promotion
Service diversification through partnerships with new entrants
Expansion of international matching through overseas collaboration
Improved valuation and matching accuracy via AI and big data utilization

Strategic Goals

Expand market share in domestic mid-sized SME M&A brokerage
Deploy regionally focused M&A support bases to major cities nationwide
Multifunctionalize internet platform and deepen AI utilization
Provide ESG-standard compliant services toward realizing sustainable society
Build diverse funding channels and expand fund business
Complete diversity promotion for employees and work style reforms
Realize one-stop services in collaboration with legal and tax fields
Establish global M&A support system linked with overseas markets
Strengthen internal sustainability such as reducing environmental impact
Maintain and strengthen good relations with shareholders and stakeholders

Business Segments

M&A Brokerage and Advisory

Overview

Provides M&A brokerage and capital alliance advisory services to mid-sized SMEs across a wide range of industries.

Competitiveness

Industry-first internet M&A marketplace operation and extensive brokerage network

Customers

Mid-sized SME Owners
Listed Subsidiaries
Executives Seeking Business Succession
Investment Funds
Business Rehabilitation-Related Companies

Products

M&A Brokerage Services
Business Succession Support
Capital Alliance Consulting
Corporate Valuation
Matching Platform Provision

Business Rehabilitation Support

Overview

Provides financial and sales support for companies aiming for reconstruction and bridges to sponsor companies.

Competitiveness

Extensive know-how and practical support in civil rehabilitation cases

Customers

Civil Rehabilitation Applicants
Sponsor Companies
Fund Managers

Products

Fundraising Consulting
Sales Support
New Fund Sales Agent Operations

Competitive Advantage

Strengths

Efficient M&A matching through internet utilization
High-specialization services for mid-sized SMEs
High operating profit margin and profitability
Tokyo Chamber of Commerce and Industry certified M&A advisor qualification
Extensive matching track record and expertise
Online platform operation know-how
Management team of CPAs with rich practical experience
Expansion strategy through capital and business alliances
Customer base expansion through regional entry
Stable capital and net assets
Specialized services provided by employees
Credibility as a Tokyo Stock Exchange Prime listed company
Rapid matching and information disclosure
Differentiation from wide range of competitors
Solid financial foundation

Competitive Advantages

Operates Japan's first online M&A marketplace 'SMART', with high brokerage efficiency as a strength
Specializes in niche market of companies with 1-10 billion yen sales, differentiating through expertise
Advanced consulting technology and broad customer network
Diverse services from M&A support to civil rehabilitation cases
New market development through Kyoto entry via geographic strategy
Reliability and brand power based on long track record
High-quality advice from CPAs with financial perspective
Stable funding base from multiple major investors
High transparency in industry information disclosure
Integrated support system including legal and tax specialized services
Efficient information management and communication via ICT
Flexibility to handle diverse industries
Customization proposal capabilities meeting customer needs
New business development power through strong sales team
Extensive collaboration network with related companies

Threats

Intensifying competition in domestic M&A market leading to price competition
Pressure from entry of major comprehensive consultancies
Decline in corporate M&A appetite due to economic fluctuations
Impact of legal regulations and tax system changes
IT security risks and personal information protection issues
Increasing complexity and uncertainty in successor issues for client companies
Rise of emerging technology companies
Changes in stock market trends affecting funding conditions
Service quality decline due to talent outflow such as employees
Decrease in business succession and rehabilitation cases during recessions
Credit risks of related financial institutions
Limited expansion into global markets

Innovations

2024: Strengthening Entry into Kyoto Region

Overview: Launched M&A brokerage business in Kyoto, known as a holy land for startups, to expand regionally focused services.
Impact: Contributes to acquiring new customer segments and increasing deals

2023: Buyer Introductions via Partnership with Fundino

Overview: Partnered with crowdfunding platform Fundino to strengthen buyer introduction operations.
Impact: Diversifies buyer candidates and improves closing rates

2022: SMART Platform Functionality Improvements

Overview: Implemented system updates to improve usability and matching accuracy.
Impact: Improves customer satisfaction and increases transaction volume

2021: Launch of Shinsei Sanpei Fund Operations

Overview: Began operations as a new fund sales agent to support civil rehabilitation applicants.
Impact: Strengthens funding support system for rehabilitation cases

2020: Introduction of Online Contract Support

Overview: Introduced online contract and negotiation support tools as measures against COVID-19.
Impact: Promotes rapid transactions including remote locations

Sustainability

Awareness of social responsibility in supporting business succession for client companies
Promotion of SME support in response to aging society
Contribution to regional community revitalization
Strengthening information security and personal data protection
Practicing law compliance and high transparency in corporate activities
Improving employee satisfaction through work style reforms
Internal improvements in environmental aspects such as reducing industrial waste
Promoting diversity and inclusion
Supporting development of sustainable capital markets
Consulting that contributes to solving social issues