Funai Soken Agata FAS Launches YouTube Series Explaining Business Succession and M&A Practices for the Logistics Industry

【How to Watch】Please watch via the link below. URL: https://youtu.be/q9q20lYIpdE?si=Ki7Uz3S9-2C1ku1r

Funai Soken Agata FAS Co., Ltd. (Headquarters: Chuo-ku, Tokyo, President and CEO: Takashi Mitsuda) has launched a series on its official YouTube channel where experts explain the practical aspects of business succession and M&A for managers in the logistics industry. Due to industry-specific challenges such as labor shortages, rising prices, and low profit margins, it is difficult for managers to apply general explanations to their own companies. Therefore, this series was created to delve into specific issues tailored to the industry. The first episode, addressing the challenges of driver and warehouse worker shortages, rising oil and vehicle prices, and an average profit margin of about 3%, focuses on the conditions for companies to be chosen by shippers in five years. Naoyuki Hashimoto, who has observed the management of logistics companies for over 25 years, and Yusuke Sanagi, who specializes in business succession and M&A in the logistics industry, discuss the decision-making criteria for considering group integration as an option.

Key Points of This Release

Launched a series where experts explain the practical aspects of business succession and M&A for logistics industry managers. The series delves into industry-specific issues such as labor shortages, rising prices, and low profit margins, addressing points not covered by general explanations.

The first episode's theme is "Reasons for the Increase in M&A in the Logistics Industry and Conditions for Companies to Be Chosen by Shippers in Five Years." It covers logistics-specific decision-making criteria such as scale, DX, buying power, and growth reproducibility.

Each episode features experts knowledgeable in both industry operations and M&A practices. The first episode features Naoyuki Hashimoto, President and CEO of Funai Soken Supply Chain Consulting Co., Ltd., who has observed the management of logistics companies for over 25 years, and Yusuke Sanagi of Funai Soken Agata FAS Co., Ltd., who is well-versed in business succession and M&A in logistics. They discuss the conditions for companies to survive in five years.

Why is this explanatory series for the logistics industry being launched now?

While the basics of business succession and M&A are common, the key points for decision-making vary greatly by industry. In logistics, these include labor shortages, rising prices due to high oil prices and increased vehicle costs, and an average profit margin of about 3%. The way assets like location, warehouses, and truck types are viewed is also unique. In reality, general explanations alone make it difficult for managers to consider their own company's situation. Therefore, this series was launched to focus on the logistics industry and have experts who understand both the management現場 (genba - on-site operations) and M&A practices delve into specific issues. Amidst competition for labor and continued low profit margins, the need for decision-making materials tailored to the industry is increasing.

Overview of the Series and the First Episode's Theme

This series will be sequentially released on the official YouTube channel, with two experts explaining the practical aspects of business succession and M&A for each industry. Each episode will feature a consultant familiar with the industry's現場 (genba) and an M&A expert, organizing the issues faced by managers in a practical manner. The theme of the first episode is "Reasons for the Increase in M&A in the Logistics Industry and Conditions for Companies to Be Chosen by Shippers in Five Years," and it will cover the decision-making criteria for considering group integration as an option.

Hashimoto (second from left), President of Funai Soken Supply Chain Consulting, explains the conditions for companies to survive in the logistics industry in five years in the video.

Features of the Series—Explaining Industry Operations and M&A Practices from Both Perspectives

This series is characterized by the consistent presence of a consultant familiar with the industry's現場 (genba) and an M&A expert. Instead of general M&A theories, it delves into industry-specific issues such as where value is created, what is valued, and what needs to be prepared within that industry. In the first logistics episode, decision-making criteria that can only be discussed by those familiar with the現場 (genba) were covered, including scale, buying power, DX connecting with shippers digitally, and reproducibility so that operations can continue even if the president is absent. Future episodes will also be explained with the same approach by two individuals deeply familiar with their respective industries.

Significance of Funai Soken Agata FAS Conducting This Series

Management in the logistics industry cannot be discussed without understanding the現場 (genba). Our group possesses expertise across over 1,039 professionals and more than 180 industries, supporting M&A and business succession. Since business customs and sources of value differ by industry, we believe explanations should also be industry-specific. The significance of this series lies in delivering insights that go beyond mere numbers to encompass management decisions, by combining consultants who understand the logistics management現場 (genba) with M&A experts.

Future Developments and Recommendations for Managers

Following the logistics industry, other industries will be sequentially released. A common recommendation for each episode is to organize one's company value and decision-making criteria while options are still available, rather than waiting until the decision to sell is made. There are paths forward even for local or small-scale businesses. We hope this series will serve as material for managers to consider whether their company will still be chosen by shippers in five years, in line with the realities of their industry.

Profiles of Participating Experts

Naoyuki Hashimoto / President and CEO, Funai Soken Supply Chain Consulting Co., Ltd. A professional in logistics industry management who has observed the management現場 (genba) of logistics companies for over 25 years. He has hosted the "Logistics Provider Management Research Group" (approximately 400 member companies) since 2005.

Yusuke Sanagi / Funai Soken Agata FAS Co., Ltd. A professional in business succession and M&A in the logistics industry. He is proficient in both transfer and acquisition, specializing in logistics-specific valuation and negotiation of terms.

Watch Here

You can view the logistics industry video collection here.

https://youtu.be/q9q20lYIpdE?si=jwi16fhWiupGO6ch

Click here for the Funai Soken Agata FAS Official YouTube Channel. You can also view other videos.

https://youtube.com/@funaisoken-ma-youtube?si=8L7hpWfSqYzJNv7i

About Funai Soken Agata FAS

Funai Soken Agata FAS is a comprehensive FAS company jointly established by the Funai Soken Group (Funai Soken Holdings: listed on the Tokyo Stock Exchange Prime Market), one of Japan's largest consulting firms, and Agata Global Management Group, a group of financial and tax professionals.

Location: Tokyo Midtown Yaesu, Yaesu Central Tower, 2-2-1 Yaesu, Chuo-ku, Tokyo

Representative: Takashi Mitsuda, President and CEO

Business Activities: M&A Advisory, Business Succession Advisory, Due Diligence, etc.

<Funai Soken Agata FAS Co., Ltd. Official Website>

https://ma.funaisoken.co.jp/

Inquiries Regarding This Matter

TEL: 0120-901-080 (Business Hours: Weekdays 9:45 AM - 5:30 PM)

<Inquiries from Media Regarding This Matter>

Funai Soken Agata FAS Co., Ltd. Public Relations: Sakakibara

MAIL: funai-ma-toiawase@funaisoken.co.jp