OnDeck

Basic Information

Stock Code
7360
Industry
Services
Category Detail
Professional Services for Businesses
Prefecture
Osaka Prefecture
Establishment Year
December 2007
Listing Year
December 2020
Official Website
https://www.ondeck.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nihon M&A Center Holdings, Grooving, Zakoo, Yamada Consulting Group, M&A Capital Partners, Sigmaxis Holdings, Strike, AHC, FPG, Aoyama Property Networks, GRCS, M&A Soken Holdings, Funai Soken Holdings

Overview

OnDeck is a specialized company in the services industry, established in 2007, with M&A brokerage for small and medium-sized enterprises (SMEs) as its core business, and strengths in supporting business succession for SMEs.

Current Situation

As of the end of November 2021, OnDeck recorded net sales of approximately 780 million yen and net profit of approximately 23 million yen, continuing solid management. It has bases in Osaka and Tokyo, and offers M&A brokerage services specialized in resolving successor issues for SMEs. It collaborates with chambers of commerce nationwide to build a regional business succession support network. Capital and net assets are stable, and audits are conducted by a certified public accountant firm. Since 2011, it has been involved in establishing multiple M&A markets and focuses on business succession support projects in collaboration with the Small and Medium Enterprise Agency. It listed on the Tokyo Stock Exchange Growth Market in December 2020, achieving capital procurement and improved recognition. Moving forward, it aims to expand its share in the industry by strengthening advisory services and due diligence beyond M&A brokerage, while promoting strengthened collaborations through capital and business alliances. To contribute to sustainable regional economic development, it is also advancing expanded collaborations with regional financial institutions and the utilization of online platforms.

Trivia

Interesting Facts

  • Founder has been involved in launching the SME M&A market for many years.
  • Participated in establishing numerous regional chamber of commerce markets, emphasizing community focus.
  • Capital of approximately 370 million yen, maintaining a solid scale as a mid-sized service firm.
  • 38 employees, emphasizing specialist lean organization.
  • Based in Kansai region with Tokyo office, exploring nationwide expansion.
  • Company representative participated as committee member in Small and Medium Enterprise Agency's business succession guidelines review.
  • Conducted capital increase from Teikoku Databank Group in 2018.
  • Focuses on scouting and development of talent to continuously maintain high expertise.
  • Engaged in activities to strengthen capital base through multiple third-party allotments.
  • Advancing efficiency of matching operations through IT technology introduction.
  • Unique service framework leveraging strengths of both online and in-person.
  • Developing and operating proprietary M&A support tools.
  • Strengthening partnerships with financial institutions nationwide.
  • Long average employee tenure, maintaining stable corporate culture.
  • High customer repeat rate due to management focused on community ties.

Hidden Connections

  • Improved credibility through capital participation from Teikoku Databank Group.
  • Company representative directly involved in formulation of Small and Medium Enterprise Agency's business succession support measures.
  • Opened new markets through capital and business alliance with Angel Bridge.
  • Founding members have close ties with Kyoto and Osaka chambers of commerce.
  • Strengthened Kanto region expansion accompanying Tokyo office relocation.
  • Coexists with industry leaders like M&A Capital Partners through niche differentiation.
  • Promotes M&A opportunities for regional companies via online systems.
  • Receives audits from ChuoAoyama Audit Corporation, ensuring credibility as listed company.

Future Outlook

Growth Drivers

  • Increasing M&A demand due to growing successor shortages in SMEs
  • Enhancement of community-based services through collaboration with regional financial institutions
  • Improved matching efficiency via online platform
  • Increased business opportunities from strengthened support policies of Small and Medium Enterprise Agency
  • Business efficiency improvement and advanced customer services through DX promotion
  • Network expansion through new capital and business alliances
  • Deployment of high-value-added services through strengthened legal and tax collaborations
  • New case creation from rising demand for business regeneration support
  • Improved recognition and fundraising through Tokyo Stock Exchange Growth Market listing
  • Improved case matching accuracy through next-generation technology introduction
  • Expansion of social significance contributing to sustainable regional economic development
  • Improved service quality through specialist talent development and acquisition

Strategic Goals

  • Nationwide service network through base expansion to major cities across Japan
  • Doubling annual handled cases and market share expansion
  • Advanced online platform and strengthened AI utilization
  • Strengthened collaboration with Small and Medium Enterprise Agency and local governments, including policy participation
  • Support for stable regional economic growth through sustainable management support
  • Strengthened business regeneration services and increased sales composition ratio
  • Maintaining employee satisfaction improvement and talent retention rate above 90%
  • Promotion of ESG-oriented management and expansion of regional social contribution activities
  • Business area diversification through new capital partnerships
  • Shareholder value maximization through financial soundness assurance and profit margin improvement

Business Segments

M&A Brokerage for SMEs

Overview
Provides total support for M&A brokerage and business succession tailored to regional SMEs, in collaboration with financial institutions and professional services.
Competitiveness
SME-specialized network and public-private collaboration support system
Customers
  • SME Owners
  • Prospective Business Successors
  • Regional Financial Institutions
  • Professional Service Firms
  • Chambers of Commerce
Products
  • M&A Brokerage Services
  • Business Succession Support
  • Contract Negotiation Support
  • Due Diligence
  • Corporate Valuation
  • Business Regeneration Advisory
  • Legal and Tax Collaboration Services
  • Online Matching
  • Regional Financial Institution Collaboration

Corporate Regeneration and Reconstruction Support

Overview
Provides comprehensive services from current status analysis to plan development and improvement support for companies aiming for management reconstruction.
Competitiveness
Consultants with extensive practical experience and strong regional network
Customers
  • Management-Distressed Companies
  • Reconstruction Support Organizations
  • Financial Institutions
  • Investment Funds
Products
  • Management Reconstruction Advisory
  • Business Reconstruction Plan Development
  • Financial Improvement Support
  • Fundraising Support
  • Risk Management

Due Diligence Services

Overview
Detailed investigation services to support appropriate decision-making in M&A transactions.
Competitiveness
Expertise capable of addressing SME-specific challenges
Customers
  • Acquiring Companies
  • Investors
  • Financial Institutions
  • Consulting Firms
Products
  • Financial Investigation
  • Business Investigation
  • Risk Assessment
  • Compliance Investigation

Business Support for Regional Financial Institutions

Overview
Expansion of SME support services through strengthened collaboration with regional financial institutions.
Competitiveness
Deep trusted relationships with regional financial institutions
Customers
  • Regional Banks
  • Credit Unions
  • Credit Cooperatives
  • Regional Revitalization Support Organizations
Products
  • M&A Matching Support
  • Successor Introduction Services
  • Financial Product Collaboration
  • Regional Economic Revitalization Consulting

Competitive Advantage

Strengths

  • Specialized expertise in M&A support for SMEs
  • Strong collaborations with regional financial institutions and chambers of commerce
  • Provision of consistent advisory framework
  • Management team with extensive industry experience
  • Enhanced governance through board of auditors
  • Introduction of online matching services
  • Synergy creation through capital and business alliances
  • Utilization of community-based network
  • Deployment of diverse service menu
  • Rapid decision-making and responsiveness
  • Established legal and tax collaboration framework
  • Solid financial foundation
  • Track record of collaboration with public institutions
  • Meticulous customer support
  • Building of long-term partnerships

Competitive Advantages

  • High expertise and know-how specialized in SME business succession issues
  • Utilization of unique network in collaboration with regional chambers of commerce and financial institutions
  • Provision of comprehensive support services including regeneration and due diligence beyond M&A
  • Ensuring transparency and credibility as a listed company
  • Possession of matching support via OnDeck's proprietary online platform
  • High-quality service provision by a lean team of specialist staff
  • Collaboration with other companies through capital and business alliances and new case acquisition capability
  • Strong trust from local companies due to community-based strengths
  • Strengths in public support projects from track record with Small and Medium Enterprise Agency
  • High customer satisfaction through comprehensive advisory capabilities
  • Broad customer対応 possible with both in-person and online services
  • Ability to propose total consulting schemes

Threats

  • Market share expansion by major M&A brokerage firms
  • Risk of deterioration in collaboration relationships with regional financial institutions
  • Impact on revenue from fluctuations in SME M&A demand
  • Burden of responding to legal regulation changes and strengthened compliance
  • Decrease in cases due to sudden economic downturn
  • Intensified competition from business diversification by competitors
  • Intensified competition in online platforms
  • Risk of outflow of employees' specialized knowledge and experience
  • Stagnation of corporate activities due to COVID-19 pandemic
  • Cost increases associated with strengthened data security
  • Intensified price competition in M&A cases
  • Difficulty in support due to deterioration of client companies' business environment

Innovations

2023: Enhanced Online M&A Matching Functions

Overview
Improved online platform to increase matching efficiency between SMEs.
Impact
20% increase in matching success rate and case acquisition numbers

2022: Expansion of Regeneration and Reconstruction Support Services

Overview
Launched advisory services specialized in management improvement for SMEs.
Impact
Improved customer satisfaction and increased new customers

2021: Network Expansion through Capital and Business Alliance

Overview
Strengthened case referral capabilities through alliance with Angel Bridge.
Impact
30% increase in referral cases from alliance partners

2020: Listing on Tokyo Stock Exchange Growth Market

Overview
Achieved capital procurement and brand strengthening through market listing.
Impact
Improved recognition and strengthened fundraising capabilities

2024: Initiation of AI-Utilizing Case Matching Review

Overview
Commenced planning for improved case matching accuracy through introduction of next-generation IT technology.
Impact
Expectations for future business efficiency improvements

Sustainability

  • Contribution to regional economic revitalization through support for stabilizing SME management
  • Promotion of business succession support measures in collaboration with public institutions
  • Improvement of employee-friendly workplace environment and strengthened talent development
  • Thorough compliance framework and strengthened information security
  • Business efficiency improvement and reduced environmental impact through promotion of online対応