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Japan's inbound potential

Japan’s inbound potential, a special newsletter produced by Deloitte in collaboration with Mergermarket, takes an inside look at these trends and others.

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2014.02.28 Japan's inbound potential
While attention remains fixed on corporate Japan’s impressive outbound buying spree, anticipation has been building for a renewed influx of foreign investment in the year ahead. This is likely to occur first through property transactions as a number of foreign real estate funds begin to enter the market. Another of Japan’s strengths lies in the tech sector, where investors from abroad look to cash in on innovations in everything from handheld tech to advanced industrial capabilities. Japan’s inbound potential, a special newsletter produced by Deloitte Tohmatsu in collaboration with Mergermarket, takes an inside look at these trends and others.

Highlights from the newsletter include:
  • Inbound M&A has remained stagnant in recent years but is expected to rebound on the heels of increasing interest in Japanese real estate and the optimism surrounding Japan’s economy as a result of Prime Minister Shinzo Abe’s economic stimulus plans known as “Abenomics” and Tokyo winning the bid to host the 2020 Summer Olympics.
  • Japan’s industrial sector and tech space accounted for a combined 51% of completed inbound deals and 49% of deal value over the past four years as foreign investors search for deals among Japanese electrical components and advanced battery manufacturers.
  • While domestic firms have been the dominant participants in private equity in Japan, international firms continue to solidify their place. Since 2010, international private equity firms completed 38 deals worth ¥1.2tn (US$12.3bn), compared to domestic firms with 96 buyouts worth ¥979bn (US$9.9bn).
  • By the numbers, buyers from outside Asia have shown the most interest in Japan, completing 66% of inbound transactions since 2010. In value terms, the divide is even more impressive with non-Asian acquirers accounting for 84% of deal dollars, or roughly ¥3.4tn (US$35bn) in acquisitions.
  • An exclusive interview with Tsutomu Kishi, Partner at Deloitte Tohmatsu Financial Advisory Reorganization Services, and Tomokazu Hashimoto, Senior Vice President, Deloitte Tohmatsu Financial Advisory Reorganization Services, on developing trends in Japan’s real estate market.
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