M&A Global Capital Launches Full-Scale Operation of 'THE DEAL COMPASS,' a Proprietary M&A Process Framework

M&A Global Capital Co., Ltd. (Headquarters: Minato-ku, Tokyo; Representative Director: Yudai Metoki; hereinafter 'the Company') announces the full-scale launch of 'THE DEAL COMPASS,' its unique M&A process rules, aimed at enhancing the quality of SME M&A support and building a reproducible consulting structure.

'THE DEAL COMPASS' is a proprietary M&A process framework formulated by the Company based on guidelines such as the 'SME M&A Guidelines (3rd Edition)' by the Small and Medium Enterprise Agency, the 'Self-Regulatory Rules' of the M&A Support Institution Association, and the 'Mission, Ethics/Code of Conduct, and Knowledge Skill Map for SME M&A Professionals' by the Small and Medium Enterprise Agency.

Under the corporate philosophy (MAGC Spirit) that 'Human life is finite, but corporate life is infinite,' the Company views M&A not merely as buying and selling companies, but as a critical decision-making process that connects business owners' lives, employee employment, relationships with business partners, and the future of companies to the next generation.

Therefore, the Company believes it is essential to build a structure where all M&A consultants can judge and act based on the same criteria, rather than relying solely on the individual experience or intuition of the person in charge.

Through 'THE DEAL COMPASS,' the Company has systematized judgment criteria, verification items, and codes of conduct at each stage, from initial consultation, enterprise valuation, matching, basic agreement, due diligence, and final contract to closing and post-closing support.

Furthermore, the Company conducts one hour of employee training every business day for all M&A consultants. This training focuses on building an M&A support structure that combines customer-first approaches, transparency, ethics, expertise, and speed through understanding process rules based on 'THE DEAL COMPASS,' as well as the use of checklists, testing, and role-playing.

Background of the launch of 'THE DEAL COMPASS'

The use of M&A as a means for business succession and growth strategy for SMEs is expected to become increasingly important in the future.

On the other hand, M&A is a major life-changing decision for business owners. For both selling and acquiring companies, there are many critical issues, such as information asymmetry, transparency of fees, conflict of interest, management of confidential information, verification of credit for acquiring companies, personal guarantees, and prevention of trouble after the final contract.

Under these circumstances, M&A support institutions are required to provide sincere and highly transparent support so that clients can make appropriate decisions, rather than just supporting the completion of the deal.

As an M&A brokerage firm, the Company believes that providing high-quality support for each case requires building a reproducible support structure as an organization by organizing rules, judgment criteria, and education systems, rather than relying on individual, person-dependent experience.

Therefore, the Company formulated 'THE DEAL COMPASS' as a quality standard for M&A processes and has begun full-scale operation as a guide for judgment and action in practice.

About 'THE DEAL COMPASS'

'THE DEAL COMPASS' is an M&A process rule independently formulated and operated by M&A Global Capital.

The term 'COMPASS' incorporates the meaning that the Company will act as a sincere guide to lead the case so that both selling and acquiring companies do not lose sight of the direction they should follow in the complex and important decision-making process called M&A.

In the field of M&A, multifaceted issues such as finance, tax, legal, labor, business synergy, human relationships, and the thoughts of business owners occur simultaneously.

With 'THE DEAL COMPASS,' the Company is clarifying items to be verified at each stage, contents to be explained to clients, issues to be considered internally, and situations requiring coordination with external experts, advancing the development of a structure where all M&A consultants can proceed with cases based on the same criteria.

Key components of 'THE DEAL COMPASS'

1. Customer-first Support Policy

The Company does not aim for the completion of M&A itself, but emphasizes support that leads to the continuation, growth, and development of the business after the M&A for both selling and acquiring companies.

To connect the history, employees, business partners, technology, and brand of the company, which the selling business owner has carefully cultivated, to the next generation.

For the acquiring company as well, to maximize business synergy and lead to growth after the M&A.

The Company aims to realize M&A that is meaningful for both parties.

2. Clarification of Important Matters and Contract Contents

When signing an M&A support contract, the Company will sufficiently explain important matters such as business contents, fees, contract periods, direct negotiations, exclusive clauses, tail clauses, confidentiality, and conflicts of interest, and clarify the contract contents.