| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1415.95 | 23 |
| Intrinsic value (DCF) | 33301.19 | 2798 |
| Graham-Dodd Method | 648.08 | -44 |
| Graham Formula | 9443.02 | 722 |
M&A Research Institute Holdings Inc. (9552.T) is a Tokyo-based financial services firm specializing in M&A brokerage and media services for small and medium-sized enterprises (SMEs) in Japan. Founded in 2018, the company operates an M&A advisory platform and publishes industry research through its portal and magazine. It serves diverse sectors, including construction, IT, healthcare, finance, retail, and manufacturing, facilitating transactions and providing market insights. The company has rapidly grown its market presence, leveraging Japan's active SME M&A market, which is driven by succession planning and industry consolidation. With a market cap of ¥78.8 billion (as of latest data), M&A Research Institute stands out for its niche focus on mid-market deals and digital-first advisory approach. Its asset-light model and strong cash flow generation (¥5.5 billion operating cash flow in FY2023) underscore its scalability in Japan's fragmented M&A services sector.
M&A Research Institute presents an attractive growth investment given Japan's accelerating SME M&A activity, with over 70% of business owners aged 60+ driving succession-related deals. The company's 35% net margin (FY2023) and debt-light balance sheet (¥58.8 million total debt vs ¥10.2 billion cash) provide financial flexibility. However, its concentrated domestic exposure (100% Japan revenue) and reliance on transaction volumes make it sensitive to economic cycles. The zero dividend policy may deter income investors despite strong EPS growth (¥90.44 diluted EPS). Valuation multiples should be monitored given the stock's beta of 0.77, suggesting moderate volatility relative to the Japanese market.
M&A Research Institute competes by combining digital efficiency with SME specialization—a contrast to traditional advisory firms. Its proprietary matching algorithms and fixed-fee model (vs. percentage-based fees) disrupt conventional M&A brokerage, particularly for deals under ¥1 billion. The company's media division creates a lead generation funnel, while competitors typically lack integrated publishing arms. However, it faces limitations in cross-border deals and lacks the brand recognition of global banks. Its tech-enabled platform achieves higher margins than labor-intensive peers but may struggle with complex transactions requiring hands-on advisory. The firm's 2018 founding gives it agility versus legacy players, though this means shorter track records in large-scale deals. Competitive threats include online M&A marketplaces and accounting firms expanding into transaction services. Defensively, its sector-specific expertise in construction and healthcare provides niche defensibility.