Bangkok, Thailand – Nihon M&A Center Holdings, a leading merger and acquisition (M&A) advisory firm for SMEs, today announced the establishment of ASEAN to Global Capital (A2G Capital), a subsidiary fund management company aimed at supporting the expansion of Japanese companies into the ASEAN region. This fund will facilitate cross-border M&A transactions, with the first partnership kicked off in Malaysia with CK MAC Global Sdn. Bhd., a trading company specializing in Computer Numerical Control (CNC) machineries and providing after-sales services, which has a presence in Malaysia and Singapore.
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Through this fund, A2G Capital focuses on promoting cross-border M&A opportunities between Japanese companies and small and medium enterprises (SMEs) within the ASEAN region. This initiative underscores the company’s commitment in assisting these SMEs in restructuring their operations, thus, fostering successful partnerships with Japanese companies as the ultimate outcome.
Yusuke Ojima, Head of ASEAN region of Nihon M&A Center Holdings said, “For decades, Japan and ASEAN have forged strong business partnerships, driven by a mutual commitment to economic development in the region. With A2G Capital, this represents a significant step in facilitating cross-border investment opportunities, and we are dedicated to providing our clients with the resources and expertise to navigate international M&A complexities, fostering successful partnerships that promote sustainable growth.”
He added that, with Japan’s domestic market at the phase of maturity and saturation, it presents limited growth potential compared to the dynamic and rapidly expanding economies in foreign markets. The ASEAN region, including countries such as Malaysia, Singapore, Indonesia, Thailand, and Vietnam, offers significant opportunities for Japanese companies seeking to diversify and grow.
By expanding their investments into these high-growth markets, Japanese companies can not only mitigate risks associated with domestic economic fluctuations but also leverage new opportunities for long-term growth and market expansion.
A2G Capital will support SMEs in two main phases:
Phase 1: Business Restructuring
- Provide consulting and support in restructuring the organization to prepare for mergers and acquisitions.
- Assist in selling company shares to interested investors through Nihon M&A Center’s consulting services.
- Ensure compliance with Japanese business standards.
- Offer a structured Post-Merger Integration (PMI) approach.
Phase 2: Post-Merger Support
- Provide guidance and resources necessary for business integration after the merger.
- Help reduce time and costs in mergers and acquisitions.
- Reduce the need for direct management involvement in strategic decisions.
A2G Capital’s First Partnership in Malaysia
A2G Capital has commenced its first partnership in Malaysia with CK MAC Global (CK MAC Global Sdn. Bhd.), a trading company specializing in Computer Numerical Control (CNC) machinery and providing after-sales services, with operations in Malaysia and Singapore.
Japanese Investment in ASEAN
Japan’s international investment data indicates that in 2023, Japan invested a total of US$241.1 billion in ASEAN countries, while the total Foreign Direct Investment (FDI) inflow from Japan to ASEAN amounted to US$14.5 billion.
- Malaysia: Japan continues its robust investment in Malaysia, contributing approximately US$1.15 billion (RM5.5 billion), with strong growth in electronics and automotive sectors.
- Indonesia: Despite global challenges, Japan remains a significant investor, injecting around US$4.63 billion into Indonesia.
- Thailand: Japan’s commitment to Thailand remains solid, with US$1.08 billion (THB 40.2 billion), focused on advanced manufacturing.
- Vietnam: Japan invested nearly US$6.57 billion, representing over 17.9% of the total investment and a remarkable 37.3% increase from the previous year.
- Singapore: Japan’s investment in Singapore surged, reaching US$5.76 billion (SGD$7.89 billion), highlighting strong collaboration in finance and technology.
Nihon M&A Center specializes in restructuring corporate governance to align with Japanese business standards and providing a structured approach to Post-Merger Integration (PMI), ensuring a seamless transition into Japanese business culture. This investment model minimizes the time and costs associated with successful exits while reducing the need for direct management involvement in strategic decisions, allowing businesses to operate more efficiently.
About Nihon M&A Center Holdings
Nihon M&A Center is a premier Japanese advisory firm with an outstanding reputation in mergers and acquisitions (M&A) for small and medium-sized enterprises (SMEs). With over 33 years of experience and more than 9,000 successful transactions, the firm has established itself as a trusted partner for businesses seeking sustainable growth through strategic M&A.
Specializing in cross-border transactions, particularly within the ASEAN region, Nihon M&A Center serves a wide range of industries, including manufacturing, logistics, construction, food, IT, and retail. The firm’s primary clientele consists of regional SMEs and family-owned businesses, many of which are addressing succession challenges while aiming for expansion.
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