ESG Initiatives

Social

Contributions to creating a sustainable society through M&A

The rapid increase in the number of small and medium-sized enterprises (SMEs) that go out of business in Japan is widely recognized as a serious issue.
According to estimates by the Small and Medium Enterprise Agency (SME Agency), this issue, if left unaddressed, could lead to a loss of as much as ¥22 trillion in GDP by 2025. There is an urgent need for companies to contribute to resolving this serious social issue by supporting and facilitating M&A for business succession.

Contributions to sustained economic activity since foundation

Since our foundation in 2005, we have been tackling social issues surrounding the lack of business successors facing the Japanese economy. Total aggregate sales of all transferor companies that we intermediated in M&A deals exceed ¥1 trillion, and we have also contributed to maintaining the employment of the transferor company employees.

Initiatives to realize "Fair M&A"

In addition to maximizing the profits of business founders, another key purpose of M&A for business succession is to provide employees with job satisfaction and stable employment. Rather than having the seller and the buyer company merely assert their interests, to provide quality advisory and intermediary services by specialists well-versed in the issues specific to M&A, we thoroughly educate and train our employees and comply with various codes of conduct, including the public guidelines. www.ma-cp.com/guidelines/(japanese only)

The MACP Group's collective capabilities to respond to various types of M&A

Our Group provides comprehensive M&A support services for companies of all sizes, from SMEs to major corporations. By supporting a range of deals from M&As for small and midsize companies focused on business succession to corporate turnaround projects, we strive to ensure business continuity and continued employment.

Cooperation with public initiatives
(participation in the formulation of guidelines and collaboration with the SME Agency)

The SME Agency has established M&A Guidelines for SMEs for the preservation and development of sound M&A services. Our Group cooperated with the Agency in formulating the Guidelines. Further, we provide information related to M&A through our Group companies RECOF Corp. and RECOF Data Corp., and offer robust services through active participation in public initiatives, contributing to the development of the overall M&A market.

Group company RECOF Data has built an M&A database of Japanese companies, and provides useful M&A-related information and statistics and HR development support

RECOF Data has built and operates an M&A database of Japanese companies, including data on M&A of unlisted companies since 1985. It also publishes MARR, Japan's one and only monthly magazine dedicated to M&A, and operates MARR Online, an M&A information media, and through these activities, provides useful M&A information that contributes to the revitalization and improved quality of the overall M&A market.
Further, in the M&A forum business, RECOF Data trains and nurtures human resources engaged primarily in the M&A of listed companies, and participates in other activities to support robust development of the market. In the M&A forum business, RECOF Data operates an M&A HR Training School, in efforts to expand the base of M&A specialists, an important theme for the business. The School has been offering courses taught by practicing lawyers, consultants, and other specialists with a wealth of experience and expertise in M&A since 2009.

Governance

Compliance initiatives

We have established Compliance Regulations to ensure that the execution of duties by directors and employees comply with the laws, regulations, and the Articles of Incorporation. In accordance with the Regulations, directors and employees strive to understand and maintain compliance from their respective standpoints, and to identify problems. We have also established a system to allow all members of the Company to report any internal violations of the laws, regulations, and the Articles of Incorporation.
The entire Group is involved in supporting M&A of a wide range of companies from SMEs to major corporations. By providing such comprehensive support services, from M&A of small and midsize companies focused on business succession to corporate turnarounds, our Group strives to ensure business continuity and continued employment.

Understanding and responding to industry-specific risks

As we operate in the specialized domain of M&A intermediary services, our business may be affected by industry-specific risks.
Major industry-specific risks include the intensifying competitive environment caused by the rapid entry of new competitors, changes in the market due to revisions to the Companies Act and various tax laws, the loss of professional talent and delays in securing and training personnel, and the loss of credibility and compensation for damages stemming from information leaks. Further, the high degree of dependence on a single business, M&A advisory and intermediary services, is also a risk unique to the Company. We will at all times strive to understand these risks, and in preparation for situations that may affect our management, we will put in place necessary measures and policies to take necessary actions to minimize potential losses.

Risk management system

We have formulated Risk Management Regulations toward establishing a risk management system, and based on the Regulations, we have appointed and assigned risk management officers and set up a system for promptly and accurately responding to risks when they arise. We have also put in place a system for analyzing and managing risks, led by the Compliance Committee, in cooperation with legal counsel and others, in efforts to prevent the occurrence of and reduce risks.

Sustainability Initiatives
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